Layoff is a hard thing to cope up with. If you feel you are at risk of losing your job, it is best to start thinking about how you can secure your future. The risk is particularly high because companies are opting for automation, subsequently reducing job opportunities, to cut cost . The advent of machine learning, artificial intelligence and deep learning has led to this situation. So, it's important to be financially prepared for a future where jobs may no longer be guaranteed.
1. Build contingency fund
Basic motive of a contingency fund is to provide financial security in times of desperate need such as medical emergencies and layoffs. Ideally one should have six months' living expenses as contingency fund. Start building such a fund and keep it in a debt mutual fund so as to get higher returns than savings account and yet enjoy liquidity.2. Invest in yourself
Most importantly invest in yourself to increase and constantly improve your skill set. Relevant skill set is the most important factor considered by recruiters while hiring. Jobs that include strong interpersonal skills and physical well-being would be least impacted.3. Do not fall for quick money making scheme
Do not fall for Ponzi schemes which offer high returns in a very short time span. You will only end up losing your hard earned money.4. Buy insurance at the earliest
Term insurance is insurance in the purest sense. Insurance would provide a lifelong sense of security for your dependents. Buying a term insurance in younger age is cost-efficient and provides a decent cover. For a 30-year-old non-smoker, a cover of Rs 1 crore is available for as low as Rs 750 per month.
5. Don't take unnecessary market risk
If you invest then do not invest in stocks of smaller companies as they are volatile. Invest in large cap stocks and funds as when the markets would turn upside down then these large cap investment avenues have the least risk and would not fall as much as small caps.6. Delay high value purchases
High value purchases should be delayed as spending most of your savings is not a great idea if you have job insecurity. Such high value purchases are often followed by EMIs which prove to be a burden to repay in hard times.7. Increase networking
When it comes to finding a job, networking matters. Increase your professional network on sites such as LinkedIn. Present your achievements in an attractive manner. You can also reach placement services as they will boost your reach. Moreover most of such placement services are free of cost for the applicant.8. Subscription of job sites
Buying a paid subscriptions of job sites would definitely increase your reach and visibility across recruiters. But keep in mind it does not provide a job guarantee.9. Don't increase your borrowings
Remember borrowed money always has to be repaid along with interest. Even your credit card provider charges interest if you repay after your billing cycle ends. Do not create liabilities for yourself that you will end up paying high interests for.