The world’s leading companies are laying off employees, keep these 5 things in mind to avoid financial crisis
Companies have frozen hiring
According to reports, many companies may start layoffs in the coming months. Many companies have already frozen hiring. This condition can happen to anyone. Hence an employee should be prepared financially in advance. Let us know what you have to do.
Emergency Fund
It is always suggested to the employees to maintain an emergency fund of six months to one year. Suppose you lose your job, then you can depend on this money for a few months. In this time you can easily find another job. This emergency fund should be kept in places like savings accounts, so that it can be withdrawn immediately when needed.
Health Insurance
An employee should not depend on the health insurance provided by the company. There is a big reason behind this. Suppose you lose your job, then you will not be able to take advantage of this insurance. In such a situation, if any health emergency comes, you will have to spend money from your pocket and this can spoil your financial condition. Hence it is always advisable to have a personal health insurance for yourself and your family.
Avoid new debt
After leaving the job, you must avoid one thing. You have to avoid taking loan at such a time. People often take loans on personal loans or credit cards. It seems easy to take this loan to overcome the problem related to money in the short term. But remember that the interest rate on these is very high.
Reduce savings and investments (Reduce optional expenses)
When you have regular income, you tend to spend a lot of money in savings and investments. Every month some money may be auto-debited from your bank accounts into different investment instruments. But after leaving the job, you will not be able to afford it. In such a situation, you can stop contributing to your savings or investments.
Budgeting
Our regular income stops as soon as we leave the job. That is why it is very important that you reduce your monthly expenses. You can cut down on expenses like having dinner outside, watching a movie in the hall. Make a budget and go according to it. Take care of your EMI and utility bills etc. in this budget.
