The word “Normalcy” feels quaint in 2020, and many might omit it this year, owing to the impact of COVID-19. The spread of the virus has destroyed several sectors and industries across the globe finances. A perfect recipe in the making for a global recession on the brink of turning real! All through these six to eight months of uncertainty, distress, global lockdowns, restrictions, slowing down the virus spread has been a critical task.
While there are economic consequences associated, one sector that tremendously rising during this pandemic and has been setting high records is the Stock Market. You are lucky if you earn big even in these tough times. Whichever sector gained or lost, from an individual perspective, what matters is the correct and timely planning of your finances.
As you know, with all victories come silent sacrifices that aren’t easy to ignore, and these are the people of different countries (not only frontline workers but the common man) and their economies. However, the financial impact that hit people during these times is quite significant and has affected their lives adversely.
The Situation in Different Countries
Lockdowns being imposed since March 2020 for several months in various countries was not less than a quiet disaster waiting to happen. Of course, there were challenges ahead!
No doubt, initiatives have been taken by the Governments to curb the spread of this deadly virus. But, some sectors like farming, construction, manufacturing, restaurants, hotels, airlines, and a massive set of other businesses were amongst the worst to be affected. The impact of Coronavirus could be felt really hard by them! With no or reduced income sources, the unemployment rate slowly grew in different parts of the world, with a huge number of people still being unemployed.
Several businesses have shut down, workers are looking for jobs to support their families, and the private sector has been drastically affected. However, a few countries have started implementing the “unlock” phases while easing out the country’s restrictions slowly. A sigh of relief for many!
Gradually, through the different stages of re-opening, people are getting the hope of kickstarting their livelihoods, and the governments have brought in several programs to help the needy & deserving. But, is that enough to ease people’s lives and bring normalcy back?
Now, a big question arises: Are You Emergency Ready? Or are you prepared for a financial downturn? If not, it’s high time to review your finances and gather some useful tips.
Review Your Finances: Be Financially Ready
Within a short period, the lives of everyone around the globe entirely changed. It crushed the emotional & financial stability and knocked us entirely without any warning.
However, to prevent ourselves from any such similar situation affecting our well-being, specific pointers must be kept in mind while safeguarding us through our financial planning. A lesson well-learned!
1.Plan Your Savings
Keeping some of your hard-earned money for emergencies does support you in such uncertain situations. It comes of great use when you need to meet an urgent financial liability. However, it is essential to divide your earnings equally and fulfill the needs at critical times.
Savings can be utilized to clear off your debts. So, open a savings bank account or high-interest account in reputed banks offering better interest rates annually.
2.Grab a Good Insurance Policy
Protecting your life is another valuable point to keep in mind. And, this pandemic has taught it well! So, choose the right medical insurance, immovable/movable asset insurance, and others. Read all the terms and conditions carefully as they are responsible for protecting your life and serving as a necessary aid during emergencies.
For the same, a small amount is required to be paid to the insurance companies annually. Consult your insurance agency for additional input on the right insurance for your lifestyle.
Investments are of various types. Whether you are looking for a long-term or short-term goal, these investments can prove vital for the growth of your hard-earned money. If you are looking for a long-term investment, then investing in gold could be a feasible option. The investment in the stock market and commodity trading comes loaded with risks, but can give significant results if done systematically.
4.Pull down Your Expenses
Expense is one of the biggest threats to any kind of savings. Afford what is feasible for the salary that you earn in a periodic month. Having a flamboyant life paves no yield when trying to get your savings and financial reports to the green zone.
Moreover, ensure that you have the practice of rechecking your finances every 2-3 months and divide your earnings statistically into extras and essentials. Try to cut as much as possible from the extras and add that into essentials for a better savings tactic.
For a common man whose life is based on a mediocre salary, it’s always a better option to focus on savings and insurance to safeguard them from any future pandemic.
Have a defined goal, and ensure that you work hard to earn it. The ongoing pandemic has changed our lives entirely, but the prime aspect is to enhance our mental stability and come out strong. Further, wisely planned and well-managed financial support can push us out of these tough times with ease. Don’t you think so?
And, beware the virus is still floating freely, so we need to be extra cautious. Stay safe and stay healthy. And, be confident to grow up financially once again!