What the pending job cut at Credit Suisse can teach you about preparing for uncertainties

1 comments-0 reblogs
avatar of @iskafan
LeoFinance Badge
2 months ago - 3 minutes read

It is no longer news that mergers and acquisitions tend to have a negative effect on staff. Staff operating in redundant areas in both companies are usually laid off. This is the same bleak fate that the staff of the 167-year-old bank, Credit Suisse, will clearly be facing soon enough because the acquiring company, Swiss rival UBS, who acquired the bank for $3.2 billion, will definitely retrace their steps to align with their risk culture. margin of safety.png Source This is a conservative culture that the executive has said will revolve around wealth management, reduction of risk-weighted assets, etc. The staff is quietly encouraged to dust off their CV, even though they are assured the UBS team would know who the high-performers are and who to keep.

Apart from the fact that a merger and acquisition happen at all times, and most times without warning, it is always a good thing for one to be prepared. Losing a job unexpectedly is one of the things that could affect your finances especially if you are not prepared. This is why a six-month buffer or a well-planned emergency fund is something that has been preached for so long.

I am trying not to imagine one of the Staff at Credit Suisse had recently taken on a large mortgage or auto-loan and was biding on using his paycheck to offset the minimum payment every month. As it stands, the future looks bleak for such an individual especially if they do not land another job sooner. It is always better to plan for the best while expecting the worst especially we are dealing with a world that is filled with uncertainties.

When you plan, make sure you plan for the crazy stuff that you may not necessarily think would happen. Life can be so full of surprises and planning for those surprises is the difference between someone who pulls through a difficult financial phase and one who doesn't.

Remember that the best ROI is being able to do what you want when you want it, and how you want it. And you won't be able to enjoy this ROI to the fullest if you are not making room for errors. They call this margin of safety.

Not getting wiped out as a result of a job loss will keep you long enough in the game to keep trying to get other ones until luck shines on you. And the way to make sure you are still in the game regardless of a job loss is to create your margin of safety. It will protect you from things you never expected would happen. The fact that you can't completely predict the future should always give you this idea to create an avenue where you can endure long enough until everything falls in your favor.

References Anger and tears from shocked Credit Suisse staff after historic UBS takeover

More from iska

Invest in something cared about, and there can't be a loss

The quickest way to have less money is to spend it to show people how much you have

Controlling your time is the biggest dividend money pays

The Surprising Role Luck Plays in Building and Sustaining Wealth

LPUD: It's that time of the month again!

How the Spoon Theory can Change Your Money Mindset

Fear-setting: The Surprising Connection Between Fear and Wealth

Use pain to master money and prepare for financial crises

The Key to Thriving in Financial Turmoil and Uncertainty: Having a Solid Plan

The Surprising Power of Planning for a Healthy Account Balance Today

Don't Wait for Tomorrow: Start Making Money Today and Secure Your Financial Future!

How the community can help LeoGlossary Authority with Manual Backlink Auditing

Did you know LeoGlossary helps you Optimize Anchor Texts?

How using Leothreads to share posts with LeoGlossary as backlinks helps with ranking

Building High-Quality Backlinks with Leoglossay

Goldman Sachs taught me why prioritizing long-term goals over short-term profits leads to greater success

Posted Using LeoFinance Beta