10 valuable lessons the pandemic has taught us

1.???Have an emergency fund –As per the Thumb rule you need to keep aside at least 3-6 months of your monthly expenses. Depending on your monthly expenses and your current lifestyle you need to decide how many months of expenses you need to keep aside as an Emergency or contingency fund either in a liquid fund or savings account to take care of you and your family.

2.???Manage your Cashflows well – You need to learn to be Financially Smart and disciplined too. If you take a good look, you can surely save more than you think and get more responsible at spending.

3.???Manage your Risks well – Health Insurance is very important not just for you but all your family members. Get all your family members covered under your Employers' Group health insurance scheme if you have been given the option. But don’t just rely on your Employers insurance, take individual health insurance too. If you are one of the earning members of the family and have liabilities like a home loan, business loan, etc. take adequate Term Life insurance too.

4.???Manage your Debts well – If you have a couple of loans and EMI's – first list down all your debts with the o/s amounts payable and the rate of interest and check where the interest rates are higher and need to be repaid especially the personal loans.

5.???Have your Plan B ready – Your future income may fluctuate and you need to have a Plan B at all times. Retirement plans need flexibility too. Have a side hustle by making use of technology and your skills to create new income streams.

6.???Asset Allocation is the key – Diversify your investments based on your Risk Appetite, Time frame, and Goals. It’s time in the market that matters not timing the market to grow wealth.

Divide your money into 4 bucket strategies –

Short-Term Bucket – Up to 1 year- Savings, FD's, Liquid Mutual funds, and Arbitrage Mutual funds

Medium Term Bucket – up to 3 years – Debt Mutual funds

Intermediate-Term Bucket - 3 to 5 years – Debt & Balanced Mutual funds

Long-term Bucket – 5 years + Diversified Equity Mutual funds

7.???Create your Will - Make a note of all your investments, your health, and life insurance policies and keep them updated. Share it with your near and dear ones or a Confidante. This will come in handy in case of an unfortunate event or in case of any illness, etc. Also, keep a note of your passwords, etc. and keep it secure and use a locker for all your important documents.

8.???Health is Wealth – If you have been putting off taking care of your health for a long time, now is the time to invest in your health both physical and mental health.

9.???Invest in learning and in your own self. Upgrade and update your skills. Read more books, take up online courses and equip yourself with relevant skills.

10.?Remember – This too shall pass – Good times and bad times don’t last forever. Focus on living within your means, achieving and maintaining a healthy lifestyle, and take charge of your own financial life. Plan well and build your own Financial Freedom Blueprint.

Subscribe to my YouTube channel to continue your learning journey and do write to me about what content you want me to cover.

Also, don’t forget to Check out my online course – My Financial Freedom Blueprint to build your own Financial Strategy.