They’re never ideal, but career changes happen. Pay cuts happen. Professional success is not always a linear progression.
But an unexpected swoon doesn’t have to spell financial doom—if you’re ready for it. CNN’s Kathryn Vasel explains how to prepare for the worst:
Beef up your cash reserve
Don’t expect life’s unplanned events—like a car repair or broken washing—to slow down just because you aren’t making as much money. That’s why experts said it’s important to have a bulked-up emergency fund that will cover at least six months of expenses.
“Try as hard as you can to build up the savings before the change to make the transition that much easier,” said Maggie Germano, a financial coach in Washington, D.C.”