5 essential strategies to be financially ready for a job loss

financialexpress.com:

Job loss has become a concern for many salaried individuals — both young and mid-age professionals. The recent job cuts by global giants are some of primary signals of the worsening job market worldwide. Uncertain economic situations do lead to job losses, a fact which can’t be denied. It is already happening and in such a situation, it is important to be financially ready for any financially uncertainty.

The only answer to this is preparation in advance to sustain financially while you are jobless. It is always wise to dig the well before you feel thirsty. In fact, the old saying – Precaution is better than cure – suitably explains that you need to be financially prepared in the event of a job loss.

Here are the 5 ways to be financially ready for a job loss.

It’s a no brainer. Just do some basics by looking at your expenses and expenditure behaviour. Waste no time in figuring out expenses which add no values and can be easily done away with. It’s the need of the hour. You may have no choice as difficult times demand tough measures. Such an exercise would help you save a bit more bucks. And the cumulative effect of such savings may turn into a sizable corpus. It’s worth reminding that every penny saved is a penny earned.

Adhil Shetty, CEO, Bankbazaar.com, says, “The first step is to assess your financial situation. This includes understanding your income, expenses, and assets. Once you have a good understanding of your financial situation, you can start to make a plan for how to manage your money.”

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As a top priority, focus on building an emergency corpus, if you have none or have inadequate sums. The amount should be