Today’s job market leaves little room for comfort zones, and stability can feel more like a luxury than a guarantee. Industries are evolving, companies are restructuring, and job security has become a concern for even the most senior employees.

Although you can’t control the job market, you can take a variety of steps to safeguard your future. They fall into 3 broad categories:

• Protecting against short-term income loss when you’re between jobs – with insurance, savings and investments.
• Staying relevant to your industry and providing continuous value, so that you keep advancing your career.
• Building alternative income streams or developing personal skills – to help you get a job or start a business in a new industry.

Safety nets to help secure your future

1.    Save like you’re paying your own future salary

You should live in the moment and seize the day – but only after you’ve prepared properly for your financial future. An emergency fund is non-negotiable. Build one with monthly deposits into a dedicated emergency savings account until you’ve set aside 3 to 6 months’ worth of living expenses.

If you lose your job or can’t work for an extended period, this emergency fund will be there to cover essentials like rent, groceries, and water and electricity bills. It’s a cushion that gives you breathing room, and it means you won’t have to rely on debt until you have an income again.  

2.    Invest while you’re employed

Use your current salary to create wealth over time by capitalising on compound interest. Generally speaking, long-term investments earn better returns because you can keep reinvesting the interest and dividends that you’ve earned back into the original investment. This earns you interest on interest, called compound growth, and helps your investment even out any short-term market fluctuations. 

The longer you can stay invested, the more your money can grow, so it’s never too early to start. Contribute to retirement funds, open a tax-free investment account, and consult a financial planner on the best way to diversify your investment portfolio.  

3.    Get income protection insurance

If you’re retrenched and your employer has complied with the law, registered you with the Unemployment Insurance Fund (UIF), and made your monthly contributions, you will be eligible to apply for UIF. However, this process can take some time, and UIF pays only a portion of your salary – less than half – for a maximum of 12 months. If you’ve been working and paying into UIF for less than 4 years, you’ll qualify for payments for a much shorter period – perhaps 3 to 6 months, depending on how many days you have worked.

All in all, your UIF payments may not be enough to cover your everyday expenses for long, so it’s wise to find a way to add to it. Income protection insurance will cover a percentage of your salary for a specified time not only when you’re retrenched, but also if you’re forced to stop working due to serious illness or disablement.  

Note that income protection insurance doesn’t cover you when you’re a full-time employee on paid temporary sick leave.
 

4.    Diversify your skills

Stay up to date with the latest trends in your industry, but work to broaden your skill set, too. The more you can do, the more opportunities you can apply for. Future-proof your career by learning and developing new skills continuously.

This doesn’t have to be with a full-on degree in a new field. You can expand your capabilities with online courses, certifications, and skills workshops. This versatility will make you more adaptable in a competitive job market, especially in rapidly changing industries.  
 

5.    Start a side hustle

An additional job, even in your spare time, brings in more money – but more importantly, if you lose one income stream, you’ll still have the other to fall back on. A side hustle can help you build savings and pay off debt faster, whether it’s freelancing, online product sales, online classes teaching specific skills, or a professional service. And if you can develop it until your side hustle income matches that of your other job, you may even be able to turn it into a full-time career.  
 

6.    Keep your CV updated

As you upskill yourself and take on new responsibilities, update your CV so that you’re always prepared for new job opportunities. The same goes for your portfolio and your profile on any business or social media platforms. A LinkedIn profile can serve as your virtual CV – but check your account and privacy settings and opt out of any features you don’t want, like permission to use your personal data for AI training. Regularly highlight your achievements, skills, and certifications, and you’ll be ready to apply for a new role at a moment’s notice.
 

7.    Explore passive income streams

Invest in opportunities that can generate passive income like rental properties, dividend-paying stocks, or selling digital products. They can provide financial stability even when your main income is disrupted.
 

8.    Speak to a professional

A financial planner can help you align your budget to your current goals and plan your financial future. An expert can guide you through budgets for your everyday expenses, savings accounts for emergencies, and long-term investment strategies to protect and build your wealth.  

By taking these steps, you can guard against potential unemployment, while at the same time creating a foundation to build your wealth. Start building your safety nets today, so you’ll be prepared for tough times and still be able secure all your lifestyle goals.