It’s fair to say that there are numerous issues in life that can absolutely destroy your income. When this happens, you can end up in serious trouble. The debt can start to build and eventually reach obscene amounts that you won’t be able to afford or handle yourself.
At the same time, you could have dependents such as a partner or even children who rely on you to provide the income they need for a good quality of life. While you may not be able to predict when a situation is going to hurt your finances, you can take the right steps now to ensure that a hit to your income doesn’t leave you dead in the water. Let’s explore some of the best possibilities.
Redundancy
Obviously, one of the most common reasons that there could be a nasty hit to your income is if there is an issue with redundancy. It is possible that your employer ends up letting you go and this can occur due to a wide variety of reasons. For instance, you might find that your business is downsizing. A lot of companies are taking this step right now to cope with the pressure of the continuing coronavirus pandemic.
Alternatively, it could be that they are simply going in another direction with the business and the sector that you work in is no longer relevant. Now, there’s no way to fully predict if this is going to happen, but you can definitely learn to read some of the signs that things are changing. For instance, if the economy isn’t particularly healthy, then there’s a good chance that businesses are going to think about downsizing. As such, this will always be a good time to start exploring the market and seeing if there are any other opportunities out there for you.
You also want to keep up with local news developments because certain stories could impact your industry. For instance, if the government decided to crack down on PI claims, then it’s fairly obvious that your job as a PI lawyer could potentially be in jeopardy. You should be wary of anything that is going to impact the demand for your business.
Legal Lows
It’s possible that a legal issue is a reason for your loss of income. For instance, you could go through a divorce and if that’s the case then your home income could be halved overnight. While you might think this means that you have fewer bills to pay, that’s not the case. For a situation like a divorce, you always need to ensure that you are getting the right legal counsel. You should also ensure that you discuss the subject of divorce and the financial decisions before you get married. While this can seem like you are willing the marriage to fail, it’s always better to have a plan.
Of course, in other cases, you could have broken the law and this may have landed you in hot water. For instance, you might have had your license revoked after being found guilty of drink driving. While this won’t impact your income directly, it could leave you with no way of getting to work. The good news is that in some locations you can get a hardship license. This can be the answer you need and will ensure that you can still work even if you don’t have your full license anymore.
This is why it’s important to know all your options legally.
Injury Or Disability
It’s also possible that you have experienced an accident that has left you with a long term injury or even a disability. When this occurs, it can be another reason why you are unable to work. That’s a problem, particularly when you could have medical bills to pay and you might even need to make substantial changes to your lifestyle or your home. This is all going to cost you a lot of money that you no longer have. It’s no surprise that those with disabilities are far more likely to end up in debt, particularly in the long term. So, how can you cope with this?
Well, first you should consider insurance options. You can get disability insurance and this essentially means that if you do suffer from a long term injury that leaves you unable to work, you can claim on your insurance coverage. Depending on what you pay, you could access enough money to ensure that you have the same quality of life that you did before. There are always terms and conditions of these insurance claims so do make sure that you read the contract clearly, being careful not to miss out any points.
Next, you should think about who is responsible and therefore liable for your injury. It’s highly unlikely that no one is to blame for any injury that you have endured. It could have been due to a faulty product, a wet floor or an incident at work. In each of these scenarios, someone is accountable for your injury and you should consider seeking damages with the support of a lawyer.
Other Steps
Finally, there are numerous other steps that you can take to protect your income. For instance, you can think about setting up a side hustle. This is any job or role that you can complete in your spare time. If you have a strong idea, you could even plan an independent business venture.
It’s also vital that you do build up your savings as much as possible. Ideally, you should have at least enough money to cover your bills when you are not working for a total of three months.
We hope this helps you understand some of the problems that could absolutely destroy your income and leave you with very little money to your name. The good news is that you can protect yourself from these problems right now by taking the right preemptive strikes. If you take this advice, then you will never have to worry about your financial situating being dire.