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Recently Jobless and Caring for Hospitalized Father: How to Manage Finances?

Ramalingam Kalirajan |8615 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 12, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Apr 12, 2025Hindi

I've recently lost my job and I'm in the process of looking for new opportunities. While I manage my job search, I'm also facing a situation where my father is in the hospital, and I need to manage both my finances and care for him. I have some savings, but I'm unsure how to balance my financial needs with the hospital expenses and ongoing bills. How can I manage my finances in the short term while looking for a job and dealing with hospital-related costs? Should I use my emergency fund for these expenses, or should I prioritize keeping that fund intact for more severe emergencies? I'm concerned that if I use too much of my savings, I may not be able to cover my basic living expenses if the job search takes longer than expected.

Ans: I’m truly sorry to hear about your current situation. It is tough to manage job loss and a family medical emergency at the same time. You’re showing great strength by trying to plan wisely. Let us now work through this together, step by step, with a simple and balanced plan.

Let’s focus on protecting your savings, handling current bills, and preparing for the next 3–6 months with a calm approach.

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Review All Financial Resources First

• List your current savings, emergency fund, and other funds in bank accounts.

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• Note all monthly expenses like rent, groceries, bills, and hospital costs.

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• If you have any fixed deposits or investments, mark which ones can be broken easily without penalty.

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• Avoid withdrawing from long-term mutual funds unless there is no other option.

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• Create a written note of how long your money will last without any income.

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Emergency Fund: Yes, Use It – But Mindfully

• Emergency fund is made for times like this. You can use it now.

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• Use it first for medical and basic monthly needs only.

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• Avoid spending it on non-essential expenses or lifestyle extras.

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• Try to keep at least 1–2 months’ worth of expenses in reserve even now.

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• You can refill this fund later once you are employed again.

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Cut Down on Non-Essential Spending

• Pause or reduce spending on entertainment, subscriptions, and non-urgent items.

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• Avoid buying anything on EMI or credit during this phase.

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• Inform your family gently about the need to cut back temporarily.

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• Cook at home, reduce travel, and delay purchases like gadgets or clothes.

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Talk to Hospital About Payment Options

• Some hospitals allow part payments or give discounts for cash or insurance claims.

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• Ask them clearly if any help is available for people in financial stress.

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• If your father has any insurance cover, submit all bills properly.

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• If any relatives can support temporarily, accept it as a short-term help.

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Temporarily Pause Long-Term Investments

• If you have SIPs or recurring investments running, consider pausing for now.

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• Most SIPs allow you to stop for a few months without penalty.

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• It is better to pause SIPs than to take a loan or credit card advance.

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• You can restart all investments later once income restarts.

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Prioritise Monthly Essentials First

• Make a list of top priority expenses – rent, groceries, electricity, transport, medicines.

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• Pay these without delay.

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• Delay or reduce less-important expenses like personal shopping, dining out, or travel.

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• If any credit card bills are due, pay minimum amount to avoid penalty.

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Job Search: Stay Active But Calm

• Spend at least 3–4 hours daily on job search and networking.

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• Update your resume, contact ex-colleagues, register on portals.

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• Tell friends and well-wishers that you're open to short-term freelance work too.

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• Any side income like part-time teaching, writing, or consulting will reduce pressure.

Plan For 3 Months, Then Review

• Make a plan for the next 3 months based on the funds you have now.

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• List expected income (even if zero), known expenses, and gaps.

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• Revisit your plan monthly and adjust as the situation changes.

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• Keep written records of expenses. This will help you manage better.

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Avoid Taking Personal Loans or Credit Advances

• This is not a good time to take a new loan.

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• Personal loans or credit card EMIs will add stress later.

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• Use your own cash reserves or ask for trusted family help before using credit.

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Once Job Resumes, Rebuild Step by Step

• Start rebuilding your emergency fund first.

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• Then restart your paused SIPs.

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• Set small financial goals like clearing any dues or saving for 1 month’s expenses.

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• Slowly get back to normal pace without rushing.

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Emotionally Stay Stable and Rest When Needed

• This is a tough phase but it will pass.

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• Take help from friends, counsellors or support groups if stress gets heavy.

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• Take care of your health, sleep, and food. You need energy now.

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• Talk to your child simply and gently. Kids understand more than we think.

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Finally

You’re already doing the right thing – asking for help and planning ahead.

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This phase will test your strength but also show your courage.

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Use the emergency fund wisely. Cut extra expenses.

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Pause investments, keep job search active, and stay calm.

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Even small income during this time will help manage better.

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Once the job returns, you can rebuild everything with more clarity.

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You are not alone. Take support wherever you find it.

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Your family is lucky to have you managing so carefully and wisely.

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Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.