So what can or should I do during recession?
Markets
- We all know that markets have slumped
- We read about job-loses in news papers
- People talk about atleast 24 months of recession
- Early entrants are not getting jobs
- Companies are closing
- Sales are not picking up
- Suddenly cash has evaporated from the market
- Profitability is severely hit
I am an employee
- I need to keep my job
- I need to pay EMIs
- I have a family to run
- I need to keep working to sustain myself
- I need to feel secure
- I need to save a little money for a rainy day
Basic Don’ts
- Do not take too much vacation
- Do not complain
- Do not waste time gossiping
- Don’t resist a transfer
- Don’t resist travel
- Don’t resist a salary cut
- Don’t resist extra-work load
- Don’t resist extra time at office if needed
- Don’t change jobs in this market. It is too risky.
Basic Do’s
- Be punctual to office
- Ensure you pick up new skills
- Ensure you deliver as per deadlines
- Ensure that you contribute to knowledge forums etc
- Do something innovative
- Take training programs
- Organize team meeting to improve productivity
- Always be engaged & productive
- Work doubly hard and save money for your company
- Be cheerful, keep smiling, life goes on ?
Daily Expenses
- Take a stock of your expenses – actually write it down
- Tick "Need to have" vs. "Nice to have"
- Knock off all "Nice to have expenses" and make sure you do it RIGHT NOW!
- Assuming you didn’t have a job – Plan for cash to survive for 24 months. Apparently, this recession will take atleast 24 months to come out of. Sit on cash!
- Other tips to cut expenses:
- Going to malls is expensive
- Good restaurants are expensive
- Impulsive shopping is expensive
- Taking flights is expensive
- Eating out daily is expensive
- Check services which you are not using but have subscribed to
- Going on vacations is expensive
The big loans, typically Home Loan & EMI
- If you own one home and you are living in it and paying EMI, then see if you can partially fore-close it.
- If you have two homes and paying EMI on both:
- See if you can rent the second home – don’t bother about amount of rent. Rent to get cash flows going. Don’t feel bad that rental is not good enough. Trust me – it will soon be a great feeling to rent.
- If you have enough money, then fore - close a significant part of it. If your interest rate is less than bank FD (which I doubt), then you don’t have to fore-close.
- If you think the property will fetch a decent value, then sell it (though it is a buyer’s market)
Should I buy something now or should I invest?
- Investing in stock and mutual funds?
- Generate spare money every month – take a Systematic Investment plan (about 15% of your salary) – keep buying at low values for the next 24 months
- Buy an asset – buy a house/apartment/land?
- If you have cash and feel secure, this is a great time to buy. You can negotiate hard with builders/developers. Actually, you can write your own terms on the agreement.
- 1st preference: Buy Land (always buy small sites, it is easier to dispose. Else farm land is a great option – big land, low cost)
- 2nd preference: Buy House + Land (again buy from known developers)
- 3rd preference: Buy Apartment (you always wanted to buy that 3-bed/4-bed apartment from a reputed builder, but could never afford) – now is the time to ask for free. Some are being sold at ridiculous prices.
I am looking for a job – what do I do?
- Enroll in a course / training / education as you are searching for a job. It enhances your skills
- Enroll as a trainee anywhere you get an opportunity. Most trainees end-up getting confirmed employment as a build relationships in the company
- Do not have any preferences regarding – City, Salary, Designation, Location, Shift etc. Just take it and gain experience. It is the first step to a long career
- Go through references of people who are already working.
- During job-interviews – the keyword which employers are looking for is "flexibility"
- Agree for “any place/date/time” to take job interviews. If you don’t somebody else will take that interview slot.
- Please improve your communication skills – this one skill fetches jobs!
These suggestions are tough – do I live life or not?
- The new principle – "Happiness is inversely proportional to expectations/desires". More the expectations / desires – lesser the happiness and vice versa
- Some other ways to live great life:
- Spend time with family – go for a picnic in a nearby garden
- Exercise and walk a lot, drink lots of water
- Listen to Radio, watch some TV
- Visit Libraries, read books which you purchased, but never had a chance to open them
- Go to friends place a for a dinner
- Enroll into a hobby – music, painting etc
- Do social service – start teaching, mentoring etc
- Spend more time with your children
- Join laughter forum, attend conferences and meet interesting people
- Go for concerts
Life still go on, so take it easily !
