How to secure your Financial Health in this Pandemic and be Crisis ready?

 



The world is passing through a nightmare. Since last year the pandemic has cast a dark shadow over us. Every day we wake up to hear the news of death of the loved ones. At this time Doctors are advising to eat well and keep our immunity strong. Not only is the pandemic taking a toll on our health, but also it is crippling us financially. Job losses, huge hospital bills, medicine cost, price hike of the essential goods, seems like the list does not end. Just like our health, it is also time to think about our financial immunity. There are several important medicines I am going to discuss.

Build an Emergency Fund.

Don’t live paycheck to paycheck or invest all of your savings into illiquid funds or at the hour of crisis you will not have a penny to save yourself. One should keep aside every month some of his/her monthly income as an emergency fund. It can be kept in the form of RD, FD or in a separate savings account, which he/she will not touch until the hour of crisis like Job loss or big emergency expenditure. The fund should be liquid enough so that the money should be used when required. One should target to build an emergency fund of at least six months of monthly income, the more the better.

Buy a Health insurance

I hope everybody has an idea about how expensive the hospitalization cost has become. So buying a health insurance has become need of the hour. Health insurance provides hospitalization cost at a certain premium so that someone’s hard earned savings doesn’t wash away. One can find hundreds of health insurance products in the market at an affordable premium. Comparing them and buying a suitable one with maximum benefits is the key.

Buy a Life Insurance

Rising death rate due to this pandemic is putting families into vulnerability. If someone is the sole income earner of the family and have dependable family members then Life insurance is must. Life Insurance provides a certain sum of money to the family of the insured person when he or she dies. This is to secure the future of his/her family even if he/she is no more.  Buy a Pure term insurance which provides cover of minimum 25 Lakhs at a very low premium.  Some people think that this is a waste of money but please think of your family and take the decision.

Keep a budget

Overspending is a reason why many people become financially broke at the time of crisis. Learning to identify between the need and luxury is very important these days. Keep a budget and make a list of your monthly spending and try to spend less on luxury now.

Every penny saved is one more step ahead towards financial immunity.










© Deep 

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