Today, right now…I want you to create a career insurance policy.
What would happen if you lost your job tomorrow? Do you have at least six months of salary in your savings account (and this might not even be enough)?
Putting money aside is a great idea, but most people don’t feel they can afford to. If you lose your job, you’ll need to do something to replace the income you’ve lost. And you can begin making money today to put aside.
Your financial advisor suggests you disperse your investments across a portfolio of instruments such as mutual funds, stocks, and bonds to protect your money. Yet, most people have not applied this same logic for diversifying and protecting their income.
It used to be that having one job was good enough. This was back when you joined a company and were practically guaranteed a job until you retired from that company. No one worried about downsizing, mergers, acquisitions, or outsourcing.
The world of work changed. Jobs no longer last a lifetime.
When your job ends, where does that leave you? If you’re eligible, you can collect unemployment benefits for up to 26 weeks. These weekly checks won’t replace your lost income. However, if you’ve been saving money you may have enough to make up the difference. When you’re unemployed, you don’t want or need the added stress that comes from financial worries. It is stressful enough to be in a job search. The solution is dispersing your sources of income.
Ideas for Additional Income
You may have heard about people who make millions flipping real estate or perhaps you’ve seen the work-at-home scams. Be wary of those things that sound too good to be true.
Your options to generate additional income are limited only by your creativity. You could launch an online store, offer consulting services, turn a hobby into an income-generator by selling products or providing instruction, or join a direct sales or multilevel marketing opportunity with a company like Pampered Chef or you could drive for Uber, Lyft or deliver groceries through services like Instacart or Peapod.
Whatever side business you are considering, remember these things:
Seek Help From Others
Bounce your business ideas off of people you know and respect. And once you begin your business, find a network of solopreneurs who can advise you and whom you can consult with to find new solutions for running your business.
It Takes Time
As terrible as it sounds, you’ll have to give up some of your free time to get your side business up and running.
Just Say Yes
You could say you don’t have time, you don’t have any ideas for a business, or you aren’t cut out to be in business for yourself. Maybe these excuses are true, however, consider the alternative- you lose your job and run out of money.
This is a topic I am pretty passionate about and I’ve written about it before. Here are some posts for more information to help you embrace the concept.
Developing a Career Insurance Policy
Hannah Morgan speaks and writes about job search and career strategies. She founded CareerSherpa.net to educate professionals on how to maneuver through today’s job search process. Hannah was nominated as a LinkedIn Top Voice in Job Search and Careers and is a regular contributor to US News & World Report. She has been quoted by media outlets, including Forbes, USA Today, Money Magazine, Huffington Post, as well as many other publications. She is also author of The Infographic Resume and co-author of Social Networking for Business Success.