Laid off? Here are 3 things you must do

Lay off news is everywhere. From the top, established companies to startups, everyone is trying to preserve cash and cut the bloat.

As psychologically debilitating it is, it is important that you have 3 things in place before a lay off strikes.

#1 Have your own life and health insurance in place.

All policies provided by the company are worth nothing, once you are laid off. And, for heaven’s sake, if a tragedy comes along then you and your dependents are looking at a black hole that sucks in all the money.

Before your final day, you must have your own life insurance and medical insurance policies.

Because later, insurance companies can find 10,000 reasons to not give you one. Speaking from experience here!

#2 Revaluate your emergency fund

An emergency fund can be the big lifeline that you need in the chance of a layoff. Ensure that your emergency fund is looking at a healthy 12+ months of expenses (including EMIs).

Reduce dependence on the rest of the portfolio.

This should be a good enough period for you to find your next job or work opportunity.

#3 Assess your expenses, EMIs

Don’t be afraid to curtail any expense that doesn’t scream “need”. All wants and desires can wait. Ideally, your expense pyramid should first have survival/need based ones, then home loan EMIs and then anything else.

If a car EMI is becoming a burden, let it go. If you have a high maintenance asset, let it go or renegotiate its terms.

SIPs, investments can wait for you to resume your work.

Just like your company, which was unafraid to let you go, you must focus on your own survival now.

All the best!