The world is struggling with the coronavirus pandemic. Many people are experiencing pay cuts and even job losses due to halt in the business operations worldwide. Markets have shown a huge dip and this economic slowdown is impacting everyone at some or the other level.
Thus, it goes without saying that people are concerned about their finances due to coronavirus lockdown. With so much uncertainty around, it has become essential more than ever to focus on reducing expenses and even saving some funds.
Here we are writing some proven ways that one can use to improve financial health during the lockdown.
Review your budget
May be you are experiencing a pay cut in your monthly payments or a declined earrings due to COVID-19. So, it is recommended to do a rigorous budget review. During the lockdown, there is a huge possibility that you are able to save on fuel, eating out, entertainment and parking. You might be having expenses like gym members and other subscriptions. So, at the time of reviewing your budget, consider these expenses and costs.
Avoid panic buying
Don’t spend too much on groceries, food items, medicines etc. due to fear of lockdown and just to stock up things. Only spend on buying those items which are actually essential. Panic buying will disturb your finances. Also, supply of essential goods will continue.
Don’t stop your SIPs
In tough financial times the first thing that people think of to cut down on expenses is to stop their investments. Don’t do that. Also, don’t do panic withdrawal. Future is actually unpredictable and in order to keep yourself financially strong, keep saving your money by continuing your SIPs and long-term investments. Don’t panic and withdraw all your investments due to volatile market conditions.
Go through your investment portfolio carefully
It is suggested to go through your investment portfolio carefully. If you see that any of your holdings or equity are not giving you any benefit since long then you can consider selling them. Consider investing for the long term especially in strong margin companies.
Check your installments/EMIs
If you are not paying your EMIs and neither have opted for the banks EMI moratorium, then remember it may impact your credit score. So, either pay your installments on time or opt for a moratorium. Remember, good credit score is important for future loan approvals. Don’t overlookyour CIBIL score.
We hope you will find these tips helpful in tightening up your finances and ensuring that you have enough savings to sustain in these tough times.