The world wouldn’t have experienced such a situation of being in lockdown for months. Each one of us have been tackling this widespread cause of COVID-19 in our own manageable ways. However, this lockdown gave us menace to recapture and brush up certain facts in life. Few important things people learned are work-life balance and more importantly, the value of life.
Besides, one of the most valuable lessons to come out of this has to be their relationship with money and how we plan for life’s indecisions. Definitely, people were not prepared for the lockdown, and it has influenced finances and investment in a great way. But by having a powerful and complete plan in advance, they could at least assure that they are safe, financially. A possible fund for such uncertain times is required, undoubtedly. Financial planners suggest building an emergency fund with a validity of 6-9 months, of their expenses including EMI. An investor can start investing with a formal account in a liquid fund through SIP. Liquid funds enlarge the advantage of risk-adjusted returns along with basic principles of availability while maintaining a healthy possible fund. Hence, it may be considered intelligent to park your surplus funds and start a SIP to build a contingency fund. However, while planning such a move, the exit load structure of the venture is also to be considered.
Next has to be having an ideal life and health cover. Hence, due to the rise in medical costs and an erupt of lifestyle diseases, health insurance is very necessary for every individual. When it comes to investing, one should look at a well-assorted rising price-beating portfolio. For investors having a long term goal, investing during a market decline is a perfect master plan to achieve maximum well-being. It is always suggested to hire a financial advisor who would help develop a plan as per the goals and objectives, risk desire, and time horizon. The lockdown has taught us about spending money wisely, saving more money, engaging in budget exercises, and basically leading life. People have realized how easy is to save money if they can bring in a bit of discipline to things they could do without. Another crucial lesson learned by people is to never over-borrow. It is necessary to limit the borrowing to minimum debts by making maximum paying up as much as possible.
Normally, people swedge over saving enough for their families but don’t necessarily notice basic financial hygiene, to intensify that their descendants and loved ones are protected and have access to their savings and investments without a struggle. The simple precaution of mentioning a nominee for financial assets will protect that the assets don’t remain locked in the indictment but go for descendants or persons to trust. Devising a registered will is also of enormous importance in financial life when looking to simplify their planning for the future. In the end, lockdown taught us the importance of being digitally sound and switching to digital approaches, to keep on investing.
