Hyderabad: It’s official. From the International Monetary Fund to the Reserve Bank of India all the authorities and agencies have forecasted worst economic crisis in recent history.
When the economy is in doldrums, job security will be a major issue and consequently, income securities are not guaranteed.
Read more:IRDAI asks health insurers to settle claims within 2 hrs as COVID-19 scare spreads
The major challenge for households and individuals is - how to plan for financial uncertainties.
So, let us explore some of the dos and don'ts and for better personal finance planning.
1. Enhance your contingency fund: As mentioned above, to effectively handle job and income insecurities, it is better to set aside at least 6 months of your expenses, including EMI's, as a contingency fund.
From the current month itself you can start moving every extra or excess money left in your bank accounts post mandatory expenses to a contingency fund.
2. Health insurance policy: Health coverage plans are being offered by many corporates to their employees. So, there is no need to buy separate health insurance for their families.
However, in case if you lose your job, your family's health will be at stake.
So, it is better to have a personal health insurance policy to protect you and your family from any kind of health issues.
3. Say no to new debt: It is advisable to not to buy anything on loan even if it is on zero EMI for the next 12 months as if you lose your job it will become a burden on your monthly finances.
4. Say no to impulsive buying:Post lockdown many business entities will offer huge discounts to attract consumers.
It is advisable to buy only those products which you really need and at the same time keep an eye on your personal exposure like restaurants visit, movies, outings, etc.
5. Be a superhero at work: In coming months, companies may lay off employees to cut costs. So, try to enhance your productivity. This will help you to be in the good books of your boss.
Please remember no company will like to remove its productive employees.
(Written by P Sai Krishna. Author is Hyderabad-based personal finance expert.)
(Disclaimer:The views and investment tips expressed above are solely of the author and not those of ETV Bharat or its management. ETV Bharat advises users to check with certified experts before taking any investment decisions.)
