Due to the sudden spread of COVID 19 resulting in lockdown, business closure, layoffs, and massive unemployment, the world counters time like never before. Instead of spending time anticipating future, confusion, and fear, we need to navigate through tough times and take a stake in the situation in time.
Some fear the deepest recession while others are struggling not to get layoff. The uncertain time has a severe effect on the financial health of every individual. Consequently, things like tax payment, loan repayment, mortgage, losses in business have all accumulated, straining individuals. Possibly this crisis puts forth us the paramount challenge of protecting subsisting credits to tackle the past also prepare for the longer term. We have all heard of ‘Prevention is better than cure’; the primary approach is to keep a view on the existing money. We need to think twice before spending. While we beat through the present, the future is uncertain. Until the economy rebounds, the key to survival is the reduction in non-compulsory expenses and enhancing the frugality.
Being the pandemic situation led to the closure of business and layoffs, there should be continuous efforts directed to liquidate assets and investments in an orderly fashion. This could help to achieve short term money needs.
Avoiding loans against assets might not fetch yields as liquidation could procure. Debts could add on to the persisting miseries and cause a financial catastrophe. On an identical note, fighting shy of using credit cards and switching to debit cards could also help to ease out situations within the long-term.
In such a critical situation, having a life and health insurance would also be crucial. Continued coverage is critical for an individual and family. Improving on already existing policy with compulsory health insurance could help fight credit perils within the worst-case situations. Having a term plan for financial dependents could leave them with sufficient cash reserves post your demise.
Avoiding fear can help add ongoing losses. In such times, investments need to be done with a clear mind in line with financial goals. As investment depends on the person but long term investments are advisable for higher returns, to tolerate ongoing volatility as good firms expect to perform better post COVID. Gold investments would be a ready preference to counter the crisis cyclically.
As the vaccine is on the development stage, there is no definite answer to the viable remedy to Covid-19, and the current situation could drag ahead the next few months. For the sake of floating through even though the situation worsens further, a stitch now could help circumvent a dire financial crisis of the long run.
