Action plan for the employees sacked from yahoo!

They came, they hired, they sacked! 

#Yahoo is #laying off hundred's of its employees at its #Banglore center in India in one of its restructuring exercises. The news is a disaster to all those who were sacked and lesson to all those who believe that 'I work in an MNC' story never ends.

Yahoo is offering them five month's pay as severance. Now a days when a lot of people live from pay check to pay check, either by choice or by forced circumstances, we can imagine, how long will this money last!

Amid all resistance and cries...the fact prevails...Within hours of the decision being announced, we have more than 400 employees rather more than 400 families worrying about their next loan EMIs, medical bills and school fees. While some of these families may sail through the situation because of family support or earning spouse, there may be a lot who are clueless till they find out another source of income. Whatever is the situation, the blow of loosing a handsome job will be hard to get over!

Though, how one can cope with this professional yet financial and personal distress will depend on his or her #Financial Landscape and emotional capacity to bear it, there are some quick action items that can help.

Current Action Items:

1. Keep Calm: 

Easier said than done... try not to let your blood pressure shoot and create health problems for you. It will only increase the amount of medical bills for you.

Remember, just couple of years back, in year 2008, a lot people in America and the other parts of the world have suffered because of recession. They were sacked, lost their investments and were rejected in personal lives. Yet they survived and finally got their lives back.

In contrast to those days, today, economic sentiments in India are positive, lot of investment has been promised and hence there can be various opportunities for you to explore. So focusing on updating your resume and linked in profile will be more useful. Also tap your network, it is the time to take some help.

2. Keep your severance packet safe: 

You may be lucky to bag an offer at a lesser known firm and may be feeling relaxed. You may be wondering about how to use your severance...Keep it safe!

Do not invest it in buying financial products and policies which are risky and illiquid. Until your future source of income is secure and regular, you may need this money so invest the money in safe instruments like Fixed Deposit.  

3. Buy Medical Insurance:

Despite several articles being written by the financial planners about why one should buy extra medical insurance, a lot of professionals in jobs rely solely on the medical insurance provided by their employers.

In current situation, where you have lost your job, you have also lost the medical insurance cover provided by your company! So buy medical insurance as early as possible if you already do not have one.

4. Decrease your EMI: 

You may not be able to change you regular expenses like grocery bills or rent or school fees but there is a possibility of bringing change in your one major expenditure ie Loan EMIs!

If you are paying loan EMI or EMIs, either on home loan or car loan or credit card, ask your bank to Increase the term and Reduce the amount of monthly EMI. You can later increase it again to pay off your loan faster. Also you may negotiate hard for getting some EMI holiday period. 

5. Involve your family:

By now your family may have already got the news, it will be helpful to share all your fear and tension with them...they can be your pillar of strength in this difficult time!

 If you have grown up children they may have heard it from outside as well, prepare them to face the questions asked by their friends. Let them know that it is a passing phase and also a challenge of working in a dynamic environment. Let them understand, how much it is important to save money and always have a back up professional plan ready! 

Hope the above action item will help some!

As a #Financial Planner, I offer to consult #Yahoo employees without any charges at this point of time!

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About the author: Shilpi Johri is a ‘Financial Planner’ and does Comprehensive Financial Planning for individuals. She also counsel individuals & families on matters of personal finance. She writes and conducts workshops on various aspects of personal finance.

To read more about her work, please visit:

Facebook page: https://www.facebook.com/shilpijohricfp

Blog: http://shilpijohri.blogspot.in/

Youtube: https://www.youtube.com/watch?v=DS1HsIkStR0

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Image courtesy: computing.co.uk

How to handle my Personal Finance?

In the personal finance field there is this classic dilemma of DIY (Do it yourself) Vs Choosing a Fee Only Financial Planner Vs Going to an insurance or mutual fund agent?
Is it your Dilemma too?

In an answer to a facebook post describing the dilemma of anyone who does not have interest or knowledge of personal finance like some of us may feel handicap today's ever changing technology world! here were my two cents to the conversation.

First of all, all the three categories described above may seem exclusive from each other and there is a general feeling that if you are doing or are associated with one, you do not need the other. But in my opinion and as per experience, to have a sound 'Financial Landscape' (Your financial landscape consists of personal, professional, health and financial situation) and a confident and peaceful life...You need all of them!

Why DIY:

Let me explain, you need to get involve in DIY meaning ...Understand basic terms, so that you are able to differentiate between Mutual fund and ULIP or insurance and investment so that you are being emotionally coerced into just signing up the dotted line.

Why go to a Fee Only Financial Planner:

You Can Choose to go a Fee only Financial Planner, who will help you see your Financial landscape from strategic angle.

He or she will identify not only what is visible like you assets and liabilities, responsibilities and health but also help you see through your Emotional or Behavioral understanding and comfort level with your Financial Landscape. As Emotions do play a big role in our decision making process.

He or she will help you understand what you Want and what you Actually Need and what is the Reality...means the Big picture of your Financial Landscape.

He will chart the path for you to follow which will not only help you achieve your goals but will also save you from taking decisions Detrimental to you.

He will also lay an action plan for you which may or may not comprise of Buying or Selling certain financial products (as per the need ...your may not need any product sometimes).

Also the Financial Planners (Fee only or Fee based take it as their prime responsibility to educate the clients on personal finance...It is one of the Ethical responsibility they assume while being awarded the CFP certification).

Why go to an agent who sells financial product:

The last part, if you are choosing a Fee Only Financial Planner, they will not help you with the administrative job like filling the form and actually dealing in the financial products. Because that would have been the prime reason for you to choose a Fee Only Financial Planner...ie, No association with any Financial Services company hence No Conflict of interest!

So you are left with two options either you can take charge and deal in the products yourself as your Implementation plan is already being laid by your Financial Planner or you can take help of an Mutual fund advisor or Stock broker or Insurance agent or Lawyer or Tax advisor to help you with the administrative job. They do understand the nitigrities of the paper work and also some of them do have sound knowledge of the financial products they are dealing into...in any case you have your Financial Planner to go back to for any suggestion before acting upon finally.

Doing all this will take away a lot of burden off you! Before choosing any of the ways you can get in touch with Clients of Financial Planner or if you choose to go ahead with the other advisors, you can speak to their clients. But even to have these conversation you have to DIY

The second part...Financial Planning is not Investment Planning alone!! Choosing a financial product is the outcome of your financial plan. There may be times when you may NOT NEED any Financial Product at all.