In the wake of Reliance Communications (RCom) expected to cut a number jobs due to its plan to shut major parts of its wireless business in the coming 30 days, many employees have begun to fear about the possibility of layoff without enough/prior notice. What if such a situation comes to you? Are you financially prepared to receive a pink slip? Can you survive a layoff without tears?
Losing a job could be a nightmare. It is not always easy to find the right replacement quickly. And if the situation is same across your sector, it would get even more difficult to find a new job. Sometimes, one may even have to compromise with the CTC, lesser than the previous package. Meanwhile, respective families may have to suffer financial distress, if there is no planning in place.
Why let your family suffer financially when you have to face a layoff? Employee layoff or cost-cutting may not be in your control. But you can control your personal finance management and put your finances in order to be able to survive any situation, without facing financial distress. Read through this ArthaYantra post to learn how you can be financially safe at any given point in life.
- Build an emergency fund: Build a contingency corpus that is equal to 6 month’s expenses. If you see the job market shaky, add another six months of loan EMIs.
- Plan for an independent health insurance: Even if you have a health insurance offered by your employer, get another independent health insurance because you will no longer be able to avail the insurance benefits if you get laid off.
- Slash all your expenses: The very first step to take is to re-frame household budget to slash expenses. Prioritize your expenses. Give importance to payments like insurance premiums, investments, loan EMIs, utility expenses, etc.
- Do not dip your bank savings: In case of insufficient funds, do not disturb your bank savings. Instead, sell some assets or redeem investments like mutual fund units. Never dip into your retirement savings or avail personal loans or maximize credit cards.
As the saying goes, prevention is always better than cure. Instead of hurrying or taking measures to the neck of the moment, plan to put your finances in order by getting a thorough financial planning done. It helps to be prepared to face any situation in life, without financial distress. For professional advice, approach ArthaYantra – world’s only full-service robot advisory.