Steps to Manage Your Finances, during Layoff!

Big IT companies could hand out pink slips to hundreds of mid and senior-level employees as it carries out its bi-annual performance review amid a challenging business environment.

The development comes at a time when its peers Wipro and Cognizant are taking similar measures to control costs.

Cognizant Technology Solutions offered its top executives - directors, associate VPs and senior VPs - a voluntary separation package , a part of its plan to shift operations to automation and digital technology.

It was reported that at least 1,000 executives are expected to go. The company is expected to eventually cut at least 6,000 jobs, or 2.3 per cent of its total workforce.

What if such a situation hits you? Are you prepared to deal with such an unexpected storm?

Here are some Tips to manage your finances during Layoff

Determine How You Are Spending Your Money

When times are good, most people do not think about how they spend money. We know how much the mortgage or rent and monthly car payments are, but we don't pay attention to daily spending. How much do we spend going out to eat? What is our weekly grocery bill? What about utilities and insurance? Being more aware of how you spend your money will cause you to spend it more carefully.

Your next priority should be your grocery expenses. You have to eat to survive and be shipshape to go out in search of another job. Visit your nearest discount stores and check who sells your items of daily need cheaper. This exercise may help you save some dimes but if you are laid off or fear a layoff every penny should count.

Look at health insurance options.

Health insurance covers cost of an insured individual's medical and surgical expenses. Subject to the terms of insurance coverage, either the insured pays costs out-of-pocket and is subsequently reimbursed or the insurance company reimburses costs directly.

Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider.

Finding difficulty in investment and financial planning? We at Moneymindz.com will make it easy for you. Just give us a missed call on 022-62116588 to explore our India’s best Free Advisory Service.

MONEYMINDZ DO NOT SELL ANY FINANCIAL PRODUCTS, WE ONLY PROVIDE UNBIASED, FREE, ON PHONE FINANCIAL ASSISTANCE.

Look Into your Investment 

When you find out you’ve been laid off, one of the most important (and potentially urgent) things to do is take a look at your portfolio to see if it needs any changes.

In general, the primary factor in determining your asset allocation (i.e., how much you should have in stocks and how much you should have in fixed-income) is your risk tolerance—that is, both your financial and your psychological ability to handle volatility.

For many investors, when they get laid off, they find that both of those things change dramatically. They can financially afford less risk, because money that they had previously not expected to spend for a decade or more might now be spent in the not-so-distant future. And they can psychologically tolerate less risk, because their life suddenly feels much more tumultuous and scary.

Prioritize Bills

When cash gets tight, you might need to prioritize which bills you need to pay first. For example, it’s better to push off a medical bill than a mortgage payment, Additionally, you should let lenders and service providers know about your financial situation before you miss a payment.

“Once you skip a payment or two, and they send you to collections, all bets are off

You might be able to lower the amount you owe each month by taking advantage of programs for those in need.