I received a forwarded e-mail from my sister about Basic Do’s and Dont’s During recession. I want to share with you guys simple tips on What to do during recession.
A recession, by definition, is when the GDP declines for two or more consecutive quarters; but how does that really affect you? In reality, it’s a period of economic slowdown that is marked with companies earning less, paying less, and generally things in life are a little less prosperous.
So what should you do to prepare yourself if a recession, specifically a prolonged recession, hits? Just take this Simple tips on What to do during the Recession.
- 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 Simple tips for employees during recession times
I am 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 o I need to save a little money for a rainy day
- Do not take too much vacation
- Do not ask for promotion. Don’t ask for a salary increase. If you ask, you may soon not have a job. Remember, there are people available with better skills at lower salary levels.
- 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.
- 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 o Take training programs
- Organize team meeting to improve productivity
- Always be engaged & productive o Work doubly hard and save money for your company
- Remember, your boss is always right and is the best (recession or no recession)
- Be cheerful, keep smiling, life goes on
- Take a stock of your expenses – actually write it down o Tick “Need to have” vs. “Nice to have” . Knock off all “Nice to have expenses” – 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, Simple tips for employees during recession times
The big loans
- 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.
- If you think the property will fetch a decent value, then sell it (though it is a buyer’s market)
Do I buy anything now? Do 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.
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
Don’t worry – what goes down will always go up Markets will rebound – these tips will prepare you to be a winner.