You know how some people get so paranoid about contracting terminal diseases that they change their entire lifestyle to avoid them? That is me when it comes to retrenchment.
My paranoia began when one of my closest friends went through the same thing at her previous company. She was given just a month's notice to look for another job and received only two weeks’ salary as severance.
During that time, I saw my friend transform from a cheerful, carefree person into a stressed and overwhelmed adult. She was only at the start of her career, so she did not have much savings to fall back on. On top of groceries, she had to pay rent, utilities, and her father’s hospital bills. Without a steady income, she could barely survive the two months of job hunting.
Thankfully, she found a job before her savings completely ran out, and she didn’t have to go into debt to cover her expenses. However, her experience made me feel more aware of the painful consequences of suddenly losing your job.
Just imagine the shock she must have felt, losing her income overnight when she had no support or emergency funds.
New fear unlocked: the possibility of retrenchment
That fear pushed me to start making better financial decisions, especially with retrenchment cases on the rise.
I began placing more money into my emergency fund. My goal was to have at least four months' worth of expenses, so I would have more breathing room if I ever needed to job hunt.
I also made it a point to update my CV every three months by adding my latest achievements and skills. That way, I would always be prepared in case I got laid off.
I even went so far as to read up on retrenchment policies and labour laws to fully understand my rights if I were ever involuntarily terminated.
Yet, even after all these precautions, my fear of being suddenly laid off has not subsided. It’s terrifying to think that your steady income could disappear with a single announcement.
At the end of the day, we cannot control how life unfolds. The only thing we can do is to have a backup plan and hope for the best.
This article is part of TSS Confessions, a weekly column where we delve into personal finance topics that are unscripted and genuine real accounts from people.
