5 things to do ‘financially’ when you are between jobs.

26 May, 2017


I got fired - key “financial check up” steps to do now!

Recently, lots of news articles are talking about lay offs, down sizing and pink slips in the IT Industry.

Lay offs, down sizing are now normal in business and it is not a reflection of you. However, it is good time to take stock of what your goals were and how you stack up against them.

I got axed is not panic time but a time for reflection across various goals including financial.

So with the financial goals in mind, I would recommend you do the following:

1. Take Stock of your income and expenses:

In our busy day-to-day routine very few of us create and manage a tight income and expense sheets. Lot of people just manage that as long as the bank balance is +ve they believe they are fine.

However, this is the absolutely the time to take stock of every penny of your expenses as your income has just gone away.

Please list all your expenses: House rent, Electricity, School fees for Kids, Regular Medicine, wifi, mobile bills and Loan repayments.

Further classify them into ‘necessary’ or otherwise. Arrive at - How many months can you go by:

- with all your expenses but no job, and
- with only necessary expenses but no job


2. Understand your EPF’s, Stocks, Mutual Fund and Insurance investments:

You should also take stock of all your investments and assets to understand their current value.
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3. Pull out your Credit Bureau Report
Please visit either of the following Credit Bureau’s in India:

- CRIF -https://cir.crifhighmark.com/Inquiry/B2C/B2CFFCRPortal.action - CIBIL -https://www.cibil.com/ - Equifax -http://www.equifax.co.in/consumer/forms/credit_report/en_in - Experian -http://www.experian.in/index.html

I would suggest get the report from 2 agencies to ensure you are sure that you are aware of the loans, Credit Cards that have been issued to you.

Please ensure the report is correct and if you are not using any of the facility or wrongly reported you have them corrected.

It is important to maintain your Credit Score and not let it fall while you are finding yourself a new job.

4. Pay down your Credit Card and put them in a safe

Credit cards charge interest rate of 44% per annum. Avoid having any balance outstanding on the card. Find a loan and pay-it down. Save yourself money in the form of interest payment to banks.

However the better step to just not walk with your credit card any more. Stop being impulsive on your spending.

5. Keep paying your loans repayments on time

Now that you have all the data in your hand – make a list of payments, which you have to make every month. For Example: Rent, Electricity, School Fees, Insurance Fees and Loan Repayments.

You can try and reach out to your bank or lender and make them aware of your situation. They could extend your loan and make the burden of repayment lower for the rest of loan period.

I cannot over-emphasis the need to keep your loan repayments on time. Loosing a job is NOT an excuse to delay payment. This will hurt you in the long run.

Finally, be financially healthy while looking for your job. Happy job hunting.