Importance of financial planning during COVID

                   The coronavirus pandemic continues to wreak havoc across the world. Many of us are working from home. All of us are still thinking about our job, Am I secured in my job? Many of us have already sent on leave without pay.

The Stock market as comes down which never happened since the 1987 market crash. our investments in companies have eroded by at least 30 to 40% or even more.to make it worse, Interest in debt markets are also low, SBI itself has reduced the savings rate to a historic low of 2.75 %. Even mutual funds and fixed deposits have gone low.so, our financial planning needs to be updated.

1. First of all, you should build your EMERGENCY FUND,Emergency fund is something like saving your 6 months salary. This might help you with short-time financial crises like(losing jobs suddenly, Health issues). If you had not started, start building your emergency fund now.

2. Keep more liquidity: keep cash in your hands while spending, that one thing you should follow because of COVID 19. don't scratch card for everything, spend by using cash that you may reduce your expenditure.

3. Start calculating your assets, If you have an emergency think what you should sell have an idea of how much money you will get from that. Assets include gold too.
stop applying for a loan against your assets.

4. Stop your unnecessary expenditure, make a list of your expenditure and rank them in order according to your importance, Then cut out the unnecessary spendings at least for 3 to 4 months. (start budgeting)

5. Start planning your Alternatives, If you lose your job think what should you do next, start making side hustles.

6. Ensure you have medical insurance for yourself and enroll your family members too, life is unpredictable.check twice before you join.

7. Stop borrowing money even from friends and relatives is a crucial time, try to avoid using credit cards.

8.read books in financial management like Rich Dad poor dad, Start knowing about money and their uses and growth. (Acquire knowledge about finance)

9. Start saving for your retirement, That you need not depend on your children.

10.Have a financial goal, Have a road map to attain it(make a goal and draw a timeline to reach it)

        TEACH YOUR CHILDREN ABOUT FINANCE THEY WILL THANK YOU IN FUTURE.

Last but not least try to help people who are in needy that too in this time of period give them food and clothing.

Thank you for reading.

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