Trim flab, tighten belt
With the GDP growth numbers worse than expected, individuals will need to tighten their belts and curb non-essential expenditure in order to meet any challenges that might come in the form of shaky jobs, salary freezes or little or no increments.
“Don’t panic,” says Surya Bhatia, a Delhi-based financial planner. “Cut down your expenses and maximise your savings.”
“Build a contingency fund that can sustain your family for a period of over 12 months,” said Amar Pandit, a Mumbai-based financial planner. “If you are earning Rs 100, consider that you are getting only Rs 80 for your use and put the rest in a contingency fund.”
With falling GDP numbers, concerns are up on salary hikes and a scenario of job shrinkage is growing. Experts feel in such a situation even as inflation is down, consumers will have to do the assessment of their income prospect and will have to accordingly curb their expenditure.
“Control is good and cash is king at this time,” said Lovaii Navlakhi, MD, International Money Matters. “Cut on non-essential expenditure without getting into the mode of feeling dejected,” said Pandit.