- It’s easy to get tempted and take loans in tough situations, but remember that this can dent your money life
- Shanbhag had to quit her job in a hurry even amid a slowdown. She rode out the tough phase by sticking to a budget and steering clear of loans
About three weeks ago, 23-year-old, Mumbai-based Manasi Shanbhag lost sleep over a conversation she had with her father. Her father’s company which is based out of Bengaluru laid off over 50 employees to cut costs, and he seemed shaken himself. “We did budget cuts and brought down the layoff number from 75 to 56 by relocating some employees to other offices. But it makes it hard to sleep knowing I had to be a part of that decision making," he told Shanbhag.
That night, Shanbhag did some research on Google to understand the depth of the slowdown. What the internet threw at her left her thinking if her job was at stake as well. A week after this conversation, one of Shanbhag’s colleagues was fired. “It hits you hard when the desk right next to you gets empty. That colleague wasn’t the only one. There were eight other people who were asked to leave in the next few days," said Shanbhag, a business development representative with a multinational company. Soon, a conversation with her seniors gave her a sense that she may be next in line. “I felt disposable in the company and so I chose to quit," she said.
Time to reflect
Quitting at a time when job prospects look bleak across industries may seem like an impulsive decision but for Shanbhag, the situation was delicate. Had she not quit, the company may have pushed her to. In any case, job loss and salary delays are inevitable in a slowing economy. “A job loss could be traumatic for someone who is in her first job but the good news is, such a person may not have too many commitments and the setback may not be too much. This would also help them realize the importance of having a plan B going forward," said Shweta Jain, chief executive officer and founder, Investography, a financial planning firm.
Shanbhag did panic initially at the thought of being without a job, but what helped her ride out the phase was sticking to a budget. “Before I left, I checked my finances. I knew that I could survive in the city for three months without a job," said Shanbhag, who lives on her own, and got into a new job recently.
Jain said it’s very important to keep a tab on one’s finances and try to live within a budget. “The millennial generation tends to shop away its worries, binge eat and binge watch. You should take this time to reflect and set things right—be it your finances, health or further skill development," said Jain.
When you have just started working, you can think of an alternate career for additional source of income which you could fall back on in case of an untoward event such as a job loss. Try to complement your income with some side jobs or try to monetize your hobbies, said Jain.
If all this seems too far-fetched because you already have a full-time job, then work on upskilling yourself so you don’t become disposable. Given that you’re new into the job, you may have more time in hand to take up some courses that help you upskill. In the long term, this can help you grow in your current career.
Say no to credit
In the few months that Shanbhag has lived in Mumbai, she’s had no savings by the month-end because her fixed expenses are quite high. “Even in double occupancy, the rent is much higher than in other metropolitan cities," she said.
In a situation like this, it’s easy to get tempted and take loans but know that this can dent your money life. “Don’t fuel your lifestyle spends through loans. Instead, cut down on your expenses and lower your standard of living, if need be. In case your salary doesn’t get credited for long or finding a new job takes a while, the interest on loans will keep mounting, leaving you trapped in debt," said Jain.
Shanbhag, though, was ready to cut costs, wherever possible. She also bagged another job within two weeks of quitting her first job. But not everybody gets lucky, especially because the HR processes for hiring take time in most companies.
The best way to battle a slowdown is to keep your expectations grounded, lower your expenses, invest in your career by constantly upskilling and build an emergency corpus. If things take an unexpected turn, the emergency fund could come to your rescue.
0 Comments