Manage personal finance with reduced income during Corona

Novel corona crisis brings the longest ever lock-down in India making almost all business unit difficult to sustain. With this, Pay cuts and job cuts are among most feared topic among employees. If your company does not have enough resources to afford salaries during current time and if you are expecting job cuts in your company like many others, follow these 5 tips to manage your personal finances:

  • Prepare mentally for a possible period of reduced income or unemployment:

Job loss certainly disturbs us financially but few of us might get more impact mentally. However these challenging actually demands us to keep our calm to plan ahead. Remember, in whatever current job you are, it is not end of the world. So it is more important to stop over thinking and worrying, instead start planning with below tips.   

  • Mimimise spending like you are already in emergency:

Lockdown has already brought down our spending and restricted it on essentials only. Keep track of your immediate cash availability (including bank balance) and decide on future spending accordingly. Start deciding on your spend like you are already under emergency this will help to sustain current cash for more number of days.

  • Do not spend from credit card:

Credit cards are more tempting when you do not have cash. However in time like emergency, it is better to forget your credit card for any spend when you may not pay it back within credit period.

  • Make list of your assets which can be liquidated if required:

If you are expecting loss of income to stay for slightly longer, liquidating assets should be choice to manage cash. You can make list of all assets you may liquidate. You may also make mantle priority of which asset to liquidate first. Liquidating asset even at lower price can be better over external borrowing as borrowing comes with increase in future cost in terms of interest.

  • Keep looking for temporary income opportunities:

List down your key skills and knowledge area. Can you use this to generate temporary income through freelancing jobs or temporary project work? There are various online marketplace websites available for freelancing where you can try listing yourself.

  • Start exploring new job opportunity through non-traditional ways:

Finally, after preparing mentally and financially for the tough period of loss of income, its time to start looking for ways to resume monthly income soon. You might here things there are no jobs in market during current difficult time. This should not become your starting point when you start searching for jobs. Such times demands you to think of more non-tradition ways to look for job. To find out what are ways to land a new job in current time, You may like to read: 7 tips to find a new job during difficult times of Corona.     

And finally if you are thinking to opt for loan EMI moratorium or withdraw from PF account as allowed by the government, click above link to help you in taking right decision which suits your need.

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