The 7 strategies to protect yourself in case of unemployment

This is where you should start. Have you ever looked at the balance on your ATM receipt and not understood where you spent the money? Use one of the many apps available on Google Play and App Store or create an Excel spreadsheet to calculate your monthly expenses.

Start by printing or downloading all your bank account transactions and checking, one by one, where the money went.

Then divide these expenses into two groups: fundamental ones and ancillary ones. The goal is not to start cutting expenses or depriving yourself of small pleasures.

The idea is to update this accounting so that, in the event of unemployment, you know exactly where you can save and how much income you need for daily life.

2. Have a safety net

Having savings to serve as support in case you become unemployed is an essential condition. This saving must meet two conditions:

> Having reduced risks: more important than earning a lot of interest is having the capital you have set aside available;
> Be easily accessible: it must be possible to save or withdraw without too many constraints.

Ideally, the value of this “safety net” savings should match the value of all key fixed expenses x 12 months. This way you ensure you have a “financial cushion”.

3. Invest in training

It seems like an obvious tip, but it’s one of the most important. Whatever your professional situation, continue to study and deepen your knowledge.

According to a study by the Pew Research Center, more than half of American workers believe that lifelong learning is essential. It’s time to prepare for this reality.

Furthermore, if you can reconcile theory with practice, even better. Volunteer in areas where you have received training to supplement your mastery in that skill. It’s an easy way to enrich your CV.

4. Take care of your image

An outdated and shabby resume doesn’t convey confidence. After all, why would they choose him among a crowd that wants to escape unemployment or improve their professional life? Nowadays you can find many resume templates online.

But don’t let it stop there. Enhance your LinkedIn, the most used social network for professional contacts. At the beginning of 2018 it had 562 million users, of which 2.6 million were in Portugal. Plus, it nurtures your network of contacts.

Define a metric: If you meet one new person per week, at the end of the year you will have 52 new contacts. There are 52 people who can help you find a new job.

5. Have a plan B in case of unemployment

You’ve probably heard that you shouldn’t put all your eggs in one basket. This also applies when it comes to your career.

Dare to answer two questions:
> What do you really like to do?
> What does it do very well?

When you find the same answer to these two questions, you will find yourself faced with a valid alternative for your professional life.

6. Protect your home

One of the biggest concerns for those who become unemployed and lose their monthly income is becoming homeless. Currently, as a tenant, you can protect your home in the event of involuntary unemployment through rental protection insurance.

Tranquilidade Income Protection Insurance can guarantee 4 or 6 months of income, which will allow you to gain some time for your family to get back on their feet.

The rent protection landscape is expected to change in the near future. The Government is negotiating the creation of two new insurance policies to provide greater protection for tenants.

The first will involve a sudden drop in income, caused by death, disability or unemployment. The second insurance will cover damage to the property, which will allow the waiver of guarantors or the payment of deposits.

7. Plan what you would like to be like in 5 to 10 years