Your job is obviously your main source of income, but just how much does it actually impact your financial stability? If you were to lose your job, would you be able to cope financially? For the majority of Brits, the answer there is no. Your job impacts your financial stability much more than you might realise. Here, you’ll discover some of the ways your career affects your finances.
Helping you to save
Having a regular income doesn’t just help you to get by, it also helps you to save. Saving money towards life’s goals and unexpected events can give you a high level of financial stability. It’s comforting to know that if anything should happen, you have money available as a backup. Obviously, the amount you save is dependent on the amount you earn, but every little bit helps in terms of a savings pot.
Impact on insurance premiums
Did you know that your job title can even have an impact on your financial stability? If you take out any form of insurance, your job title can impact the amount of premiums you have to pay. According to research from Your Money, being careful with how you word your job title could reduce as much as 25pc from your premium.
This is because certain jobs are considered more dangerous than others, so if you’re a window cleaner, you could be charged more for insurance than an office worker for example.
Covering the cost of living
The main way your job affects your financial stability, is by covering the cost of living. It’s no secret the cost of living has increased significantly in recent years, with many families struggling to get by. The cost of wages is yet to match the rise in the cost of living, which means a large number of people who are working are barely getting by. This leads to the need for financial help just to cover food, fuel and other basic living expenses.
As you can see, your job does have a major impact on your financial stability. From determining how much you can save, to whether or not you can even afford to get by, your job choice can make a huge difference to your financial situation. Therefore, if you’re struggling with financial stability, it may be worth looking into your job status to see if a change would benefit you.