The whole country is facing the deadly second wave of the Corona pandemic. The second wave is more deadly and has brought more uncertainty to everything around us. We don’t know how many more waves this pandemic will have and how long its impact on the economy and businesses will last, even after the pandemic is over. Such a difficult and unprecedented situation requires a drastic plan of action and immediate decision-making. I want to discuss some things to do and also things to refrain from doing during this difficult time that we are going through.
Need for suggested actions
Many have already lost their jobs or have seen their income drop dramatically. We don’t know how many will be able to keep their jobs given the anticipated slowdown in the economy. The second wave hit us harder. It may even have a more negative impact on the income of employees and the self-employed equally. It is therefore imperative that we implement certain measures to minimize the impact of present and anticipated difficulties.
As the saying goes, “money is king”, therefore, the cash resources must be conserved as much as possible. You should avoid splurging unnecessary and not spending unless it is necessary for simple survival. If you are considering a large purchase like a car, TV, cell phone, or any other expensive electronic item, please postpone it until you are sure the pandemic is almost gone and there is no risk. for your future cash flow. Even if you are considering buying a home with a home loan, please postpone it with the enormous certainty that awaits you.
Create and maintain a contingency fund to prepare for any eventuality in the near future
As prudent financial planning, everyone is expected to have a contingency / contingency fund equal to a minimum of 6 months of your spending, including EMIS which can preferably be invested in liquid funds. This will cover your expenses in case you lose your job / livelihood. It is also useful even in an emergency like a family situation, whether it is a sudden hospitalization or any similar unexpected situation. Those who have already lost their jobs and had a provident fund are doing better today than those who did not. Those of you who have been able to keep your jobs should also set up a contingency fund immediately as the situation is very uncertain and the vicious cycle of economic decline and loss of jobs may last longer than is expected. thinks. I suggest you have a contingency fund of about a year of spending as the job market is very bad and in case you lose your job it will be difficult to get another one soon.
Don’t borrow or overuse credit cards
You shouldn’t borrow unless it increases your income or helps you create a tangible asset. In addition, the money to be borrowed should also be proportionate and appropriate to the occasion and your financial situation. These are the golden rules of borrowing and are universally applicable during all times and more so during bad times. This is because we don’t know how long the bad times will last.
Purchase health and life insurance
Almost all of you have heard of the huge hospital bills for Corona patients. It is suicidal for a person not to have health insurance for themselves and all of their dependent family members. So if you don’t have an existing health policy, please purchase one immediately. If you cannot afford a full-fledged health insurance policy due to lack of funds, at least purchase the Corona-specific “Corona Kavach” policy which is available from all health insurance companies. Corona Kavach covers your hospital costs. This is an indemnity policy where the insurance company will pay directly to the hospital or reimburse your hospital bills.
Even if you already have health insurance provided by your employer or have your own policy, I advise you to take out a “Corona Rakshak” policy which is an insurance policy under which the insurance company pays you the full amount. the sum insured regardless of the planned expenses incurred. you have been hospitalized for at least 72 hours. Since existing insurance policies, in most cases, do not cover the cost of PPE kits and other consumables, Corona Rakshak will cover the amount deducted by the insurance company when settling the claim. for such items.
Like health insurance, it is just as important for a person, who is the financial backbone of the family, to financially protect the family members. And to that end, one has to buy a life insurance policy. Although the cure rate is high, the times are very uncertain in terms of the likelihood of survival in the event of infection. So you should buy a life insurance policy immediately in case you do not have adequate life insurance coverage at the moment.