Financial Planning: Dealing with a Salary Crisis: #JetAirwaysCrisis
CEO of Jet Airways says, “We don’t have an answer today to the very important question of “what happens to us employees during the sale process”.
22000 employees of Jet Airways are anxious to get this answer.
Many of them haven’t had their paychecks since Jan’19. Some of them have liquidated or may liquidate their “long term” assets for daily expenses or paying fees for their children. Few of them might borrow or have already borrowed from friends.
Only a handful of them, who had their personal financial planning in place, possibly done through a qualified financial planner, will be slightly better off to handle the crisis.
A salary crisis like that of Jet Airways(#JetAirwaysCrisis), can hit any salaried person at any time. It’s a tough one to deal with.
Yet, it’s possible to manage in a better manner by following some quick measures as below
Create a track of your monthly expenses to reduce it
Sit down with a pen and paper and list down your expenses for last 3-6 months listing each line item. It may sound trivial, but this exercise will give you good insights about your spending. In order to reduce your expense, you may need to classify them as
With this detailing, you will be surprised to note that a large part of this expenditure can be avoided or reduced. The first good step is to curb unwanted expenditure and set your expenses right.
Assess your short term situation
Figure out how much cash you have readily available or can get on short notice, it’s important to know how long you can make ends meet on the financial resources that you already have in hand.
Figure out which savings you should liquidate first
Avoid liquidation of your long term savings like retirement, PPF, Mutual Fund SIP to the extent possible for your monthly expenses. Your FDs and RDs can be liquidated first. You may explore taking loans on your outstanding PF balance for payment of outstanding home loans or medical expenditure.
Avoid personal loans to the extent possible
Loans taken on LIC or ULIP policies work out to be cheaper compared to personal loans.
Take a financial advice from a qualified personal financial planner
A qualified financial planner can suggest ways to save more and deal better to mitigate your crisis. He / She may help you to curb expenditure in an optimal manner and inculcate the much-needed financial discipline.
Know about your employer sponsored mediclaim policy
Even if your employer is in crisis, mediclaim policies will still hold as premiums are usually annually paid. Check this out, this can help you in case of any medical emergency for yourself or family members if they are included.
Above measures will surely help. However, a sound financial plan to deal with salary crisis is a proactive measure to consider. Good news is, it’s never too late to start a financial plan.
You need a qualified financial planner who can help build you a sound financial plan to deal with salary crisis for future and deal with salary crisis like Jet air (#JetAirWaysCrisis) in a better manner. For many of us who are lucky and still have time in hand, it’s high time you visit financial planner profiles and start planning your finances.
While we sincerely hope that a salary crisis like that of Jet Air, gets resolved soon, this surely is an important lesson for most of us who take our jobs and lives granted. A lesson we must learn and inculcate in our daily lives right from now.