Despite the rising number of people in employment, only 29 percent of Americans are financially healthy, the latest report from the Financial Health Network found. While most of the attention is focused on the financial repercussions of poor financial health, it turns out that your financial life could also be dictating your career choices. A study by the Society in Human Resource Management showed that 83 percent of HR managers believe that personal finance issues impact the quality of employee performance, while a rising number of recruiters are adding credit and financial checks to their background check process. Your financial health does not just impact your chances of recruitment either: its effects are felt throughout your career - from your chances of progression to the prospect of switching careers later on.
It Can Determine Your Training Opportunities & Financing
Your financial health can determine your chances of career development and, in turn, career progression. Many adults head back to school while maintaining a full-time job. The cost of heading back to school as a mature student can not only include the high tuition fees, but may also include possible interest charges from either student or personal loans. Even some of the best personal loans at Crediful.com will show that many lenders ask for good credit scores and the interest rates are dependent on your financial health.
Having a healthy financial life means you may have easier access to financing and lower interest charges. In addition, the chances of relying on student and private loans are reduced, since you are may be able to fund career training opportunities with your savings. It is about more than having the money to pursue career development, however. Having the right planning and budgeting skills to keep your finances in shape means you are better equipped to plan and budget for career development plans and their accompanying costs.
Better Personal Finance Skills Allows For Career Exploration
Having a healthy financial life would also suggest that you are not living paycheck to paycheck or drowning in debt, as millions of Americans currently are. This relieves the pressure of having to stay in jobs you dislike or have grown out of. Almost 60 percent of Americans would choose a job they loved over a job they hate, even if it meant a 50 percent pay cut.
Having savings means you would have a safety net to explore your passion and even retrain for a change in career later in life. While it may not mean you can remain unemployed forever, an emergency fund is intended to cover at least three months of your expenses and gives you some leeway.
You Can Play Hardball In Interview Negotiations
Research has shown that man job seekers are afraid to speak up in their interviews, particularly when it comes to negotiating their pay and benefits. In fact, 43 percent do not negotiate their salaries due to fear of the discussion taking a left turn. However, heading into a job interview or salary review meeting with better control of your finances gives you an upper hand when it comes to negotiating. If personal finance is done right, you may have amassed emergency and other savings, giving you a choice and some room on how much of a pay cut (from your desired amount) you are willing to accept. It means you are in a stronger bargaining position, and this can make all the difference to the job you accept, the terms you work under and just how much you are paid.
Your financial health can even determine your path to entrepreneurship. Workers that go on to launch their own businesses often fund their startups with a mixture of business loans and savings. Healthy personal finance habits can help with both your saving habits and your credit score - key when seeking a business loan. While your personal and professional life may seem worlds apart, the truth is that your financial health plays a recurring role throughout your career - from your initial job search right up to the post-career portion of your life.