The year 2020 has proved itself to be a game-changer for many. Thanks to the COVID-19 pandemic, it has hardly hit plans of many people, be it financial, or personal. This pandemic forced them to either change or alter their plans and adjust them with the new way of life that the pandemic has given.
The most unfortunate event that occurred during this pandemic was job loss on a large scale, there are many people who are still struggling with this sudden job loss. People in many sections, holding various positions, be it senior, middle, and junior managers, many found their jobs in a vulnerable position. And as the pandemic is not showing any signs of a slowdown in India, for these people, switching their old job with a new one requires adequate time.
The sad part of losing a job is supporting and managing your finance, and it became more difficult at times of such a pandemic when you are unaware of the exact time of getting a new job. In these times it is advisable to maximize cash balances that would be utilized to meet your financial needs, also your well-drawn emergency fund can help. Most importantly do not break your accumulated investments.
Here are things you can do to build cash savings without putting your long-term wealth creation in danger immediately.
Get Out Of The Non-Essentials
Its high time, you need a revision for all your insurance policies and investments, because at this time you need to get out of all those non-essential insurance policies that are of high cost and low benefits, and the useless investment products. These kinds of expensive policies help no one because the cover for the contingency of loss of life is extremely low and at the same time return on investment is also low. This is the right time to get rid of these non-essential policies, exit from these even if they don’t pay much back.
Also check out your investment portfolio, if they contain old fixed deposits or savings schemes that can be redeemed and retained in cash. Exiting from these nonessential policies and investment products will help you review you monetize your assets.
Time To Change Your Luxury Lifestyle
It's a bit difficult to find ways to mobilize cash but getting out of your frills can help you a lot. Getting out of your frills can be many like selling your second car or your only car and putting a stop to your monthly loan payments will immediately boost cash flows. You can also go reducing your expenses on household staff, doing your work by yourself will help you save money plus will keep you fit and healthy.
You might have various subscription-based entertainment and gaming apps, you can save a lot by unsubscribing them or by not paying the next subscription amount. Job Loss in this pandemic is a hard time, and may it last longer, you need focus only on living a simple life and saving as much as possible.
A properly planned management of your cash and finances can help you tackle all your financial needs over this period of uncertainty where you don’t have any income source. Your proper management of finances can help your cashflows to last out a few months, till then you can think of alternative ways to restart the income flow, or you can also find a good new job for yourself.
For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).