Don't Panic & Get Organised: Typically, your hard-earned savings come out when you get laid off. The leave encashment that monetizes the leaves you never took, Provident Fund (PF), which was part of your cost to the company (CTC), gratuity, and maybe a few months' basic pay in case you are lucky. Only top employees like the ex-Twitter CEO has the privilege of falling back on a fortune of millions of dollars. "In case you are among the former, the first thing you must do is not withdraw your PF. If you haven't retired but are just switching a job, 'don't panic' are the magical two words you need to remind yourself, especially if you have huge equated monthly installments (EMIs) hitting your bank account every month. First, draw out your list of monthly outflows. Let's call this amount X. Now add up all your current savings, fixed deposits (FDs), mutual funds, stocks, ESOPs that have vested, etc., along with the cash you just received from your company upon being laid off. Let's call this Y. Now divide Y by X. If this number is above 24, there is no need to worry. All you have to do is to take a week or two off and start preparing for your next assignment," explains Chenthil Iyer, founder and chief strategist of Horus Financial Consultants.
Consider the situation of a movie star who just finished shooting for a movie and has gone to the Maldives to chill out for a few weeks, only to come back and be on the hunt for her next assignment. "If the number is more than 12 but less than 24, you may still take a week off but have to start prepping for the next assignment almost immediately. Only if that number is less than 12 do you need to worry a bit. If you try sincerely, you should get your new job within three months. If you are in the last category, I would advise you to compromise on the position and salary in the next job as your survival may be at stake. Otherwise, you may be patient enough to wait for an appropriate role," adds Iyer.