We all know about the current World market which is very sensitive and uncertain. Even small news is creating a huge panic across the market and economy and so is the case with job market as well. What it means to the people in employment? Well, it simply means that it is common nowadays where your salary is slashed or you lose your job.
Yes, it is easy to say this; however, not so easy for the employee who got affected. One might have lot of short term and long term personal and financial commitments which is completely dependant on his/her monthly salary. In this article, I am listing out some of the tips to survive when your salary is slashed:
- Make a note of immediate expenses as per your budget: You might be having a monthly budget of financial commitments (it’s the right time to have one, if you don’t have yet). Go through it and make sure that you are aware of how much money you need for priority spending. It is also advisable to distinguish your spend as “Priority Expenses” and “Avoidable Expenses”.
- Lower your expenses: We just spoke about “Avoidable Expenses” in the previous point. This is nothing but the expenses which can be avoided and you have to think of avoiding these. For example: outside dinner, party, movie, shopping etc. which can very well be kept in hold for some time.
- Re-work on your investment goals: You might have a target saving of 30% of your take home salary. Try to retain it is as much as possible, since it can save you in future. So, concentrate more towards expenses when your salary is reduced, instead of investments.
- Restructure the outstanding loans: You might be paying EMIs for home loan, car loan etc at a certain amount. When your pay is cut, make sure that you approach your bank for restructuring the loan terms. This means, if you extend the tenure of the loan, your EMIs will reduce to certain extent. You can get the old terms back when your salary is increased or you change a job for better salary.
- Avoid credit card interest: We all love to use our credit cards as and when we want. Well, it is important to keep in mind that the credit card interest is the highest of all interest rates I,e around 35% to 40% per year. So, clear all the credit card dues within time and save the money which you have to pay towards interest.
- Part time jobs: There could be a rising threat in job market, but there is always an opportunity to work for part time or for a part time business. Never sit idle; you might find some good earning opportunities when searching through different sources. Explore all those options to see which one better suits you and meet your financial requirements.