4 measures to help you cope with financial strain post covid-19 lockdown
In the last couple of months, the world as we know it has not only changed drastically but has turned completely upside down on its head. After all, what only seemed like a scene out of a sci-fi movie has finally transfixed reality! In a nutshell, a virus broke out; more than a million people succumbed to it; and millions of others are still infected.
Whilst, countries across the world have taken various types of efforts to protect their citizens against the corona virus pandemic; however, lockdown is probably the only common alternative that has been chosen by all. Economies around the globe are now at a standstill, and it is us, who have to be ready in order to face the repercussions of the lockdown in the post covid-19 world. Thus, the 4 different measures that will help you reduce the financial strain postcovid-19 are here as follows:
Invest in long-term financial goals
The brunt of corona virus, or as a matter of fact any pandemic is its innate ability to disrupt the flow of life on a global scale. The virus causes a sense of paranoia that forces people to make decisions that they usually wouldn’t under normal circumstances. One such decision is investing in short-term financial goals such as gold, which results in way lower returns as compared to long-term investments such as mutual funds and bonds. Further, just in case, also make sure to double-check your health insurance papers, after all you don’t want to burn a hole down your wallet paying for those over-the-top medical bills.
Repay your existing EMI’s on time
In order to help people cope with the financial burden caused by the lockdown, the Reserve Bank of India has announced a relief measure in the form of a moratorium period. This 3-month long moratorium period is for the repayment of credit card dues and term loans; meaning, you can avoid repaying your banks for a total of 90-days. However, customers must remember that if they choose to opt for a moratorium period then the interest on their borrowed sum will continue to accrue, which either may result in additional installments or increased EMI’s, or possibly both. Thus, only those people who are facing extreme cash constraints should consider applying for a moratorium period. You must also remember that the increased interest rates post-moratorium differ from one financial institution to another; hence, make sure to carefully choose the loan on which you want to avail moratorium benefits.
Manage your funds wisely
Managing funds wisely is something that is troublesome for most of us even during the best of our days. The reason is simple, our earnings are inversely proportional to our spending’s; meaning, most of us spend waymore than what we earn. This problem has further escalated, especially during these rough times of lockdown, when there is barely any source of income available for most of the people. Thus, at such times the only way tomake sure that we are equipped for the post covid-19 era is to minimize our spending’s on unnecessary commodities and avoid hoarding of goods as much as possible. Further, we must also avoid applying for personal loans and other forms of short-term credit as much as possible. If need may arise, pre-approved personal loans should be your go-to option, as they can be availed at way lower interest rates than those offered for personal loans. Other than that, you can also avail financial assistance against your assets such as mutual funds, bonds, insurance policies, etc.
Cut down on unnecessary expenses to create an emergency fund
Coronavirus has not only disrupted our daily lifestyle but has also restricted the much-needed flow of capital across the globe. This in turn will result in major economic repercussions on the post covid-19 world. Thus, the best way to prepare and be ready for any possible economic hurdles in the near future is to create an emergency fund right at this moment. You can easily do so by micro-managing your funds and cutting down on any part of your spending that you deem to be unnecessary. For e.g. even if the idea of ordering food from restaurants may sound sumptuous at the moment; however, you can easily save money by choosing to prepare your own food. Further, you can also save a lot of money by cutting down on your entertainment costs.
Thus, these were the 4-pointers that will help you to cope with the financial strain in the post covid-19 era. Hope you liked reading this article. Good luck and all the best!