For instance, we may incur an injury that prevents us from going to work for a prolonged period, six months, say. If we have no savings in the bank, we may run into financial problems because without work, no more money will be coming in. If, on the other hand, we had been saving a few hundred dollars per month before the injury, that money would come in handy now.
With that case reserve, we’ll be able to weather the financial storm, so to speak till we return to work and draw an income once again.
I may be accused of oversimplification here of course. One, there are all sorts of ways to save and invest in order for our hard earned money to maintain value and keep growing whether we work or not. Two, one’s career may hit all sorts of bumps, many unimaginable and much more in number than I have listed just now. Plus, young people won’t hear what I have to say about savings – for all that I know, they’d like to ask for me to give them more money than they can spend first (then we can start talking about savings).
So therefore, let’s take a collective retreat and be perfectly clear about (and in agreement with) one thing. And that is, to hit a bump is to take a jolt, suffer a temporary setback and slow down in speed, whatever we’re doing.
Here are media examples of bumps in the road, both literally and otherwise:
1. HSBC’s closely-watched emerging market index indicates that manufacturing growth will slow sharply following a record first quarter.
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