Novel Coronavirus or COVID-19 is the pandemic spreading worldwide and leaving panic and uncertainty in its wake. The countermeasure to curb the spread of the virus (lockdowns and shutdowns) might have done more harm than good because the entire world is on the brink of a recession.
Many people have lost their jobs and means of earnings during this period. Many startups fizzled out of existence. COIVD-19 has been especially hard on the ones who were struggling financially.
We live in unprecedented times where money could be the only determining factor between life or death. It doesn’t take a Banking and Finance course after graduation or someone in a Finance career to figure out the importance of managing funds.
To help you on this front, we have listed some really excellent tips which should make your life a bit easier while battling a rampant pandemic.
Tips for money management:
Need to have a rainy-day fund:
Having a rainy-day fund is especially important in these times. Not only would it be able to help you in case something were to happen to your livelihood but it also would help you in case of any contraction of this virus in your family. Plus, for any medical emergency during this period, it would help to save up a little.
Ideally, you should have enough money to last you about six months or a year. You could choose savings funds, Fixed Deposit, or any other form of capital investment.
Having a stable life and health insurances:
In such times you should be prepared for the worst. Hence, you should not skimp on your life or health insurance because anything could happen. If you happen to have a term plan, make it a habit to pay all the premiums on a timely basis. Also, talk to your health insurance provider regarding the current health situations and how the insurance would work in this pandemic.
Your health insurance should come to your rescue in case you contract this virus. You would be able to save up on a good chunk of hospital expenses with the help of your health insurance.
Do not take blind loans:
You should be extremely careful with the money you borrow from others because anything can happen. We suggest that you should avoid any and every sort of loan. Only if it is absolutely crucial, then only take out a loan.
Try to be extremely careful with your expenses. If you absolutely need money, try using other funds (something that is non-essential) first before taking a drastic step of actually taking out a loan.
We hope that we could provide you with some tips and tricks that should help you save money in such uncertain times. The best strategy in these times would be to remain calm and level-headed and maintain your composure. Proper money management is essential during this period.