Lost your job? Some tips to help you tide this phase

Abhinav GulecchaThe look on Rashmi’s face was like the earth has come down on her. After speaking with her, I came to know that while she was expecting a promotion and for all her good work, the gift she got was a pink slip, that too in the most humiliating way: being asked to return her laptop, clean up her desk and asked to leave the premises in a few hours.Rashmi is not alone. There are many like her in the country today. So, if you are someone who has been recently laid off, have a family to support and think that all is now lost for you, it’s time to take a deep breath and read these tips, which will hopefully help you feel better & help you in putting your finances in better shape for the tough few months.Bear in mind: It’s not the end of the worldAs a professional who everyday spends crazy hours behind the cubicle, a layoff will understandably feel like a shattering experience and a severe blow to the self esteem. Top it up with the ever so common syndrome ‘log kya kahenge’. First of all, please note that job loss is not that big an issue now as it was say a decade back. Today, most people are mature enough to understand that it may be due to reasons that have nothing to do with your individual performance. You need to focus on the present & how to come out of this phase.Put your finances in orderYes, few months will be tough - there will still be bills and EMIs, but no income. The challenge is to see off this period till you find another job and things are back on track. At the time of leaving the job, ensure that you collect your service certificate & that your severance pay is in line with the terms & conditions of your appointment. Don’t forget to collect your other entitlements like gratuity etc. Close your salary account, if not required.At home, open an excel sheet and list down all your financial assets and liabilities as on that date - existing bank balance, loan accounts, credit card outstanding, investments, insurance, monthly expenses, EMIs, SIPs etc.

If you have maintained an emergency fund of atleast 3-6 months for this rainy day, pat on your back. If not, time to sum up all your liquid investments: FDs, RDs, liquid/debt funds, balances in all your bank accounts. From this amount, reduce the money to pay off any credit card dues. The balance is your emergency fund. Say this is (A). Now, sum up your monthly expenses as well as any EMIs, and put this as (B). Now, divide (A) by (B), and what you get is the number of months you can survive without getting another job. If you feel it’s too short a period, make a plan to liquidate your other investments (bear in mind the tax implications, lock in and exit load before taking any decision). As for the SIPs, some mutual fund houses offer a pause facility whereby you can pause the SIP for a few months. Also, it makes sense to keep your friends or extended family in loop that you are running an emergency and might need financial help.Important note: DO NOT skip your credit card dues or worse, settling it with the credit card company - it can cause long term damage to your credit worthiness - via your CIBIL score. Pay off the card dues immediately.On the insurance front, DO NOT make the mistake of skipping premium payments for existing policies - insurance is all the more important now as you no more have the umbrella of a company provided cover. If you don’t have your own life, health and personal accident covers, though it might sound highly counter-intuitive, purchase these insurance covers now.

If job market looks very tight and getting a new job looks difficult in near few months, you may also consider speaking to your home loan provider to re-structure your loan. Alternatively, if you live on rent, it will not do any harm to speak to your landlord to defer some payments till you find a new job.The hunt for the next jobWhile you put your finances on track, don’t forget that it is critical to actively be looking out for a job. Update your resume on the various job sites. For a small fee, you can also consider their premium services, which can help your resume to be more visible and thus a better chance for getting interview calls. The best thing however, is to make a list of your professional contacts (I will call them your “professional raft”) & reach out to them over phone or e-mail. Having worked with you, they will be in a better position to refer you with confidence for any openings that get closed through inside referrals. Don’t fail to also explore online professional networking platform like LinkedIn. Final word: Everything is a lesson to growMore important than these tips, it is important for you as a professional to put the job loss in proper perspective. It is just another event in your professional career and like all other events, will give you valuable experience & understanding to see your work as a part of you, and not the whole of it and also the importance of proper financial planning,.  Even if you are presently in the “safe zone”, proper planning will ensure that any such event does not break you. As for Rashmi, I met her couple of months later and was surprised to see the relief and delight on her face. Over a cup of coffee, I came to know that she eventually got placed in a better company and at a far better profile, and couldn’t resist a smile as I silently recalled the age old wisdom that our dadis and nanis have always passed to us - “Have faith. Whatever happens, happens for good”.