India’s auto sector is experiencing its worst slowdown in the last two decades these days. It has caught many off guard. With massive layoffs of workers in the auto industry, the situation even though temporary looks grim.
Suhas (name changed) a mechanical engineer who was employed in the auto ancillary sector too lost his job a few months back. One day his employer asked him and many of his co-workers to resign stating considerable losses in business due to slowdown, leaving them in the middle of nowhere.
Can you imagine the kind of shock he must have received?
With two children and his wife to support, Suhas is clueless about his sustenance and has been on a job search for four months.
While the situation is temporary and demand in the auto sector is expected to revive over the next 12 months, it is the survival in the interim period which makes the situation tough for those who face such unexpected problems.
Such situations can happen to anyone in any industry
We hear about layoffs all the time in the IT industry. Just a few days\’ back there was an article in the Times of India about how IBM had fired as many one lac employees in the last few years, simply to appear cool and trendy as Amazon and Google according to a deposition by a former employee.
The latest to join the layoff bandwagon in India is an online food delivery platform which has laid off over 500 employees at the company’s head office and a transportation network company which has laid off over 400 employees across its product and engineering teams.
And if you think government jobs are secured, think again. Due to a massive cash crunch, there are constant media reports about regular delays in payment of salaries to employees of public sector telecom companies. Just a few days back, there was a news on the website named track.in that, a public sector telecom giant is planning to fire 30% of its contract workers and offer a Voluntary Retirement Scheme to 50% of its permanent employees in its Pune division.
So in short, in today\’s world, there is hardly anything called job security irrespective of whether one is working in the private sector or the public sector. Believe it or not, the best way to deal with such unexpected uncertainties is to be prepared.
When a person loses his job, the most significant problem he faces is piling up of monthly bills in the form of telephone bills, electricity bills, grocery bills and school fees of children. The situation would worsen further if there are outstanding credit card dues, home loan or car loan EMI\’s.
Lack of money in such difficult times can cause conflicts and fights in the family too. That’s why such situations should not happen in anyone’s life.
Beyond the loss of income, losing employment unexpectedly also comes with other significant losses which are even more challenging to face, such as loss of professional identity, loss of self-confidence and loss of sense of security.
Hence it is essential to for every person to save at least 30 to 35% of their monthly income for such situations. Remember, money speaks only one language \”If you save me today, I will save you tomorrow\”.
We often come across people who feel that a small monthly saving won’t matter much in the long term. Well, the idea here is not just saving anywhere, but keeping in the right place, which can multiply your wealth to a certain level over a few years.
Even a small investment in the stock market in India can make a big difference
Most people prefer to stay away from investing in the stock market in India due to its high volatility. However, when you invest every month in a systematic manner in good stocks, you need not worry about market volatility as your investment costs are averaged out. Read more about why one should look at corrections in the stock market in India as an opportunity.
However, before you start investing in the stock market in India, an important thing to do is to set aside money equivalent to at least 6-8 months of monthly expenses. This emergency fund will provide a safety net in the event of an unexpected event like the loss of job and give adequate time to find a suitable job.
A person with a strong financial background is more likely to live a tension free life without worrying about the fear of job loss. And even if such a situation does arise where such a person loses his job, he can still do well without worrying about monthly bills and instead focus on the job search or upgrading professional skills.
Start investing in the stock market in India today to create wealth and live a worry-free life. Know more about the best way to invest.