Are you prepared if you are being ask to leave?

The recent market outlook had shown indication that we are heading towards technical recession due to the oil price slump crisis and the slowdown of the China's economy. Some companies that I had heard of, is starting to retrench their staffs to cut down on labour costs to keep their business expenses down. If that happens to you, are you prepared to go without a job for at least 3 to 6 months? Do you have enough savings or emergency fund to tide over this dark period?

Some of my colleagues and friends are not prepared for it. They always could not meet the month's end due to their family commitment and also they are not prudent to save when they received their bonus or increment. They will usually spend it on holidays or splurge on themselves or with their girlfriend/wife on a nice dining to relieve their stress on work and also to reward themselves for the hard work they had done.

It is always good to save and have an emergency fund. You will never know when you need it. You could be retrench or meet an accident and lose the ability to work. Once you have an emergency fund, then I would say, you are prepared. In the event, you are retrenched from your company, you can still have some savings to tide over the period and meanwhile trying to look for another job.

Create another fund for retirement or investment, make use of the fund to earn passive income from investment. By investing for income, at least the savings you have for this fund can beat the inflation rather than keeping it in the bank.