INSUBCONTINENT EXCLUSIVE:
The second wave of Covid-19 is truly upon us and is likely to influence the way we work into the future
Though the pandemic has created overwhelming fear, what's causing even more anxiety is the resulting financial pressure arising out of
this situation of uncertainty
With crores of people being furloughed, incomes have taken a huge hit
Even the lives of those who haven't lost their jobs have changed completely, with work-from-home becoming the norm for many
As a result, the financial setup of many people may no longer match their needs, and finding a way forward can appear impossible
But with a realistic plan, it is possible to navigate this uncharted territory
Here are five ways to go about it:Revisit Your Finances And Prioritise Your GoalsWith economic activity taking a hit, your income and
finances, too, may have been hugely impacted
This would have put a lot of pressure on your monthly expenses, premiums, etc
As a result, you need to realign your financial goals to ride out this crisis and get through relatively unscathed
Download your bank statements, and look at where your money is going and what's coming in
That will give you a fair idea of your true financial position, and help you create a realistic budget to move forward
Review your expenses along the way.Find Out If Your Bank Can Offer Some RespiteIf you have lost a source of income, you could approach your
bank for some support or leniency in terms of loan repayment to tide over the tough phase
Find out if the bank has loan pauses or freezes for temporary relief
However, before that, make sure you have a plan for how you would catch up on missed payments because a pause on the loan will not prevent
the interest from accruing on the outstanding amount.Don't Take Hasty Decisions, Be PatientSoon after the coronavirus pandemic broke out in
India, the stock market took a hit in March last year, creating a wave of panic among investors
They either withdrew their investments or halted their systematic investment plans (SIPs), fearing further market collapse
The key here is to be patient
If you don't need the money for immediate use or are fortunate enough to still have your job, continue investing small amounts of money in
different equity funds in a staggered manner.Start An Emergency FundAn emergency fund, which can be easily liquidated, is essential in times
Start setting aside a certain portion of your income now, if you can spare
You need to ensure that the emergency fund is capable of taking care of your expenses for about a year at least.Be Prudent When It Comes To
LoansReview your loans and other debts, and reduce your dependence on those
Though some loans such as those taken for housing or education are necessary, never fall for loans to fund your lifestyle
Check out new products in the market that could better suit your financial needs
If need be, switch your loans to another bank if they offer you better interest rates
Only if you have sufficient liquidity and a lot of surplus money, this would be a good time to use some of it to pay off your high-cost
