Keeping your financial skills up-to-date is an important aspect of being successful in many areas of your life; however, you may not realize that your career is one of those areas. In fact, there are several ways in which your financial skills impact your career.
The following information details certain financial decisions that can impact your ability to get and keep a job, so that you can make the most of your time and money to better your career.
Getting a Job
Many people have heard rumors about employers completing a credit check on potential employees, but are not sure exactly how credit history can impact job prospects. Employers cannot actually check your credit score, but they might check your credit report.
“In most states, employers are able to check a potential or current employee’s credit report, which lists information such as balances on your loans and credit accounts, late payments, and debt collections,” according to Lisa Gerstner from Kiplinger.com.
Not all employers will check your credit report, but it definitely pays to be aware of the details it contains, just in case. The type of position that you’re applying for could determine the likelihood of your credit report being checked.
“Employers are usually most interested in the credit backgrounds of applicants who will handle finances, hold an executive-level position or have access to other employees’ confidential information (such as human-resources professionals),” states Gerstner.
If you think that your credit report may be checked during an interview process, you need to be one step ahead of your employer. Make sure you know your credit history and can explain any parts of your credit report that could make you look bad. Many employers are only looking for a general idea of how trustworthy and responsible you are when checking your credit history, so if you are up front about the contents of your report, you shouldn’t have anything to worry about.
Keeping Your Job
You have probably heard the phrase, “investing in yourself,” but likely weren’t sure exactly what it entailed. Many people’s desire to save for retirement can actually end up hurting them financially in the long run, if it leads them to forgo all opportunities where they could have invested in themselves.
Don’t be afraid to spend a little money to further your career. Instead, think of your career as any other type of investment, like a stock, where you have to spend money to make more money. Not all career investments end up paying off in the end, so be sure to take calculated costs and not spend indiscriminately, hoping that your boss ends up wanting to pay you more or promote you.
It’s important to ask yourself a few questions before making a decision about which investment opportunities are best for your career.
“For example, what performance improvements and career advancement outcomes do you expect, and when will you be able to see favorable financial results and lifestyle changes as a result of your investment?” asks Glen Llopis, Forbes Contributor.
Many people don’t spend money advancing their careers because they falsely assume that employers would provide career training if they wished employees to have it. In the post-crisis economy, that is no longer the case. Employers have been forced to cut costs wherever they can, and providing training to employees is not a priority. This is why it pays to take charge of your own career management.
“If possible, invest in a career coach to increase your commitment levels and hold yourself accountable,” states Llopis. “Today’s competitive landscape requires you to stay on track by investing in someone that can provide you with the tools and perspective to keep you focused.”