Corona Anxiety? Here Is Your Ready Reckoner For Financial Planning
Prepare, don’t predict, says the expert
The coronavirus outbreak has triggered anxiety and fear, which is entirely understandable. Coupled with job losses and problems in the banking sector, we are witnessing an uncertain economic scenario.
During these turbulent times, it is best to follow the basic principle of prudent financial planning—prepare, don’t predict.
Here’s a ready reckoner for you:
- First and foremost, ensure you have sufficient funds to meet routine household expenses. Create a contingency corpus, if you still don’t have one, which will help you sail through this period. Most financial planners will recommend having funds that can meet about three months’ mandatory expenses.
- Call up your health insurance agent immediately. Check with them if your health insurance policy covers Coronavirus. Now that it has been declared a pandemic, check if your cover for Coronavirus (if you have one) is valid. There can be some policies, which may not cover pandemics.
- In case you are paying an EMI, make sure you save enough for the next month’s EMI too. This should be over and above the contingency fund.
- Your family members should be aware about your investments and finances. If you are unwell, they will be able to take care of your money matters.
- Don’t indulge in market timing. Refrain from making random, haphazard investments or selling off your assets. Do not decide to stop or enhance your systematic investment plan (SIP).
We know a stitch in time saves nine. Now is the time to practise it.