Job Loss: How To Survive It? 8 Tips For You

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Wipro, Cognizant, Infosys and many major tech companies are on the path of giving lay offs to the under-performers. The job loss is not restricted to just IT sector. Engineering and Manufacturing companies like L&T, bank services like HDFC, e-commerce firms like Snapdeal are cutting jobs in India.

So the safety of your job is a major concern in this scenario. It is better to have a good financial plan to survive the job loss and decrease in pay.

Budget

Have a look at your budget. By swiping our card in petrol pumps, shopping malls and hotels you may don't know how much you are spending each month. You will be living according to your salary. Start tracking your spending before doing anything else. You can know where your money is going, and this will helps you to unplug the un necessary expenses. You should cut down your lifestyle expenses for a few months. Be serious about eating outs and entertainment expenses.

Use cash

After demonetization, India is driving for a cashless economy. But it is better to use physical cash this time. Because when you use debit or credit cards, you may not get the actual track of spending. We will pay high when using digital payments. When you are paying using physical currency, you won't spend it for un necessary things. Avoid non-cash payments when you are in between jobs.

No luxuries

It is not certain that how long it will be until you have a steady income again. Be cautious with your spending. May your husband or wife has lost the job so that the income will be coming, but the lesser amount. Avoid buying any big ticket item during a job loss. This is not a time to buy luxuries.

Don't withdraw pension accounts

When your cash flow dries up, you may be tempted to withdraw your retirement account. You should think twice before cashing out part of your savings when you are unemployed or in the notice period.

Govt benefits

You can claim any advantage that you might be entitled to, like Unemployed Allowance. If you're entitled to benefits based on your income, you might also be able to get help with paying the interest on your mortgage through the government's Support for Mortgage Interest.

Don't pay off debts

Don't pay off your debt now. Clients often are eager to pay off their debts and close their accounts at the time of job loss. When you don't have a job your ability to get lines of credit will be compromised. Don't try to pay off all your debts using the amount left with.

Lower interest loans

What to do with your EMIs? If you are unable to pay your EMI, contact your lender and explain your current financial situation. Lenders may offer to restructure of the whole loan or rescheduling of amortization repayment. Request for a lower interest rate as well. If the lender is not co-operating, switch the loan to another lender who offers a better deal on interest rate and tenure.

Other sources of money

When you are searching for a job, try to generate an alternate income. If you are a writer, or artist do freelance work. You can take loans against your assets, like a Fixed Deposit, Gold, etc.

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Read more about: job, planning
Story first published: Thursday, May 25, 2017, 12:10 [IST]
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