Sunday, December 14, 2008

What do I do during recession?

Simple tips for employees during recession times

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
What to do in this Recession
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
I need to save a little money for a rainy day

Simple tips for employees during recession times
Basic Don’ts
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.

Simple tips for employees during recession times

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

Remember, your boss is always right and is the best (recession or no recession)
Be cheerful, keep smiling, life goes on 

Simple tips for employees during recession times
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” – 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
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)

Simple tips for employees during recession times
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. Actually, you can write your own terms on the agreement.
First preference – Buy Land (always buy small sites, it is easier to dispose. Else farm land is a great option – big land, low cost)
Second preference – Buy House + Land (again buy from known developers)
Third 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.

Simple tips for employees during recession times
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!

Simple tips for employees during recession times
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

Simple tips for employees during recession times

Don’t worry – what goes down will always go up
Markets will rebound – these tips will prepare you to be a winner

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