The world is shaken by the coronavirus pandemic, and a cloud of uncertainty has set in, causing
anxiety for everyone. In these stressful times, taking care of your physical and mental health,
protecting your family and providing for their basic needs are probably at the top of your priority
list. At the same time, it is essential to look after your financial health. Here are 5 ways to cope with financial problems in the crisis:
These times of uncertainty are here to stay for a long time. So make sure you have your expenses planned out for at least 2 years. Try to limit non-essential expenditure, and avoid panic-buying to prevent a strain on your finances.
In times like these, we can only expect the unexpected. So we must prepare for the worst. Make sure you have proper health insurance and a term insurance cover to protect yourself and your family. Set aside an emergency fund for unforeseen circumstances.
Read more on budgeting here: Importance and Tips for Budgeting
This pandemic is taking a hit on liquidity. If you are facing a cash-crunch, try to liquidate your assets. Ensure you have sufficient liquid cash for your expenses for a few months.
However, while seeking liquidity, you must be careful. The RBI has announced a 3-month moratorium on term loans and credit card dues to help tide over the liquidity crisis. But you must be wary before availing these perks. You must take into account that interest will continue to accrue on your debt and it will lead to increased EMIs or additional instalments. If you can arrange the payments, do not opt for the moratorium.
The recession and stock market brought in by the coronavirus crash has created a widespread panic among investors. However, we must realise that the high volatility is due to the contagion of fear, more than anything else. So do not redeem all your investments in a panic. You never know what is in store for the future. It is important to stay financially stable
Keep up to date with all information released by the government and the RBI. The government and the RBI is trying to help businesses and citizens to get back on their feet. There may be something in the numerous announcements that may just help you. The tranche 1 of the Rs 20 lakh crores stimulus package includes funds for MSMEs, liquidity schemes, reduction in EPF rates, among many other things. Further, there are several credit schemes such as pre-approved loans and advances against financial assets that may help you.
Take Financial Advice:
It is difficult to predict what may happen in the future, and how it may affect you. So stick to the advice given to you by your financial advisor. Do not experiment with investments. There are experts who are constantly analysing and trying to understand the situation, and can give you the best advice on handling your finances.
Lastly, stay calm and be patient. With proper planning, you can deal with financial problems in an effective and efficient way.
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