Thursday, February 22, 2024

Important Steps You Should Take Now To Avoid Impact On Your Livelihood…

The whole world is facing serious economic challenges for almost a year. After two decades, the fear of economic recession is haunting the people again. Economic recession not only shrinks the economies of countries, but it also leaves a huge impact on the lives of common people. Due to this, the income of the people decreases, while the daily expenses increase wildly. Right now, the fear of recession of all the economists and businessmen is not accidental. Many banks have sunk one after the other and for more than a year, a terrible phase of retrenchment is going on. What to talk about the world of new companies i.e. startups, giant companies around the world have been forced to do Global Layoffs this time. Let us know how safe is your job in this era of retrenchment and what preparations you need to make to avoid any untoward situation…

Layoffs happened here in the past

Before proceeding further, let us inform you about the seriousness of this round of retrenchment. News of the layoffs has been filling the pages of newspapers and occupying television spots for more than a year. Looking at the latest cases, Accenture, one of the leading IT companies, is about to lay off 19,000 people. At the same time, the challenge of finding a new job has also come in front of thousands of employees of Indeed, an online company that helps in finding jobs.

so many jobs lost this year

In fact, this phase of retrenchment is going on since last year and even in 2023, its pace has not reduced. We took the help of layoffs.fyi.com for this. This portal compiles the statistics of layoffs around the world. According to this, during the first two months of this year alone, tech companies across the world have laid off more than 1.21 lakh people. While 84,714 people were fired in January, tech companies laid off 36,491 employees in February. In March, apart from Accenture and Indeed, companies like Roofstock, Twitch, Amazon, Livespace, Course Hero, Clavio, Microsoft, Facebook’s parent company Meta, Y Combinator, Salesforce, Atlassian, Sirius XM, Allergo, Cerebral, Waymo, Thoughtworks were laid off. are done.

All the employees of these companies are unemployed

A report by Business Insider shows a more worrying picture. According to the report, 16 startups have fired 100 percent of their employees so far this year. This means that he has shown the way out to all his employees. Three of these startup companies are from India. Bengaluru-based VTrade and Dux Education and Chennai-based Fipola have laid off all their employees. Indian startup companies like Unacademy, Vedantu, Cars24 have shown the way out to thousands of people in different rounds. Edutech sector’s Byju’s has also laid off on a large scale. In such a situation, you can imagine that this time how frightening is the pace of retrenchment and its wave can eat up your job anytime…

Don’t get retrenched…do it’s solution

Now we know what preparations should be made for the situation of being a victim of retrenchment… These preparations are necessary, but why not do something so that your company does not throw you out of work! First things first… If you also work in the private sector, then always be ready to face it. Although no company likes to fire its employees even when it is very difficult, but this time the situation is different. However, even in difficult times, such employees are removed, whose work is not good. So to avoid retrenchment in times of recession, there is no other way than to focus on the work honestly. Do your office work with full responsibility, so that the company finds it necessary for you to stay.

Always keep emergency fund ready

Now let us know what to do if layoff has made you a victim. For this, we talked to some experts in personal finance. Financial advisor Jitendra Solanki says that in case of job loss, the first challenge comes to meet the necessary expenses. For this, everyone must prepare an emergency fund. The effort should be that you have an emergency fund worth at least six months. Suppose you need Rs 30,000 every month including your essential expenses such as rent or EMI, food items etc., then you need to keep an emergency fund of at least Rs 1.80 lakh ready. Given the increased uncertainty after the pandemic, Solanki says that instead of six months, people should now focus on creating an emergency fund for a year.

Pankaj Mathpal, managing director of Optima Money Managers, also calls emergency funds very important. He says that people should have an emergency fund for any situation like retrenchment. Everyone should prepare this fund for 9 to 12 months. That is, how much amount you will need for the necessary expenses for the next 9 to 12 months, it should be prepared in advance.

This is how emergency fund will be made

Here comes an important question that how to create an emergency fund? Mathpal says that in normal days people spend a fair amount of money on such things, without which life can go on well. Especially habits like impulsive buying i.e. buying without need when the market is out should always be avoided. People take many subscriptions on normal days. They can be closed if the situation worsens, so that regular expenses are reduced. Anyway, if a person sets aside a part of the fixed income every month for the emergency fund, then it will help in reducing the expenditure. First you see how big a fund you have to make and in how much time. According to that decide the share of every month.

Be careful take job insurance

In recent times, a new type of product has come into vogue in the insurance market, namely job insurance. The MD of Optima Money Managers explains that job insurance is very popular in countries like America. In India too, some companies are offering products like job insurance, but such products have not become popular here yet. Mathpal also instructs that before buying a product like job insurance, it is necessary to understand their terms and conditions very well, because there are many such terms with them, which are difficult to fulfill. In such a situation, even if you have job insurance, it will not work for you when needed.

read this also: Vedanta refuses to sell stake, know how it will repay billions of dollars of debt

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