Employment, or working for a living, can be a double-edged sword.

Sure, employment is a great way to achieve financial security and independence. It allows you to pay your bills, afford the things you need and want, and build a nest egg for the future. But let’s be honest, it also comes with challenges you might not expect when you’re first starting out.

Let’s explore these employment lessons below:

1. Startup costs can be a hurdle

You start a job to earn money, but you also need money upfront for things like professional work clothes, reliable transportation to get to and from work, and maybe even some basic office supplies. It can feel ironic that you invest your own money just to be able to make more money at your new job.

2. The Monday blues can hit hard

If you’re not passionate about your job and employment, Mondays can feel especially dreadful. It’s tough to be motivated and energised to tackle a long week of tasks you don’t enjoy, even if the work itself is relatively easy. This can affect your overall mood and productivity.

3. Making ends meet can be a constant juggling act

You work diligently every day, putting in your hours and effort. But depending on your employment salary, your paycheck might only come once a month.

This can make it challenging to budget effectively and ensure you have enough money to cover all your expenses throughout the entire month. It might require some creativity and financial planning to stretch your paycheck as far as possible.

4. Payday loans can become a trap

If you’re not careful with your money management and overspend throughout the month, you might find yourself broke before your next paycheck arrives. It can be tempting to resort to payday loans or credit cards to cover your essential expenses until payday.

However, these options often come with high interest rates and fees, which can trap you in a cycle of debt and make it even harder to manage your finances in the long run.

5. Your well-being is paramount

When you’re desperate for a job and trying to get your foot in the door, you might downplay the importance of work-life balance and readily agree to work under pressure on your resume. But a job that constantly stresses you out and takes a toll on your mental health might not be worth it in the long run.

There are some things money can’t buy, like peace of mind, good health, and strong relationships. It’s important to get employment that offers a healthy work-life balance and doesn’t come at the expense of your well-being.

6. The side hustle can be a lifesaver

When your income from your main job isn’t enough to cover your bills and your desired lifestyle, you might find yourself brainstorming ways to make more money on the side.

This could involve starting a freelance business, taking on a part-time gig, or exploring other avenues to supplement your income.

The extra income can help you achieve your financial goals faster, reduce financial stress, and give you more breathing room in your budget.

7. Health truly is wealth

One unexpected illness or injury can wipe out your savings quickly. Medical bills and medications can be very expensive, and even basic health insurance might not cover everything. This makes staying healthy even more important.

Taking preventative measures like eating healthy, getting regular exercise, and getting enough sleep can help you avoid costly health problems down the road.

8. Relaxation is key to avoiding burnout

If you don’t take breaks and prioritise relaxation, you might get sick, which can be a financial burden due to missed workdays and medical bills.

It’s important to schedule time for vacations, hobbies, and activities that help you de-stress and recharge. A well-rested and relaxed employee is a more productive and resilient employee in the long run.

9. Sometimes privacy is necessary

Depending on your social circle and financial situation, you might try to hide the fact that you have a job, especially if people around you constantly ask for money.

You might avoid them to escape the pressure to lend them money or give financial handouts. This can be a way to protect your financial security and avoid feeling taken advantage of.

10. Appreciation for your parents grows

Seeing how quickly money comes and goes can make you appreciate your parents more. You realise it wasn’t easy for them to provide for you when you were younger.

They likely had to make sacrifices and manage their finances carefully to make ends meet. This newfound understanding can bring you closer to your parents and give you greater respect for their hard work.

Even though having employment has its challenges, it doesn’t mean being unemployed is better. Life can be tough, but you can learn to develop strong financial habits, find a job that aligns with your values, and prioritise your well-being to navigate the complexities of working life.

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Many people looking for safe places to invest their money, like money market funds. These funds are like pools of money from many investors that are used to buy very safe short-term loans. This means you get your money back quickly, and there’s a low chance of losing it. 

The money market fund also pays you a bit of interest on your money, but not as much as some other investments. Before you decide to put your money in a money market fund, there are some things you should think about to make sure it’s a good fit for you.

Consider these factors before investing in money market funds

1. What are you hoping to achieve, and how much risk are you okay with?

Before choosing a money market fund, think about your goals. Are you looking to keep your money safe (capital preservation), easily access it when needed (liquidity), or earn a small amount of interest (modest return)? Knowing your goals will help you pick the best fund for you.

Money market funds are generally considered safe, but there’s still a small chance of losing money. Consider how much risk you’re comfortable with.

2. Fees and expenses

Like any investment, money market funds have fees. These fees are usually shown as a percentage called the expense ratio. This covers things like management fees, administration costs, and other expenses.

Shop around and compare expense ratios between different funds. Lower fees mean you get to keep more of your returns. Also, watch out for any additional fees, like charges for buying or selling shares, which can also reduce your returns.

3. What the fund buys and how good it is

Money market funds buy short-term loans from different sources, like the government, businesses, and banks. These loans are called Treasury bills, commercial paper, and certificates of deposit (CDs).

It’s important to see what kind of loans the fund is buying and how good they are. Look for funds that buy high-quality, easy-to-sell loans from reliable sources. Avoid funds that buy too many risky or hard-to-sell loans, as this makes the fund riskier.

4. How much interest you earn and how the fund has done in the past

Money market funds typically don’t pay as much interest as other investments like stocks or bonds, but it’s still a good idea to compare interest rates between different funds. See how the fund has done in the past to get an idea of its performance.

Remember, past performance doesn’t guarantee future results, but it can give you a clue about how the fund has done before.

5. The risk of not getting your money back

Even though money market funds invest in safe loans, there’s still a small chance that the borrower might not be able to repay the loan. This is called credit risk.

To minimise this risk, look for funds that buy loans from very creditworthy borrowers and consider funds with high ratings from credit rating agencies like Standard & Poor’s or Moody’s.

6. How easy it is to get your money out

One of the benefits of money market funds is that you can easily get your money back when you need it. However, some funds make it easier than others.

Find out about the fund’s rules for getting your money out and any minimum amount you need to invest. Make sure the fund allows you to access your money as easily as you need to.

7. How safe is the fund, and are the rules fair?

There are rules in place to protect investors and keep money market funds stable. Stay informed about any changes to these rules that might affect the funds. Choose a fund that follows good business practices and the established rules.

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