No one wants to hear the news that they no longer have a job. Unfortunately, a layoff can happen, especially when you least expect it. Finding out you no longer have a job can be stressful. You may worry about how you will pay your bills even though you no longer have a steady income. This fear is understandable, but you should know that a layoff could benefit your finances. Here’s why getting fired could be an unexpected win for your wallet.
You can prioritize the best-paying job
Many workers stay in their current jobs even if they are dissatisfied because it is easier to stay with their current employer than to get involved and look for better opportunities.
A layoff could be a significant victory if you have felt underpaid and underappreciated for some time. When looking for a new job, you can prioritize jobs that offer better pay and benefits.
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Do research before applying for a job 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, be picky when comparing job ads. You may feel resentful if you settle for a new opportunity that pays similarly or less than your previous role.
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It may take some time to land a new role, but when you land a job with a salary that matches your experience and skills, you’ll feel more valued. And if you’re working hard to reach your personal financial goals, increasing your income can help you get there.
You can spend time building your business
Here’s another way a layoff could benefit you financially: You could switch gears and earn money from your own business. As an employee, your work benefits the company, not you individually. Beyond development 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 has a direct impact on you.
Getting fired could 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 no longer have a job to do every day, you will have more time to commit to this goal.
This will be easier to do if you have a solid emergency fund. Make sure you can afford to pay your bills without going into credit card debt. If you have minimal funds in your savings account, another option is to get a part-time job while you spend time growing your business.
Many people who transition to freelancing or starting a business earn a better income and feel fulfilled. One thing to consider is how your finances will change as a business owner. If you want to start a business, check out our small business resources for more financial tips.
A layoff isn’t just bad news
Yes, a layoff is life-changing and you may initially feel disappointed and stressed. All the emotions you are experiencing are valid. But it can be helpful to frame your thinking differently instead of just focusing on the negatives. Making more money by taking a better-paying job or creating a business you love could be a big win for your bank account.
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