Four money tips for the class of 2020 amid poor job prospects
From offers being rescinded and the date of joining being pushed back to not getting hired at all, the class of 2020 is facing various challenges. "Before COVID-19, we saw growing optimism. Organizations were having forward-looking conversations on potential hiring. All of this has come to a standstill," said Rituparna Chakraborty, co-founder and executive vice-president, TeamLease, an HR solutions provider.
New graduates may take longer to get jobs, find fulfilling profiles and become financially independent, and even longer to support families. They may also struggle with paying off expensive student loans," said Deepali Sen, founder partner, Srujan Financial Advisers. If you're in the same boat, here are some survival strategies for you.
Deal with that loan
If you've taken a fat education loan to pursue that course and are unable to bag the job you were expecting to, you may be in a bind. But settling this issue should be your top priority because having a loan burden balloon at the start of your career can throw your financial life out of gear.
One of the options to get out of this situation is to ask your parents for help. Dev Ashish, a Sebi-registered investment adviser, and founder, StableInvestor.com, said though he's been a strong advocate of not treating parents as a source of emergency funds, these aren't normal circumstances.
TEMPER YOUR hopes
Since these are trying times, it's very important to be more accommodating, especially if you have financial liabilities. There is already a dearth of offers so it's advisable to not negotiate too much in terms of remuneration. "New pass-outs will have to temper their expectations in terms of the kind of jobs and salaries they are offered," said Sen.
Learn to budget
If you've bagged a job that doesn't meet your expectations in terms of salary, you'll have to learn the art of budgeting, so your expenses don't spill-over. Sen said the focus in a situation like this should be on keeping expenses within limits and avoiding things that could land one in a bigger mess. Feel-good and impulsive buying should be avoided, as should taking loans to fill the gaps in cash flows. "It's better to live in a paying guest accommodation or hostel for a few months instead of renting a place. This will save costs," said Sen.
Don't lose heart
There are arguments that the Indian economy may see a sharp recovery but there's still looming uncertainty. Having said this, it's important to not lose heart.
Instead, focus on staying up to date with your skills in terms of what the industry demands. You can also consider taking up some relevant short-term courses until things stabilize.
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