How to tide over pay cuts and layoffs amid covid-19
Cutting your discretionary spends and managing liabilities can help you sail through
You may be tempted to take a loan to tide over the situation temporarily, but that could pose a problem later
Bengaluru-based Deepayan Mallick, 27, finds himself in a tight spot due to the ongoing covid-19 crisis. He was forced to take a 20% salary cut, effective March, which means he got a lower salary at the beginning of April. With 60% of his salary going towards education loan and other EMIs, and fixed expenses such as rent, he is using his savings to bridge the gap in his cash flows, but he fears his savings may run out soon. “I don’t want to defer paying my EMIs because that will be more expensive in the long term. I think I’ll have to fall back on my family if things don’t normalize soon," said Mallick, an account manager at a content marketing firm.