Exercise strict budget*
*No conditions apply
The COVID-19 crisis has disturbed finances in substantially bizarre ways. Daily life is on a standstill; most businesses are struggling to remain afloat in the pandemic-stricken world. Almost all sectors of the market have been hit by demand and supply shocks. But it is only the hard times like this that give birth to new and innovative solutions.
It would be best if you get some tips to make a bond between your finances and the Pandemic.
Say hello to Cash:
Lockdown has undoubtedly let us revise the importance of essentials, or let’s call it we are back to basics now. So in a scenario when there is no surety about the next paycheque/profits, it’s better to continue this way and save for the rainy days. The focus should on preserving Cash in your pockets and stay liquid Jot down your expenses and see if bells and whistles like a club and restaurant memberships can be eliminated.
Borrowings might bother:
Remember, in not-so-easy times, borrowing is easy, but repaying is not.
These days banks are keen to offer loans on attractive interest rates but don’t get swayed away. Recall one of the principles of financial well-being – balance income and expenses and don’t borrow if you can’t repay Try managing expenses strategically and ease some burden from your shoulders. If necessary, mortgage some of your hard assets (mainly gold). Prioritization is the key.
Don’t stop essential investing
The human mind won’t ever believe that one has enough money to save and invest. Don’t go by intuition, but instead do calculations and start saving and investing money. With the Pandemic killing the economy, a wise takeaway would be to diversify your investments among low-risk options. Not placing all your eggs in one basket will distribute the risk.”
Health is wealth – insure it.
Compromising here is not at all advisable at this time. We hope everyone stays alright, but adequate protection is the need of the hour. If you have a term plan, make sure you are up-to-date with paying premiums timely to avoid any policy lapse. Life insurance will be the savior of the dependent family member during inexorable events. On a similar note, ensure you have a medical insurance plan for your dependent family members and yourself, with a coverage amount of at least Rs 4 lakh to shield your money from getting drained in sky-scraping hospital bills.
In the end, the best investment is to invest in yourself. Consider upskilling and learn something you have always wanted to. Now is the time.