One of your most valuable assets is your ability to work for a living.   Protect your job like you would any other asset.  To enhance your earning ability, consider the following ideas:

• Complete the necessary formal education in order to qualify for the maximum income level in the career of your choice.
  
  
• Use between two percent to four percent of your annual earned income to obtain additional education and training. Continuing education will enable you to stay abreast of changes in your field and to develop new skills that will qualify you for advancement.
  
  
• Take advantage of employer-provided education funding to pay for undergraduate education and continuing education.
  
  
• All businesses are ultimately people oriented.  In addition to the required skills of your job, always seek to improve your writing, speaking, selling, negotiating, and interpersonal skills.  You will have a marked advantage if you can communicate effectively.
  
  
• To enhance your value as an employee, as soon as you have mastered your existing responsibilities request new ones. Give your job your best effort and seek new challenges as soon as you are ready.
  
  
• If your job responsibilities or income have reached a plateau, consider seeking new employment in the same line of work or pursue a new career.
  
  
• Assuming you are satisfied with your current position, generally consider a new job only if you can obtain a 10 percent increase in income.  In evaluating whether you should accept a new job offer, however, the following factors should be weighed: (1) the number of years until you retire, (2) your current salary versus the proposed new salary, (3) the rate at which your current salary will grow versus the rate of growth of the new salary, (4) the value of employee benefit plans at your existing job versus those at the new job, and (5) the differences in the costs of living at the existing and new places of work.  Theoretically, you could accept a lower paying job and end up with more money over time if your employer grants you larger and more frequent pay raises, the employee benefits are larger, and/or the cost of living is less.
  
  
• Before you switch jobs, evaluate the impact of your resignation on your current pension benefits.
  
  
• If a change in jobs will require you to sell your home, ask your new employer to buy your home if you are unable to sell it after a reasonable period of time.

Strategies if You Lose Your Job

• Invest severance pay in liquid investments such as a savings or money market account.  Don't pay off debts;  you may need the cash to weather a prolonged period of unemployment.
  
  
• If you have the option to take your severance pay in a lump-sum over a period of months, generally opt for the lump-sum, invest it, and commence earning interest.  However, if your termination occurs around year-end, to avoid a large tax bite, consider receiving your severance in monthly payments over the next year.
  
  
• Redeposit 401(k), 403(b) and pension and profit sharing plan distributions into a rollover IRA account.  This will allow you to avoid immediate taxation and the onerous 10 percent early withdrawal penalty if you are under age 55.  To avoid the mandatory 20% income tax withholding when your employer pays retirement funds directly to you, ask your employer to make payment directly to the trustee or custodian of your IRA.  IRC 72(t)(2)(A)(V)
  
  
• If your employer will allow it, in lieu of withdrawing your pension accounts maintain the funds with your company under their professional management.  Withdraw the funds when you are ready.
  
  
• Request immediate out placement assistance.  Request the use of an office, typewriter, phone, copy machine, and secretary to answer the phone.  Ask your personnel manager for job-hunting help and counseling.  Ask your company to pay for it if they don't have the expertise.
  
  

When seeking new employment consider the following ideas:

• Don't price yourself out of the market.  Be realistic with your expectations.  You may have to take a cut in pay.
  
  
• Expect your job hunt to extend one month for each additional $10,000 you seek in pay.
  
  
• Know just how long you can survive on your severance pay and emergency savings.  The longer the survival period, the longer you can hold out for an acceptable salary.  However, if it will take you years to recoup the savings you've consumed while unemployed, think twice before you reject a lower salary offer.  You can always look for a better paying job after you've found employment.
  
  
• If you are offered a lower paying job negotiate a higher base pay first, then bargain for compensating benefits such as: (1) a one-time signing bonus, (2) additional vacation time, (3) a guaranteed merit increase for one or more years, (4) an accelerated performance review schedule, (5) no load or low-interest home acquisition and personal loans, (6) stock options, (7) life and disability insurance coverage, and (8) company perks such as country club memberships, a company car or plane, financial planning and tax return preparation, health club memberships, legal counseling, reserved parking, and annual physical exams.