No one wants to receive the news that they are out of a job. Unfortunately, a layoff can happen — especially when you least expect it. Knowing you are no longer working can be stressful. You may worry about how you will pay your bills even without a steady income. This fear is understandable, but you should know that a layoff can benefit your finances. Here’s why getting laid off can be an unexpected win for your wallet.
You can prioritize the better paying job
Many workers stay in their current jobs even if they are not satisfied because it is easier to stay with their current employer than to put themselves out there and look for better opportunities.
A layoff can be a significant victory if you’ve felt underpaid and undervalued for a long time. When you’re looking for a new job, you may want to prioritize jobs that offer better pay and benefits.
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Do research before applying for jobs if you need clarification on a competitive salary for your desired role. You can use online salary database tools or talk to colleagues in your industry.
If you want to earn more money, choose your comparison job listings. You may feel resentful if you settle for a new opportunity that pays the same or less than your previous role.
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It may take time to take on a new role, but when you land a job with a salary commensurate with your experience and skills, you’ll feel more valued. And if you’re working hard to reach your personal financial goals, increased income will help you get there.
You can spend time building your own business
Here’s one way a layoff can benefit you financially – you can switch and make money from your own business. As an employee, your work benefits the company, not you individually. Beyond building skills (and of course a regular paycheck), your job itself won’t benefit you in the long run. But if you’re a freelancer or small business owner, the work you do every day directly affects you.
Getting laid off can be the perfect push to make your goal of starting a small business a reality. Starting a business is hard work, and it takes time to build a successful company. But if you don’t have a job to go to every day, you have more time to commit to this goal.
This is easier to do if you have a solid emergency fund. Make sure you can afford to pay your bills without credit card debt. If you have little money in your savings account, another option is to get a part-time job while you spend time growing your business.
Many people who switch to freelance work or start a business earn better income and feel fulfilled. One thing to consider is changing your finances as a business owner. If you want to start a business, check out our small business resources for more financial tips.
The layoff isn’t all bad news
Yes, a miscarriage can be life-changing, and you may initially feel frustrated and stressed. All the emotions you experience are valid. But it can be beneficial to frame your thinking differently instead of focusing only on the negatives. Earning more money by getting a better paying job or building a business you love can be a big win in your bank account.
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