What does ‘Post COVID-19’ future hold for us? Some of us believe there is going to be a happy ending to this tale. Some of us distress over a never ending gloom; and some of us are living each day as it comes. Well, no one knows how everything is going to pan out and all we really have are some wild speculations.
As the economy faces a slowdown due to COVID-19, we advise everyone to get their finances in order! Take care of the following tasks to maintain a sound financial health by the end of this financial year.
1. Maximize your savings
As some of the markets reopen, we are all excited to pamper ourselves a little bit. However, for the coming months, make sure you cut down on your extra expenses and spend more on the ‘needs’ and less on the ‘wants’. In times of economic stress, it is crucial to maximise your savings, keep cash handy and be prepared for any emergency that may befall you. Ensure enough liquidity to help you through the next few months.
2. Buy requisite insurance covers
It’s a virus that has left the whole world upside down. So make sure that this unfortunate disease doesn’t rip you off of all your savings. Buy a health/ hospital cover as well as a life insurance cover for yourself and your family (if you don’t have one already). If you already have an insurance cover, check the coverage it offers and see if it has to be updated to or replaced with a better plan and coverage.
You can also avail tax exemption on the premiums paid against Mediclaim, Life Insurance and other insurance covers, under section 80C and 80D of the Income tax act. Tax benefits will further enable you to maintain higher liquidity.
3. Invest wisely
Owing to this pandemic and unpredictability of its impact on markets, two different points of view on investment are currently surfacing. Many experts have suggested doing away with investing in stocks or mutual funds and keep all the money you can, to yourself. On the contrary, many financial institutions also advocate calculated investment in the market. They believe that since markets have seen their lowest point during this crisis, it is the right time to invest in securities and avail the fruits of it when the market revives again.
A more sensible approach would be to first set aside enough funds for emergencies and invest the surplus. Study the market well and invest with a vision to grow your wealth over a longer period of time.
4. Learn some DIY tricks
This pandemic has taught us the importance of being self-reliant. Use your time at home to learn some ‘do it yourself’ tricks so that you lose dependency on the outside help. For instance, get indulged in family cooking sessions and improve your cooking skills to cut short your expenses on food from restaurants, which will further help you to increase your savings.
5. Keep working
No matter how dispiriting these quarantine days may get, keep the work spirit high. Use this time to up your professional skills and implement those new learning in your work or your new ventures. After all, your skills are your source of income. In such stressful times, allow your work to help you maintain a sound mental as well as financial health.
We hope you sail through these tough times by following these basic financial hygiene practices! Stay Smart, Stay Safe!