Protecting Your Income: 6 Must Read Tips September 23, 2014My MoneyOff

Making the most of your income is vital. Many people forget that their income is never completely secure. You may have job security and be sure in your position, but you need to make sure that you have a back-up plan. You are not psychic and, as such, you can’t predict the future. There are plenty of things that could shake your career ladder and mean that you fall to the ground. Make sure that you plan for every instance. Doing so gives you a safety net so that if the worst should happen you can still survive. Here are six must read tips that will help to protect your income.

  1. Ensure you have access to sick pay

It is your legal right to get statutory sick pay and, as such, your employer has to pay you a certain amount if you can’t work due to sickness. The problem is that this amount will be significantly lower than your average wage. That means that you won’t have enough money to live on if you are sick for an extended period. Talk to your boss and find out what he or she offers by way of sick pay. Many companies are generous when it comes to extras such as maternity cover and sick pay so it is worth knowing your stuff. If your company doesn’t offer enough by way of sick pay, you should look to insurers. You need to make sure that you don’t lose out if you ever need to take time off.

  1. Take out an insurance policy

To protect your income in the long run, you should take out an insurance policy. Few people take out these policies because they fail to think about their job stability. Compare income protection insurance policies to find the best deal to suit you. You could find that having this extra level of protection means that your finances are secure. Most policies will provide you with around 75 percent of your income when you become ill. That means that if you do need to take time off, you will have a regular income on which to survive.

  1. Start saving now

It is never too early to begin saving. You may think that you have other priorities, but there is nothing as important as saving for yourself. Make sure that you save a little each month when you receive your salary. Doing so will mean that you have a lump sum to fall back on when times get hard. Having that money will make a huge difference if you are ill or have to leave your job.

  1. Look into layoff packages

When companies layoff their staff, they pay a severance package to staff members to help tide them over for a few months. Even if you feel your job is safe, it is worth looking into what packages your company offers. When you take on a new job role, you can negotiate the terms of your contract. When you do so, you should make sure that you have an ample severance package.

  1. Create an extra income stream

Relying on just one income means that your world relies on one person. If your boss decides to get rid of you, you will have no money and no income. You can make sure that your finances are secure by creating an extra income stream. Look into part-time jobs and online schemes that can help you make money.

  1. Look into tax credits

If you are on a low income, you might be able to claim tax credits. Look into your rights and see what you can claim today. Ensuring that you understand the system means that you can protect your income and your finances in the short term.

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