FINRA’s latest education post discusses potential ways to manage the financial impact of an unexpected job loss.
In particular, FINRA outlines six steps to build a strong financial foundation that may mitigate the impact of a job loss, including:
- Building an emergency fund
- Developing a budget
- Contributing to retirement plans
- Avoiding loans against your retirement plans
- Understanding company benefits
- Using credit wisely
FINRA also encourages speaking with a financial professional who can help you plan accordingly if you lose a job. Be sure to pay close attention to what your new finances consist of, where you can cut back, and what alternatives you have for employment or income elsewhere.
It can be devastating to lose your main source of income, but planning for the unexpected may help manage the impact of a sudden job loss.