Worried For Job Loss? Plan Your Future Finances To Counter Stress
Finding a job has been an uphill task for Indian employees and retaining your job has become all the more important. Mass layoffs could be a nightmare for employees; more so when are not at fault.
In case of a company shutting down, financial crunch during lack of employment may cause stress and depression. New jobs have been hard to come by in the Indian market, and managing money becomes all the more important during crunch times.
Emergency coinage: It is always important to save a little money while you earn. No matter if you have a layoff prospect or not, make sure you have a corpus equal to six months’ expenses at your gathering. If you have a slight hint of the company shutting down, keep aside a five to six months of loan EMIs to counter any emergency.
Cut your expenses and plan ahead: If you suspect getting a pink slip in near future, cut down on unnecessary expenses so you can spend on important needs. This is a priority step and is important to re-plan your spending and budget depending on your savings and emergency funds. You can use emergency funds. Keep your emergency funds for utility expenses like insurance premium, EMIs, investments and utility expenses.
Health insurance: This one is a must. You save all your life and all the savings can go away in a flash in case of a medical emergency. Don’t be too sure about your company giving you a good and family cover. Treatment of a family member in case of no family cover will be an uphill task to manage. A good health cover for your family will save your head during crisis.
Fall back on family: Incase of insufficient funds to counter expenses, drop down into your investments. Take out funds from equity market, mutual funds and other investments. Sell some assets and take some loan against gold or property. However, keep your retirement savings intact and avoid taking personal loans which come at a very high interest rate. Also avoid maximising credit cards which can take off your hard earned money with a high interest rate.
Stop investments and reschedule EMIs: Loan EMIs are the most troublesome financial obligations to fulfill if you don’t have a regular income along with mutual fund SIPs and insurance premium. Contact your insurer to find out if the periodicity of payment can be altered. Consider loan protection plans to bail you out during emergencies. Request banks for temporarily shutting down EMIs or reduce the installment which can help you suffice.
