Looking at the Lockdown from the perspective of Salaried Persons , we may say that there is not much they can do in this situation but there is a lot to do now and also after lockdown. Many salaried persons currently sitting at home are ideal and unable to work for which they usually get paid monthly . Professionals and experts are advising Business owners not to lay off their employees in such difficult situations and try to make their payment even if in part payment mode . But what are employees actually doing at their end to rise from the situation ? Cash flow management will be equally challenging for Salaried people . Here are some steps you need to follow in order to rise from the situation post lock down.
As you all are aware that businesses have stopped working still they will be paying you salary you need to be mentally prepared to accept that you might get only part of your salary . There needs to be a clear picture in your mind that the situation is equally serious when it comes to managing in part salary. You need to be mentally prepared for tackling with the situation and not run away from it .
You should make a list of all expenses along with the amount specified which you incur monthly may it be loan instalment , rent , food , clothing ,travelling , mobile recharge , family functions , restaurants , movies etc . Once the list is prepared you should mark it as Essential Expense and avoidable expense . This list can be prepared by all members in the family . Once you are able to Measure your expenses , you will be able to manage it . In the lockdown period we have realized that we can live a simple life and still be happy so we have to curtail down the avoidable expenses for few months till the cash flows in smoothly .
Example – If you have 2 wheeler or 4 wheeler avoid travelling by it and use public transport to save some money, avoid outside food , avoid shopping unnecessary products etc.
Remember times are tough for your employer too . Majority of his income is at a standstill. So even if he is agreeing to pay in parts you have to be loyal and stay with him in such times . The Job market is going to suffer a big time crisis so do not attempt to leave the job and switch to other job as that will be more troublesome . There will be no increments or bonus and appraisals for the next few months so be prepared for it and work without any such expectations of increase in income atleast for a year . Example – A half month’s pay cut by the employer should not be the reason to leave the job , appraisals promised before march might be delayed due to the crisis .etc
Medical or life emergencies cannot be avoided so be prepared for it in advance . Check whether your Mediclaim cover and insurance cover are enough for you and your family if any emergency comes in . Also keep 5% of your income of every month aside for medical emergencies . Example- In case of small disease try to visit government hospitals to avoid high costs.
Check your savings and try to use them in such times . If the situation worsens and you are unable to manage then try to liquidate your Assets like Fixed deposit , recurring deposit , Gold etc all these were accumulated by you for such situations only so do not worry much and try to use them wisely . Do not liquidate assets and use for unnecessary or unessential goods or services .
It is advisable to avoid any new loans if you can manage in existing assets and liquid funds . Credit cards should be wisely used in order to avoid future problems due to excessive use. Some people might advice you to take short term loans from the market to sustain in the scenario post lockdown. Carefully evaluate whether it is required for you or can be avoided.
A simple lifestyle should be preferred to a luxurious one until things are stable .
Utilize this time to learn a new skill in your area of expertise . Watch new videos , read new books ,learn new ways of doing old work , improve on some art forms which you excel in .Evaluate new sources of generating passive income. Try to learn share market and try to invest a part of income in shares which will give you a passive income source in future . Take expert advice before entering into share market .
” If you can measure it , you can manage it . “
Start measuring stop worrying .
The article is Author’ s personal opinion as per current situation as on date . For any further assistance the author can be reached at – email- [email protected]