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Why an Emergency Fund Should Be Part of Your Career Plan

Why an Emergency Fund Should Be Part of Your Career Plan
From Recruiter - February 16, 2017

As you progressin your career, finding a new job can become harder and harder. One of the big reasons for this has to do with salary. When you first start working, you are generally open to just about any job and will happily take a tiny paycheck.However, as you rise through the ranks of your industry, your salary requirements will evolve.

One challenging situation that many job seekers face is when they want to leave a job but are financially unable to. In general,one of two scenarios is preventing the job seeker from leaving: They are either living right up to their means and spending every dollar they make each month, or they do not have a safety net in the form of an emergency fund.

A job seeker with no emergency fund who needs every dollar to pay their basic bills feels trapped. Its even worse if the job seeker is being treated poorly at work: They cant financially afford to leave, butthey cant emotionally afford to stay.

Dont Get Trapped: Start an Emergency Fund

To protect yourself from gettingtrapped in a scenario like the one described above, do two things.

First,scale back your fixed expenses if possible. Then, take the extra money youre saving each month and put it into a savings account. That account will serve as your emergency fund. Ideally, your emergency fund should carry you through six months of living expenses. I recommend keeping your emergency fund in a savings account because itwill be protected from market fluctuations that way.



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