Job Loss Or Pay Cut – How To Protect & Manage Your Finance?
Whether it’s a pandemic-induced recession or an unforeseeable change in the job market, individuals are always at the risk of unanticipated unemployment or pay cuts. Although it’s as distressing as it gets, you might not have to feel devastated if you protect and manage your finances efficiently.
Take a look at the tips to help protect and manage your finance conveniently.
How To Protect Your Financial Outlook?
The most recent example that emphasises the importance of proper finance management is the COVID-19-induced large-scale unemployment, job loss and pay cut. Since March 2020, several small industries and start-ups have been at the receiving end of the financial crisis.
Here’s a view of the impact that this pandemic has had on the nation’s employment:
| Salary cuts | 39% |
| Possible job loss | 15% |
| Awaiting a decision | 3% |
| Continuing with the employment | 43% |
As you can see, 43% of the salaried population with pre-determined and pre-emptive financial plans has made it through.
Thus, if you want to manage your finances better, consider following the given tips.
Tip 1 – Do Not Quit Your Job
While companies are likely to lay off employees during financial crises, they tend to retain those who have proven their worth in their respective fields. Therefore, even if you are faced with a pay cut, remember that your employer still wants you in the company. Hence, do not make a hasty decision and quit unless you have a better option.
Tip 2 – Upgrade Your Skills
One way to protect your financial condition and career during such tough situations is to upgrade your skills. Employers dealing with economic crises are likely to retain those employees, albeit with a pay cut, who have something extra to offer to their business’s growth.
Tip 3 – Keep Trying To Boost Business Operations
Under such unstable conditions, most companies are likely to cut pay, let alone offer bonuses and appraisals. For your employer to offer appraisals or incentives, it is crucial that the business operations run just as they did before the crisis. Thus, effective measures must be adopted to restore the business’s demand and supply.
Now, moving on, let’s talk about some easy ways to manage your finances without any hassle.
3 Simple Ways To Manage Finances
- Maintain Financial Security – It is extremely important to be prepared for a financial crisis. To do so, you can create an emergency pool of finance so that your monthly expenses are met even if you are laid off from your current organisation or face sudden pay cuts.
- Opt For Affordable Financial Options – If you are running short of funds having faced a job loss or pay cut, you can apply for a loan from a reliable lender at affordable terms.
On the other hand, if you are a small business owner, you can also meet transient business operation requirements by opting for affordable bill discounting services from a lending institution.
- Assess Your Liabilities – When faced with financial challenges, it is ideal to analyse your liabilities first. This includes EMIs, insurance premiums and day-to-day costs of living, among others. You can try to restrict all non-obligatory expenses to maintain healthy disposable income to tide over a sudden pay cut.
The Bottomline
The tips discussed above should ideally help you to protect as well as manage your financial outlook conveniently. A sudden change in your financial equilibrium is always a possibility. However, undertaking the correct anticipatory measures can always help.
