We all are facing unprecedented occurrence of Corona Virus Crisis. Our government, healthcare system and all people from essential services are working 24*7 to fight against this. Lockdown asks us to stay at home for our own safety and safety of others too.
During this period, we all are doing many activities right from cooking to painting. We all have tried hands in many new activities also. But while doing this, two things are on our mind all the time- First is, our safety and good health and another is our ‘financial wellbeing’!
Current phase has affected economies world over and we are no exception. Many questions come up to our mind like when markets will recover? What if there is a pay cut? How we can recover business losses?
When whole scenario is gloomy, we can still be positive and restructure our ‘personal finance’ in this free time that we have got due to lockdown.
I am going to share with you three simple activities to initiate-
- Introspect and study:
When we introspect any particular thing, we get a new dimension to look at it. This time lets introspect about our personal finance elements.
For this, take out all the records of your investments, details of your insurance policies, details of your assets and liabilities, loans given, banks a/c details, details of nominee in every investment and insurance etc.
List and make one comprehensive record of all these scattered elements. You can safely save them in your computer system also.
This comprehensive record will give you a clear picture of your personal finance.
You can identify your liquid and illiquid assets and investments, where and how have you deployed your money so far.
To take any action, we must have clear idea about it.
- Review :
It is simple! In this stage, ask questions to yourself.
Ask and find out, whether you have enough ‘emergency corpus’ on which you and family can survive for at least a year; considering this crisis? Check if you have enough term insurance cover for you. Check if you have your own personal health insurance cover for you and family?
Check if you have made your investments on a random basis or have you followed your goals, risk appetite and investment tenure before investing?
List these questions and try to find answers in third stage.
- Re organize:
In this this third stage, seek answers to all those questions which you were looking for in second stage.
If you do not have any emergency corpus, you can link any of your liquid investments for this purpose.
You can still apply for ‘Personal health insurance cover’ for you and family.
You can shred illiquid assets when time is right. You can set your short /long term goals, understand your risk appetite and decide on your investment tenure.
Reorganizing your personal finance will help you to fight the situation which will occur once this pandemic is over.
If you are confident enough to do this on your own, then please go ahead. Otherwise, seek an expert’s help.
An expert should guide you in unbiased manner. You can connect with them online as well during this period.
Let’s try this for our own good, so that; when our life will be back to normal, we all will have different approach to look at our finances!!
Till then Act on personal finance, stay home and stay safe!!