New Delhi: The COVID-Pandemic has had a heart-wrenching impact on many families, who lost their loved ones, and more specifically their bread winners. The crisis has taught a big lesson on why we must maintain a disciplined financial habit so that we and our families don’t suffer.
Choosing your Nominee
Choosing a nominee of all your accounts, funds. You should never ignore this aspect. You must choose a nominee for all the financial instruments you hold so that in the event of an unfortunate event, your family will not suffer.
An emergency fund, as the name suggests, can come to your rescue in the most crucial times. In an unforeseen event, in a case of job loss or business failure, this emergency fund will be your best buddy. When you are in urgent need for financial support in trying times, the emergency fund can be utilised. If possible try to build a corpus equivalent to your 6-month income.
Dont invest in one pool
The famous English proverb says, “Don’t put all your eggs in one basket”. You must follow this proverb as a thumb rule and not invest everything in one plan or financial instrument. Rather have a big gamut of investments ranging from small savings, mutual funds, SIPs, stock markets etc so that you have a bigger range.
Health Insurance is a must
The COVID-19 Pandemic has once again proven the importance of having a health insurance plan. Choosing the right health insurance policy is very important so that you have a big cushion during medical exigencies.
Take a term plan
COVID or no COVID, a term plan is a must for those with dependents. In the case of an unfortunate event, term plan will make sure that your family is not left in the lurch.
Be very wise with credit cards
Credit cards are extremely useful when you are in need of short term funds. But you must be very wise in your spending. Remember, in the end, it is you who are paying the bill. A poor credit card score not only eclipses your CIBIL score, but also in the long run saddles you with financial burden.
Minimise your debt
When debt keeps piling on, all your means and possibilities shrink. Borrowing must come with a concrete plan. Know the period or window by which you can complete the debt burden. Also, in the fragile times we live in, don’t saddle your family with unwanted debts.