What to do if you were fired? Part 1

January was when all American firms gave out their bonuses usually. There has been a lot of restructuring going on in Hong Kong, especially in the banking industry. Citi announced to cut 30% of its staff globally. Tech firms in the States are streamlining its organisation as well.

I can foresee that restructuring in the future will happen more regularly and frequently.

Last Friday I was having happy hour with my friends and he told me that his friend who is around 50 years old got fired at one of the American banks.

Even though he had severance, I felt bad for him because he has to family to take care of including his children and his parents. Also, at 50 years old, as we all know, it will be extremely difficult to find a job in management. Part time might be easier but whether one can forgo his/her ego to take up a lower rank job is another issue.

Because of what happened, I took the weekend to think of "What if I get fired next week or when I am 40 or 50?" and here are my thoughts. I would love to see what readers have in mind as well.

1.Always prepare for an emergency fund of at least 9 Months

People always say it is ideal to have 6 months. I disagree to a bit because the recruitment process in Hong Kong slows down a lot due to our slow economy. Also, I am quite conservative when it comes to financial decisions. I would feel more secure finding jobs when I can sit on my 9 months of emergency fund. Maybe I will travel for 1-2 months then start job hunting in my 3rd month.

2. Have multiple sources of income

I have always thought of retirement when I reach 35 years old. However, what I am chasing after is freedom rather than having no work to do. So I recommend everyone to start their side hustle/hobbies after work that can also generate income. Because (touchwood) if you get laid off at 45/50 years old, you can still work on your side income or maybe invest full time on it.

Ever since I graduated from university, I have been investing in dividend stocks. I remember falling sick last month because I caught URTI and it took me 2-3 weeks to recover. It was the first time that I felt helpless because I was in my bed and could not make money/commission.

Hence, when I received dividends last month, I felt more comfortable because I know (touchwood) I do not need to rely solely on my salary (tho my passive income was not a lot. I am hoping I can be financially free before 35 years old)