Well, unless you’ve been living in a cave for the last couple of weeks, you probably know that the Writers Guild of America is striking against film and TV producers. Reading coverage of the strike, my first thought was, “Oh crap, more reality shows on TV.”
My second thought was that there were a few personal financial nuggets buried in all the talk.
1. Keep an Emergency Fund
I don’t mean that $1,000 in your savings account. Keep at least 3 months of your total living expenses in a liquid account. I personally would recommend 6 months. You never know when your guild is going to go on strike (or your employer downsizes, or you have to move without a guaranteed job, or…) I know, this is pretty common advice, but that is because it is so important and so neglected by so many people!
2. Develop Multiple Streams of Income
For many of the striking writers, like many of us, the loss of a steady paycheck from writing their show is a major financial blow. Even 6 months of savings can be inadequate if you have a long stretch between jobs.
There are some writers, however, who won’t take nearly as much of a financial hit. Why not? Because they will continue to make residuals from movies and shows they wrote before. Insurance agents are very familiar with residuals as well.
Regardles of what field you work in, try to invest time and money in efforts that will make you money apart from your paycheck. Consider starting a side business doing something that interests you, writing a story or book if you are a wordsmith, or investing in real estate either to fix and sell or to rent out. Learning to invest in the stock market more effectively or even getting a second job on the side are other ways to reduce your dependence on the almighty paycheck.
Notice that generally all of the above options are not mutually exclusive, no need to just do one!
3. Plan for Contingencies
It’s easy, particularly when you’re young, to think that nothing bad can happen to you. Insurance is for older people or those with lots of debt and dependents. Think again.
Losing your paycheck due to a strike or layoff is only one of the things that can put you in financial trouble. Illness or injury, on the job or at home, can do the same thing. Protect yourself with insurance.
Life insurance, health insurance, disability insurance, and even supplemental insurance like AFLAC should all be considered. For a young person, the cost of most insurance is so low that there is little reason not to have at least some coverage.
So while you may be sad that this season of Heroes is probably ending early due to the strike, at least here’s a few finance tips as a silver lining, right?
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