I have recently met a person who has chosen the path of volunteering and social work as a professional life .
That person has taken his talents and skills and has decided to abandon several more lucrative opportunities to participate in a social work program full of challenges that will not, precisely, make him earn a lot of money.
Therefore, in today’s article, we will see what we can do to offer you some useful financial advice and that are also valid for anyone else who decides to follow in their footsteps.
For starters, your income will be low for a good period of time and, most likely, your position will improve very slowly over time.
This person has an enormous spiritual strength to spend their days helping those who cannot help themselves but keeping in mind that it will also be a great financial challenge and must make a series of difficult decisions.
What can you do to ensure your financial stability?
Here are my suggestions and I would love to see more in the comments.
Create an emergency fund
In a professional field where job opportunities are often varying quite a lot, many people who are dedicated to this are changing from job to job and an emergency fund is vital to save the bad times.
It’s very simple, just put a certain amount of money in a savings account or fixed-term deposit and then transfer the money when necessary. Like when your car breaks down or something more disastrous happens.
Many volunteer workers know the benefits of doing this but they misapply it. They maintain an account at a bank in their city or at the bank branch where they do their work.
A much better approach is to find a good savings account or fixed-term deposit, which provides a good return. For a person with such variable incomes, what they can earn with the returns on their savings is essential.
Save for retirement
At some point, a social worker, like everyone else, will have to face old age and retirement. And being a person of variable income also needs some flexibility in retirement savings .
An index fund is a great option and can function as a perfect retirement vehicle. In a nutshell, an index fund allows anyone to invest in the stock market in the long term and enjoy an average return of 8% year-over-year.
It is the best vehicle to grow savings as quickly as possible and thus ensure you have an amount of money saved for retirement.
How can you start? Many financial institutions offer index funds and, although they are somewhat more expensive in commissions than others that you could find yourself, to begin with and while learning an index fund from your usual bank is enough. In addition the transfers are free so you can change the background whenever you want.
Cultivate a strong network of friends and family
If you are thinking about a life of social work and volunteering, you will soon realize that it is very likely that you need the support of people during great periods of your life.
Talk to friends and family and make sure they support you in this election. Not in an economic sense but in the sense that they understand the choice you are making and can help you when you need it.
On the other hand, if someone you know is considering making that choice, offer this kind of help. Make it clear that you can help them by leaving a bed or being able to eat at home whenever you need it.
These people are making a very difficult choice, a choice that will make the world something better, so it is a good idea to show them as much support as possible.
Learn to live in a saving way
If the income is going to be very variable, the expenses must be minimal. The first is something as basic as learning to cook. Eating out is over, beyond leisure time. It is the easiest way to save money.
It is also a good idea to leave the pride out and learn to buy everything white or second-hand brand. In this lifestyle you have to focus a lot on saving expenses .