Are Your Finances in Order?
Curt Skene’s In2Win! Career Coaching Supplement.
Undoubtedly, the loss of an income can place a massive strain on your cash flow, lifestyle and relationships quite quickly. To minimize the stress take steps to lessen the impact of living on no income or a reduced budget. It’s always better to assume the worst and live within a tightened budget.
To protect yourself never assume you will easily land a new position before your severance or savings run out. This way when you land sooner than expected, you’ll be pleasantly surprised how your tight budgeting and diligent expense tracking resulted in more money in the bank. Make sure you include all of your family in the belt tightening process and not just your spouse, as everyone needs to understand what is going on and why.
While it may be humbling, ask for “financial assistance” from businesses you deal with; many companies, including professional associations, will offer discounts, waive fees or lower payments for those in financial hardship. If needed, check out the various credit protection options at your disposal and absolutely consider a “survival” job in order to safeguard your long-term assets. Never let your ego stand in the way of making the prudent financial decisions you need to make.
If you need help setting a viable plan, a quick search on the Internet will list many suggestions you can implement.
Protect your financial runway early. Waiting until money becomes urgent reduces your choices and negotiating strength.
Why I Wrote This Page
Because money stress does something specific to your thinking that most people don’t realize: it doesn’t just make you anxious, it actually narrows your ability to think clearly about anything else.
There’s real research behind this, sometimes called scarcity thinking. When people are financially stretched, their brains tunnel in on the immediate shortage and lose bandwidth for longer-term decisions, exactly the decisions a job search demands. Protecting your runway early isn’t just about survival. It’s about protecting your ability to think clearly enough to make a good career decision instead of a desperate one.
The professionals who negotiate well, wait for the right fit, and avoid panic decisions are almost always the ones who tightened their budget early enough that money never got to the point of clouding their judgment.
Action Steps
- Build a bare-bones budget now, before you need it, so you’re never making financial decisions under panic.
- Call your lenders, insurers, and service providers and simply ask if they offer hardship terms. Many will, and almost no one asks.
- Set a real number for how many months your runway covers, and revisit it monthly so you always know exactly where you stand, instead of guessing.
In2Win! Afterthought
Curt’s current observations and updated guidance will be added here.
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