The truth is that most employees think about their money in quite straightforward ways – they’ll think about their salary, the bills they have to pay with it, and maybe a bit of saving if there’s enough left over. But there are actually some financial risks sitting in the background that people don’t tend to notice until something goes wrong – and then it can be a disaster. That’s why it’s best to uncover those hidden financial risks so you can prepare for them wherever possible – keep reading to find out more.
Income Might Not Be Secure
A lot of people totally rely on their paycheque for everything, including their rent or mortgage, food, childcare, transport, and so on. Everything comes from the assumption that the money’s going to keep coming in every month, and you’ll be fine as long as it does.
But what if it stopped? What if you couldn’t work due to illness or injury? What if you were made redundant or lost your job? The fact is that even a short gap in your income can put you in serious financial difficulties that can last for months, even after you go back to work.
Benefits Might Not Cover What You Think
Some employees assume their workplace benefits will protect them if something happens, but those policies can really vary, and you might find the sick pay you thought you’d be entitled to is a lot lower than you expected, and perhaps disability coverage won’t apply in your specific situation, and so on. Plus, some benefits actually have waiting periods or strict requirements, and if you don’t meet them, there won’t be a payout.
That’s why it’s so important to read all the details, even if it’s a boring thing to do. It’s worth knowing exactly what you could get should something happen so you’re prepared for the worst, just in case.
Workplace Injuries Can Create Long-Term Costs
If you’re injured at work, the impact isn’t only a physical one – there are financial problems to think about as well. You might have to pay medical bills, for example, then there’s going to be time off work, reduced earning capacity when you go back (if you go back), and ongoing treatment to think about. It can all add up quickly, and it can all add up to a lot.
In some cases, it’s best to get advice and help from an expert L&I attorney so you can understand your rights and options, especially when workers’ compensation claims get complicated. True, it’s not something most people plan for, or even think will ever happen to them, but it’s worth knowing where to turn if it does happen to you.
Lifestyle Inflation Is Real
As your income increases, you’ll probably start spending more as well – it’s what most people do, and it makes sense. You might go for a nicer home, for example, a better car, more subscriptions, or you might just treat yourself a bit more. It all feels fine because you’ve got the money to cover it, and you’ll probably feel good because you’re earning enough to make your life a bit better.
However, it’s also easy to get carried away, and eventually even people on a good salary can still feel financially stretched because they’ve gone too far. And if anything were to change with your salary, you’d be in a very tricky situation. It’s better to set aside a bit of fun money so you can still enjoy yourself, but keep some back just in case, and that way you should be covered.
