In a downturn like this the reality of most of us is decreased income this entire year. But this time is also here with less spending’s so amidst the negatives let’s focus at the positives of present time. A bit of rational thinking towards the positive can turn this time of downturn in your favor.
“Remember life is how we make of it”
So much has changed in the lives of all of us. In India the economic crises is staring at us like never before. We as a country are going through a phase which will lead us to a bad economic condition, affecting the life of many. As the country is in lockdown in the last 50 days this has caused a big economic gap for us to deal with.
Life during corona and after corona is not going to be the same. Here are the three ways in which you can turn a situation negative for entire humankind a bit positive for you.
Remember health is wealth, so time in hand, invest in health
India’s public health care system is pathetic, so the state is not going to take care of your health. This simply means medical expenses is going to dig a big hole in your pocket. You may or may not have noticed that inflation in medical expenses is higher than the average annual inflation of the economy. 24 hours stay at a multi-specialty hospital can cost you somewhere between 10-25k equivalent to a 5-star hotel. Plus add the expenses of medicine and miscellaneous expenses.
Also, the older you are the costlier medical expenses gets. With shut down of mobility you have all the time in hand to look after their health. Focus on improving your health so that the cost of health expenditure can be reduced and thus your money could be saved. Focus on eating well and embrace a fitness routine for yourself and your family.
Remember the money saved is the money earned. The less you need to worry about the health-related expenditure of your family the more money you save. You can use this money either to invest or to fill the gap of money flow created due to coronavirus.
If you are saving more than invest more
As we are staying home, we are not worrying about what clothes to wear, filling our vehicles with oil, our regular visits to restaurants and malls, everything is closed for now. That simply means we are saving more, so in case you are saving more then you must invest more.
Check at the end of the month if you have saved more than you expected then invest it. It is always better to put your money at work rather than leaving it ideally to sit in your bank account. Banks are known to save your money they do not make your money to earn more money for you. So, it seems a wise decision to put your money at work.
Clean your portfolio
The sharp fall in market must have made you anxious. In March your equity portfolio fell to approximately 23% though in April it showed a respite and the same index was up at 22%. The respite in market price has given you the chance to clean up your portfolio and get rid of stocks and funds which are of poor quality.
A slowdown doesn’t feel as good as the euphoric times when economic activity is up, but there is always something you can do to utilize the current market environment smartly with a positive impact. Saving and investing are the right choices at all points in time.
Happy Investing!
The mutual fund investment is subject to market risk please read offer related document carefully before investing.