Saving Money Today Can Help Chicago Workers Deal With Unemployment Tomorrow
Living in fear is no way to spend your life, but living in denial can be just as bad. Yet that's what millions of Americans are doing in today's unstable job market.
Despite the fact that one out of every 10 workers is unemployed and 55 percent of Americans fear they could soon lose their job, we're doing almost nothing to prepare for a possible layoff, according to MSNBC.com. Almost half of workers say they don't have enough money to pay the bills for just one month without a paycheck.
No one likes to think about the worst case scenario. But facing your fears and preparing for the worst today can ease your pain - and pad your wallet - just in case your luck runs out tomorrow.
Let's say you get laid off next week and you have no savings. You'll either have no way to pay the bills - meaning you risk losing your home, car and any other assets - or you'll use your credit cards to cover as much as possible, racking up impossible-to-pay debts with sky-high interest and damaging your credit score in the process.
Now let's imagine you lose your job, but you have enough cash stowed away to make it through a few months. Instead of worrying about how you'll manage the mortgage or buy the groceries tomorrow, you can work on sending out your resume and scheduling interviews - so you can get back on your feet and into a paycheck ASAP.
Setting aside just a small portion of your paycheck into an emergency fund each month can be the difference between whether you sink or swim if you do lose your job. No one wants to get laid off, but knowing that you'll survive even if you do can be a big relief.
There's another way to find relief - lowering debt. By freeing up money that's currently going to credit card bills and loan payments each month, you'll have more to apply towards your savings, making your finances more secure. If debt is holding you prisoner, the right bankruptcy plan can help you break free. Wondering if bankruptcy is right for you? Find out more for free when you try a complimentary debt analysis with a professional bankruptcy attorney in Chicago.