How to Secure Yourself Financially Against Job Loss?

In uncertain times like these, a job loss can’t be ruled out. Being pink-slipped can take a toll on your emotional and financial well-being and bagging a new job in pressing times like the one we are witnessing now can be a tough nut to crack. Read on to know some effective ways to financially secure yourself, in case you are laid off.

For a soft landing in case of a job loss, it’s crucial to have an emergency corpus to take care of your expenses. This corpus can help you tide the crisis and meet essential commitments with ease. You can build this corpus by parking money in a mix of fixed-return and market-linked instruments.The emergency corpus should be equivalent to at least six to eight months of monthly expenses and make sure the money is easily accessible when required. As soon as you bag a new job, ensure to replenish it once again.

This is another way to financially secure yourself in the event of a job loss. Getting rid of discretionary expenses ensures you aren’t financially stretched. Create a budget and find out the unnecessary costs to weed them out.The savings you make by cutting discretionary expenses not only beefs up your finances but also instils financial discipline, essential for long-term wealth creation.

Health contingencies cropping up when you are without a job can deplete your savings and emergency corpus in no time and be a major roadblock in addressing other commitments such as paying utility bills, EMIs, school fees, rent, etc.Things can, however, be different with a health insurance plan. It not only prevents out-of-pocket expenses but also ensures funds are not a roadblock in receiving the best treatment. Having an adequate health cover can prevent burning a big hole in your pocket.You can compare different health plans and choose the one that best fits in your scheme of things. A family floater health plan offers coverage to all members of the family in a cost-effective manner.

As said, it’s never easy to bag the job of your liking when you are pink-slipped. You may need to compromise on several aspects including CTC and other benefits in your new job when you are without one. However, things can be different if you upskill and have a robust professional network.Upskilling can give you a leg-up in your career and help you stay relevant in the job market. In case you feel you might lose your job, start circulating your resume within your network at the earliest. To sum up Job losses are a harsh reality of the modern-day. Financial discipline, coupled with prudent investment, can help you tide the crisis with ease.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.