How do you get thru the Tough Times?

Dear Readers,

Most of us, whether from a privileged background or not, are personally effected by the Covid-19 impact. The impact for the well heeled could range from loneliness/ depression, restrictions on playing golf or business plans going for a toss. For the middle class it would be dealing with potential salary cuts, whilst the cost of living, namely healthcare, childcare, utilities continues to increase. For the daily workers or gig workers or part time employees, it would mean empty savings as the lockdown continues to get extended and a challenge in eking out an existence.

The challenge to everyone is going to impact the wider community and how we are able to get thru the tough times maybe a bit harder than the cliche "when the going gets tough, the tough get going".

If your income is Stable, relook at budgets

• Household Budget estimates can always be reviewed to see where costs could be avoided.
• postpone non critical expenses which may be delayed till market outlook improve.
• review stock/ shares/ MF investment portfolio to see if there is any realignment required. I personally am of the 'Buy and Hold' variety of investors, but when such major events take place it is best to consult your portfolio manager to see if any particular investment needs to be exited
• use the additional time to enhance your life skills- music or musical instrument training thru YouTube, reading on relevant field of interest outside your training (like marketing, finance), online classes for a new language are some options

If your income has dropped, try to reduce costs

• 'Money saved is money earned' so look at the choices closely to see where cheaper substitutes can be used
• Costs normally incurred on cinema tickets, petrol bills and beers with friends is anyways saved at this time so stretch your salary cheque further
• use websites like Upwork to obtain some WFH temporary assignments online

If your income has become Nil, dip into savings

• For gig workers and part time employees whose income has become Nil it maybe time to dip into savings by breaking the FD or PF
• loan from friends and family to tide over rough times is always an option, but be particular (disciplined) to prepare a road map as to how the loan will be repaid

In conclusion, I would say stay positive and chalk out a productive routine.