The world is reeling under the Corona Virus Pandemic.
Many people are experiencing job losses as companies across globe shut
production. Markets have also shown huge fluctuation wiping our crores of
investor's wealth. Needless to say, people are concerned about their finances
due to COVID-19 pandemic. With so much uncertainty around, it’s important now
more than ever to focus on saving and reduce spending. During this Corona lockdown,
follow some essential financial tips to improve your financial health.
1. Keep Emergency Fund
Emergency is unpredictable and difficult to manage.
The old saying that holds always. Save as much as possible. Maintain a budget.
Avoid expenses that you can. In short, keep an emergency fund.
2. Insurance Cover
Situation and instances like COVID-19 can happen
anytime. Do check that you have proper health and term insurance cover. Check
your health coverage benefits and know how much it will cost you during any
critical illness. If needed, increase the premium amount by taking more
coverage. This will benefit you during a health emergency. Take proper health
coverage for your family. Do an honest assessment.
3. Continue with SIPs
Keep your SIPs. Don't do panic withdrawal. You
never know what is in store for you in future. To keep you financially strong,
keep saving your money by continuing your SIPs and long-term investments. Don’t
panic and redeem all your investments due to the huge volatility in the
markets. Rather, if possible, continue your SIPs, it will help you in creating
bigger corpus when the market’s rebound. Top up your existing investment in
equity using asset allocation strategy.
4. Check your EMI/Instalments
If you have not opted for the banks EMI moratorium,
and not paid your EMIs instalments yet, your credit score might get impacted.
Either you opt for a moratorium or pay your dues on time. Good credit score
will help you in the future loan if needed. Don’t ignore your CIBIL
score.
5. Relook Investment Portfolio
It is advisable to relook at your investment
portfolio and just sell the equity or any holdings which are not giving you
benefit since long. One can sell and buy some good stocks and invest in strong
margins coupled with low debt companies for the long term. Invest for the long
term.
6. Go Digital
As per Government health guidelines we need to keep
social distancing to avoid COVID-19. So, it is better to use a digital wallet
as much as you can. Completely avoid going to your Banks or ATMs for any
financial need and use. Use online banking, cards, UPI or wallets for payments
and managing investments. Avoid using cash, keep ATM visits minimum.
7. Refrain from Panic Buying
Don’t spend your money buying food items,
groceries, medicines just to stock up things due to fear of lockdown. Essential
supplies will continue. Only buy those items which are very much important
apart from daily use items. Panic buying will put a strain on your finances.
