How to manage finances to survive a job crisis
The recent layoffs, especially in the IT and telecom sectors in India, are a harsh reminder for employees to keep a check on their finances and make sure to have enough funds to overcome job crisis.
Here are some tips to deal with a job loss and keep yourself financially secure in the future.
Keep an emergency fund ready to manage expenses till you get a new job. For example, you can find out how much of emergency cash you may need for household expenses of three to six months.
Prepare a household budget which will allow you to enjoy a reasonable way of living and at the same time help you achieve your long-term financial goals.
Prepare, analyse and keep a check on your personal budget for effective financial planning.
As much as possible, stop making new purchases from your credit card as credit card debt can create huge financial problems if not managed well.
Prepare a possible plan to pay off the pending amount of the credit card or loans if any, in over one to three months to avoid paying high interest.
Losing a job has a damaging effect on the physical and mental health. However, proper planning, smart management and a balanced approach can help you overcome the situation and become emotionally stronger and financially better in life.