In this article, we will be discussing the impact of the recession on jobs and how one can manage their financial health amid this uncertain period. Will there be big layoffs or hiring freeze in India just like the US Tech giants? Let’s discuss this all in this article as we move ahead.
Impact of Recession:The Global economy except for India is under heavy recession. Majorly the developed economies are facing heavy recession due to higher interest rate hikes
The majority of the startups are undertaking layoffs or freezing their hiring. In such a fluctuating scenario it becomes of utmost importance, to manage our finances. There is a slight job risk along with higher inflations.
Things to do:1) Review Your Financials:
- Review your financials, the goal between where your finances are & where you wish to have them.
- Creating a budget & following a budget till the word goes.
2) Building Emergency Funds:
- Emergency funds are of utmost significance which shall give a cushion of comfort. Build an emergency fund of 6 months-12 months.
3) Asset Allocation:
- Asset Allocation here becomes an important parameter, debt allocation is important, and rebalance your equity & real estate portfolio.
4) Repayment of Loans:
- Due to interest rate hikes, there shall be a rise in our existing liabilities. If you have excess cash, try to repay your debt to avoid higher future costs.
5) Avoid New Loans:
- Avoid Taking Newer Loans, and reduce your expenses to match the current global scenario.
- One should focus on needs rather than wants.
6) Alternative Income:
- Try generating an alternative source of income. Try doing a side hustle, moonlighting to manage your finance & reducing dependence on 1 job.
What Should Individuals Do:
Although India is in a better space, we should always be prepared for the best. It is expected that India will continue to grow and might outperform other nations. But there could be some impact of recession in the global economy in India as well and hence one should be well-prepared with it.
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