The sudden outbreak of the global pandemic of Covid-19 has put everything on a halt. It has its adverse effects on the global economy and is continuously affecting the lives of millions across the world. A plethora of individuals have lost their jobs while many are struggling with a reduction in their income. It has caused financial stress in individuals affecting their overall health and well-being. The unpredicted event has completely changed how people think about money and plan their budgets to cope with daily needs. In such a complex situation, individuals must take some precautionary steps to protect both their health & wealth from the adverse impacts of the pandemic.
In this blog, financial advisor, Mr. Ngulminthang Lhanghal is sharing a few essential & smart money management tips that will help you manage your finances and cope with the financial crisis. Let’s have a look:
1. Make An Adequate Emergency Fund - The first & foremost step towards money management during Covid-19 is to maintain a sufficient emergency fund. It will rescue you when your income gets stressed or when you extremely need money to recover from an unexpected event like a medical emergency. Here “adequate” means you need to make sure that your fund is worth at least 6 months of your expenses.
2. Consider Life and Health Insurance Policies - Many people ignore the importance of policies during a financial crisis but it can be your best move to protect your family in the event of your sudden demise or an accident. Getting a medical insurance plan for yourself & family members will help prevent money-draining in hospital bills. Seeing the rising cases of Covid-19 day-by-day, it is not a good idea to compromise on paying the insurance premium on a term plan and experience a policy lapse.
