Even though the economy is growing, job loss has become a common problem in India due to various reasons like automation, cost-cutting, redundancies after a merger or acquisition and so on. According to the report, between October 2016 and October 2017, 90 Lakh people have lost their jobs In India. Employees in the IT sector have experienced more layoffs when compared to employees in other industries.
If you have a job, you have everything. But at the same time, it is very difficult to cope with a layoff. If you are in the fear of losing your job, it is very important to start thinking on how to secure your future. You should be financially prepared to face a job loss. In this blog, we will discuss how to overcome the fear of losing a job.
The main intention of building an emergency fund is to provide financial security during an emergency situation like a layoff. If you are still single, you should have three months worth of living expenses as an emergency fund. If you are married, you should save at least 6 months of living expenses for rainy days in this fund. You can save money for rainy days either in liquid funds or fixed deposits.
Invest in yourself and improve skills to overcome the fear of losing a job. One of the important factors considered by employees while hiring is a relevant skill set.
In the greed of making quick money, do not fall for Ponzi schemes which claim to offer high returns, in a very short time. Many people lose money by falling for such Ponzi schemes.
If you are not sure on the security of your job in the current company where you are working, you must avoid making high-value purchases. If you make high-value purchases by opting for EMIs, it will be a burden in case you lose your job.
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It is very important to avail a health insurance plan as medical expenses are increasing each day. If you just depend on the health insurance provided by your employer, you will be left uninsured in case you lose your job. So, make sure to avail health insurance as a backup, in case you fear losing a job.
If you are investing money in the stock market, make sure not to invest in stocks of small companies as they are extremely volatile. It is advisable to invest in stocks of large-cap companies as they are less risky.
Do not increase borrowings if you are not sure on the safety of your current job. Before borrowing you must keep one thing in mind. You have to repay loans with interest. In case you fail to repay the loan or credit card bills, your credit score is badly affected.
If you are in the fear of losing a job, list yourself on a job site as it will help find a suitable job. But, make sure not to get cheated by fake job sites.
Your network is your net worth. It is very important to improve your network if you are looking for a job. You can improve your professional network on sites like LinkedIn.