Insecure job? Follow these tips to become financially secure

Has the CEO or chairman been sending emails to everyone in your office talking about how difficult things are in the company and that they are planning to downsize? Or have you heard that your job is on the chopping block because your boss thinks you are not performing well enough? Whatever the reason may be, it is not easy living without job security. A job loss means a household's finances go into disarray. If you are someone who thinks that their job is on the line, this is what you should do to prepare yourself financially.

Build an emergency corpus that is equal to six months' expenses. If you have loans, keep another six months of EMIs. It will help you sail through the immediate crisis.

Even if your current employer provides a health plan for you and your family, it is important that you have your own medical cover so that you don't have to pay from your pocket if you face a medical emergency while out of work.

Make sure you know exactly how much you stand to gain in terms of settlement or severance package, cash compensation for unused leaves, portability of insurance, among other things.

If you have an inkling about the impending crisis, have the limit of your credit card raised (but use it strictly only for emergencies) and look for alternate avenues of income.