The Impact of an Emergency Fund on Your Career
A month or so ago I woke up at 6:30am to make my son a bottle when my phone started blowing up with text messages. One said "no way!" another just said "Microsoft". I read between the lines and quickly opened my work email to read about how Microsoft had just bought LinkedIn. As I sped read the email, my first thought was about whether or not I would lose my job.
I paused after this thought to gauge my feelings and surprisingly enough I felt very calm. A big part of why I felt that was because after I finished my MBA, my wife and I made it a priority to have an emergency fund of 6 months of our expenses.
Now, I have not had this emergency fund for that long, but already it has impacted my career in a positive way by giving me peace of mind as my company goes through big changes. I had enough going through my mind that day without having to worry about feeding my family if the worst case scenario would have happened, which it did not, thankfully.
Here are a few more ways having an emergency fund could impact your career.
1. It can make you more willing to take risks. I believe you'll take more intelligent risks within your company if you're not constantly worried about getting fired and not being able to pay the bills. It can also give you the confidence to take on a new role or maybe quit to try a different company that's more risky.
2. It can prevent you from getting into an ethical mess. Fear of losing your job for financial reasons is stronger motivation than you might think to turn a blind eye to an illegal or unethical situation at work. If you feel financially confident to walk away, you'll be less likely to compromise your values if that unfortunate situation arises.
3. It can relieve stress, which makes you more productive. For the majority of Americans money is a significant source or stress. If you can take that out of the equation you can be a better, happier and more productive employee.
Just a few thoughts, if you have other ideas on how an emergency fund could impact your career, please share in the comments.
Derek Pando is a Senior Marketing Manager at LinkedIn. He writes about technology, marketing, professional relationships and occasionally waffles. Follow him on Twitter @djpando or read his blog derekpando.com
Consultant and coach! Developing top leaders!
8 年As you may recall, after 9/11/2001 there was a rush to violate to be secure in our papers, etc. Employees may have had orders to violate the privacy of the other US citizens people. Some of these may violate their sense of ethics. You can make a good case either way. Whatever the case may be, having a comfortable cushion allows you to make a more coherent decision rather than one based on mere economic necessity! GOOD POST!
Kina'ole- Doing the right thing, in the right way, at the right time, for the right reason, THE FIRST TIME- flawlessness
8 年So true! In sales I feel this is even more important. As your pay can change really throughout the year it is important to get some savings to keep everything a little more stable. Also helps to not feel subservient to a job and that you HAVE to work there or you aren't going to be able to keep the lights on. This opens you to possible new opportunities that don't pay as much at the start maybe, or even go out on your own to pursue a dream.
Senior Director, Marketing Operations at Korn Ferry
8 年Yes!! This is everything. Great read, Derek Pando.
Enabling marketers to send a better message ? Sales Director at Cordial ? Board Member at Refugee Rising
8 年Derek, if I could like this 1000 times I would. I think it also enables you to be more invested in the company you are at. If your company has a bad quarter, or there are rumors of an acquisition or layoffs, you don't always have to be planning an escape route. Of course there maybe reasons, both professionally or personally, you may decide to pursue another opportunity. However, it should be driven by strategic reasons, not because you constantly need to look for a parachute to avoid hitting the pavement. Like you, I recently achieved this emergency fund and it has changed my mentality for the better.
Marketing | Communications | Creative Project Management
8 年If you happen to be in a job transition, having an emergency fund also gives you the peace of mind to not hurry up and take the first job offered and be able to wait for the correct fit. Having that financial cushion is really important.