FIVE STEPS TO SECURE YOUR MONEY DURING LOCKDOWN
Due to worldwide outbreak of Covid-19 Pandemic, the world is going through never before tough times. The unavoidable lockdown has affected various economic activities severely. It has created uncertainties and panic circumstances around us. Financial instability is one of the major crises people are facing.
We would like to suggest some solutions that may help you maintain your financial stability that will lead you to live a worry free and peaceful life during today’s tough situation.
Track and Control of Expenses:
Though lifestyle expenses have already been reduced marginally, you can further take control of your daily and monthly expenses. Financial inflows and outflows play an important role in budgeting. Having control on expenses will help you maintain your financial standing for longer term.
What to do with EMIs?
As we are aware that RBI has announced Moratorium for all kind of loans till 31st Aug 2020. You can take advantage of this if there are uncertainties in income. This will help reduce current financial burden. On the contrary, if you are in a sector which has not affected, you can continue paying EMI’s as it is. It will save some interest that may charge post lockdown.
Security of your money in Bank Accounts:
Online frauds and cyber threats have become the matter of concern for Account holders, Banks and other Financial Institutions. It has created a feeling of insecurity for money lying in bank accounts. Though you need to keep funds in bank accounts for your regular needs and liquidity, we are glad to inform you that you can easily safeguard your money by parking a portion in liquid funds. You can park 80 to 90 percent of money to Liquid funds or Ultra Short Term Funds. These are the best alternatives for saving accounts since there is no risk of cyber threat. They also provide liquidity to your money and above all interest rates can also be better than saving accounts.
Asset Allocation:
If you are trying to invest and take advantage of current market scenario, Keep your Asset Allocation well balanced. You can shift your portfolio more towards equity to make the most of market correction. Also consider your age and investment horizon for better result from your Asset Allocation.
Opportunity to Reset and Boost your Financials:
This situation is an opportunity to rebalance your financial stability. There are two major factors that will help you achieve Financial Freedom. One is Moratorium announced by RBI and other is discounted equity market. You can opt for moratorium for those liabilities where there is low interest rate and pay off maximum to liabilities with high interest rate. This will help reduce duration of high interest debts and hence more money can be saved in future. On the other hand equity markets are in huge corrections and hence you have an opportunity to generate better returns on your investments in near future.
After all, financial stability and sustainability of an individual is an important factor to survive in every ups & downs of life. As a Financial Advisory Company, we are in day to day dealing with financial aspects of individuals and hence, we take it as our social responsibility to educate people and help them at our best.
Prashant Jadhav
Founder and CEO
MoneyGraph Financial Services
prashant@moneygraph.in