The last two weeks have been bad news for technicians. First, Twitter under new boss Elon Musk handed out pink slips to thousands of employees. Then came the Meta layoffs. In India too, the country’s largest information technology company, Byju, has announced job cuts. And according to reports, there’s more to come in the coming months. Even though such situations cannot be avoided, however, we can further reduce stress by being financially prepared to fight such struggles. Here’s how:
Emergency fund:
It is always prudent to keep 6 months to a year of income aside as an emergency fund. In case you face a job cut, you can at least count on this money to survive the next few months until you find another job.
Ideally, money should be kept somewhere accessible, such as cash or savings accounts, so that it can be easily withdrawn when needed.
Health insurance:
You should never be completely dependent on company health insurance, and one of the main reasons for this is that in the event of a job loss, you are no longer a beneficiary of the scheme. So if there is a health emergency when you are out of work, you will have to foot the bill out of pocket, which will further increase your financial stress.
Therefore, it is always advisable to opt for personal health insurance for you and your family.
Budgeting:
Since financial resources are already stretched, it is extremely essential that we take a closer look at our expenses and revise the monthly budget.
There are a few things that cannot be avoided like food, utility bills, EMIs, etc. Follow them, then decide your monthly expenses accordingly.
Reduce optional expenses:
When there is regular income, you should always put money aside for savings, recreational activities and also optional expenses like eating out, going to movies, subscribing to magazines, etc. But, you should try to eliminate these expenses completely during the current period. emergency. For now, you should also stop saving and investing.
Avoid new debt
The one thing you should avoid at all costs right now is incurring debt, such as a personal loan or a loan on your credit card. These loans may seem like a relatively easy way out of short-term money problems, but their interest rate is extremely high.
Catch all of them Economic news, Market News, recent news Events and Recent news Updates on Live Mint. Download the Mint news app to get daily market updates.