Financial Lesson:
Good Planning Can Offset the Setbacks of Job Loss
Automation is here to stay. Experts say that jobs based on routine, repetitive tasks will be steamrolled by automation first. But, no job may be immune from the impacts of advancing technology in the world of automation.
That's grim. But it's not all bad news if it brings better quality jobs and a higher quality of life for us humans.
In fact, one study found that, while automation would eliminate lots of lower-level legal jobs, at least 80,000 new jobs would be created - many of which would be higher-skilled, higher-level jobs, like attorneys.5 And this trend isn't isolated to the legal world.
Automation isn't the only threat to a job.
Many other factors, beyond automation, can cause an unexpected hiccup in your employment. Downsizing, mergers, shutdowns, and plain bad luck can also cause an unexpected job loss.
So, what can you do about it? Here's a few ideas to consider:
Future-proof yourself. Invest in job skills that can't easily be replaced by automation. "Soft skills", like critical strategic thinking, creativity, problem solving, and communication can't easily be replaced by a robot.
Make sure you've got enough emergency funds set aside. A financial cushion can give peace of mind that you have a safety net if your job disappears.
Develop a Plan B. What if you get laid off? Do you have a side hustle that can bring in income? Can you consult or contract until you find another full-time job?
Bottom line: Make a plan now for an unexpected job loss.
What do you think? How do you feel about the future of automation? Would you have the financial cushion you need if robots came for your job?
If anyone you know would like some advice from a pro at planning for an uncertain future, give my office a call at 512-662-1835 or shoot me an email at brianfry@safelandingfinancial.com.
