Avoid emotional stress by preparing for retrenchment

All the proceeds or excess from rationed budgets should be channelled to build or replenish this cushion.

Secure a medical cover

Ensure you have a medical cover sufficient to cover your family needs if you have never had one before. Most employees rely on the group covers . The medical cover would help cushion you and your family from medical expenses that would befall you after the retrenchment.

For your life insurance covers, you can consider paying your premiums several months in advance to safeguard your cover from lapsing due to default in premium payments.

You can make an arrangement with your insurer for a paid up provision where you can continue to maintain your cover without paying premiums for some time but at a reduced cash value.

For other financial obligations such as paying your mortgage premiums, you can consider discussing an arrangement of either prepayment or exemption as you seek an alternative source of income to safeguard you from foreclosure.

For your post-retrenchment preparations, you can do the following.

Start by keeping your financial windfall or retrenchment benefit away from your emergency fund.

Stash your emergency fund in liquid securities or cash deposits which are easy to access.

But for the financial windfall, stash in securities with reserved access to avoid any temptation of cashing in.

Do not rush to venture into a business without thorough feasibility study. If possible seek part time jobs as well as permanent jobs as you take your time to identify a suitable business venture.

Do not invest your emergency fund expecting some quick returns otherwise you would invite unnecessary distress.

Have a blessed session with the counsellor!

Mr Opiyo is an employee financial advisor and coach.