Financial Lockdown?

Being half a month into March, I can't stop thinking about how our lives changed completely last year in this very month!

On 15th March, a lot of cities around the globe went on lockdown which everyone thought was only supposed to last for 2 or 3 weeks, Maximum? But, like it's said LIFE IS UNPREDICTABLE! The lockdown lasted for Months!

This period was very difficult for each and every one of us. While some companies stood strong during this period, We saw a lot of companies collapsing which led to a high rate of unemployment around the globe.

But this pandemic taught some big lessons (at least for me) -

1. SAVINGS - During the lockdown, we all saw that we have the ability to save more but we lack the discipline to do so. I follow the basic rule of thumb - "HALF YOUR AGE". For example - you are 36 years old, you should be saving 18% of your gross salary.
2. EMERGENCY FUND - Let's ask a quick question to ourselves - Did you have enough money saved in case you would have got unemployed or if a medical crisis hit you or your family? Ideally, every individual should have 6 MONTHS’ WORTH OF SAVINGS on hand in case of an emergency.
3. RETIREMENT INCOME - Lockdown was a preview for a lot of people who got unemployed (NO INCOME but FIXED EXPENSES) and for others, this can be a reality check that it could be you next time. After working so hard, DON'T JUST SURVIVE but LIVE YOUR LIFE! The goal should be to have 60-75% of your final salary as retirement income.

2020 is over but that does not mean, this can't happen again! Always prepare for the worst and it's never too late to start!