The post-pandemic economic downturn can increase the risk of layoffs. Although Indonesia’s economic growth has shown improvement, unemployment remains high, and several major companies have implemented mass layoffs. To navigate this situation, it’s crucial to prepare with strategic steps to handle the threat of layoffs more effectively. Here are five steps that can help you prepare:
1. Build an Emergency Fund
Why It’s Important: An emergency fund provides financial security for unexpected situations, including layoffs. Having a sufficient financial cushion gives you time and flexibility to find a new job or adapt to financial changes.
How to Prepare:
- Savings: Set aside 10%-20% of your salary each month for your emergency fund. If this feels challenging, start with 5%-10% and gradually increase it.
- Automation: Use your bank’s auto-debit feature to automatically transfer money into your emergency fund after each paycheck. This helps prevent the temptation to spend the money meant for savings.
2. Cut Back on Expenses
Why It’s Important: Reducing expenses is crucial for managing your finances during uncertain times. By cutting non-essential costs, you can extend your financial resilience.
How to Cut Back:
- Prioritize Needs: Focus on essential expenses and cut spending on non-essentials such as dining out, luxury items, or unnecessary subscriptions.
- Budgeting: Create and stick to a monthly budget to ensure every expense is truly necessary.
3. Enhance Your Skills
Why It’s Important: Additional skills can improve your competitiveness in the job market and open up opportunities for better jobs or new career paths.
How to Enhance Skills:
- Online Courses: Enroll in online courses or webinars to learn new skills or improve existing ones.
- Free Resources: Utilize free resources such as YouTube tutorials, articles, and forums for self-learning.
4. Expand Your Network
Why It’s Important: A strong professional network can open doors to new job opportunities and provide support during tough times. Good connections can help you get job referrals or information about unpublicized opportunities.
How to Expand Your Network:
- Networking: Join industry groups, professional associations, or online communities related to your field.
- Attend Events: Participate in seminars, conferences, and networking events to meet people in your industry.
5. Consider Side Gigs
Why It’s Important: Having an additional source of income can provide extra financial security and serve as a backup if your primary income is disrupted.
How to Find Side Gigs:
- Leverage Skills: Use your skills or hobbies to earn extra income through freelance work, consulting, or selling products/services.
- Online Platforms: Use platforms like Fiverr, Upwork, or Tokopedia to offer services or products.
- Trading: If interested, consider trading as a side income source. Learning to trade and practicing on demo accounts before entering the real market can be a good starting point.
Facing the threat of layoffs requires careful preparation and strategic actions to ensure financial and career stability. By building an emergency fund, reducing expenses, enhancing skills, expanding your network, and exploring side gigs, you can approach economic uncertainties with greater confidence. While there are no guarantees, these steps can help you be better prepared for potential challenges.
