Navigate Through The Current Situation Smartly. Don't Panic!

Navigate Through The Current Situation Smartly. Don't Panic!

The onslaught of COVID-19 has brought the entire economy of the world at a standstill. Businesses are shutting down and people staying at home has pulled down the productivity, thus taking a hit on the markets. Day in and day out, the news channels keeps posting the rising number of cases of coronavirus. The more the number rises, the more it leaves people scrambled about how will they manage their finances.

Just the way we prevent ourselves from contracting the deadly virus, we must take few steps to prevent ourselves from contracting a financial hit in this unsteady market.

  • Analyse the funds in hand

Monitor the funds you currently have and track your cash outflows. Try to maintain adequate amount of liquidity ready, this will help you to sustain for at least 2-3 months. The situation might get worse in coming days, so buckle up in advance before taking the fall. Start saving as much as possible. Trim down on your irrelevant expenses and put it to some good use.

This will help you navigate through tough time and put your money to good use.

  • Don’t make impulsive decisions

Avoid having any knee jerk reactions, this will directly impact your long-term financial goals. Yes, the markets are highly volatile in nature right now, but this should not hamper your investment decisions. Don’t discontinue your long-term investments. For instance, if you have been investing through SIPs in mutual funds for your 5-year goal, repress yourself from making any withdrawals at the moment.

Markets are going through the downtrends but that does not mean it will stay in the bear phase forever. Rather look at it as a good time to invest; but make sure to harness yourself from investing heavily.

  • Build an emergency fund

You might already have a contingency fund locked in for at least 6-months period. Looking at the rising tensions amidst coronavirus outbreak, try to enhance your emergency fund by rising it up for at least 8-10 months. This will help you in case of any loss of income that might arise in future due to the coronavirus pandemic.

Also, this will help you to minimize the dependency on the funds that you cadged from your loved ones. It is better to be prepared then fall flat on your face.

  • Use the time in hand

The lockdown due to the pandemic is providing you with ample amount of time, so make good use of it and analyse your finances. Thoroughly track your investments and check ways to realign your portfolio.

You can increase your investment in some of the less risky options such as NPS for your long-term goals – Retirement fund. This will save you from the volatility of the market and build funds for your future.

Don’t panic in this stressful situation. If your finances are in place, you don’t have to worry about any crisis that might take a hit at you. Make this situation work for you, and help yourself from all the financial eventualities. Remember, if you are financially well off, you can protect your loved ones from any uninvited situation. Stay at home and stay safe!

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(Disclaimer: The details and investment tips expressed by the expert in the article are his personal views. We advise you all to check with your certified financial advisors before taking any investment decisions. Investments in securities market are subject to market risks, read all the related documents carefully before investing.)

 

Right said sir

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