The uncertainty of the future is more stressful than the current situation. For the same reason, the change expected post lockdown is more daunting than the prevailing scenario. The scariest of them all is the uncertainty that the economy is expected to face. The Global GDP which is already sloping downwards is expected to fall further in the future. The situation of falling GDP is not ideal for any profession. All sectors are going to go through a major cash crunch amidst COVID-19, and the situation is not expected to get better any time soon.
The falling GDP and growing losses for companies would make them take some tough decisions. Layoffs are a part of every economic slowdown, but knowing this slowdown is here to say causes even more panic. Thousands of people are losing their job every day and you are not alone if you think you are next.
We wish you the best and hope that you bloom career-wise, but we also want you to be practical and well equipped for all that is coming your way.
To help you with your financial stress we have a few pointers.
1. Don’t Defer Payments Unless You Need To
The RBI has been offering relief to taxpayers and debtors to avoid unnecessary financial burden on the population. The scheme is available for all and as a result, the people with stable income are also choosing to delay their payment. If you are one such person, stop doing that. Pay while you can, you don’t know what the future holds for you.
2. Minimize Expenditure and Build an Emergency Fund
Many things have changed by the lockdown, but people’s extravagant expenditure didn’t make the list. Everyone has the same spending pattern even when most of the shops are closed. If you haven’t thought this behavior through, know that it could be lethal if you lose your job in the coming future. Start spending wisely and put all your savings towards an emergency account.
3. Let your Investment Grow
The market is down and the prices of share are low. If you have always wanted to make money out of equity, now is your chance to do just that by investing. Trading could be a favourable activity to pick up right now to ensure long term financial gain. Just make sure you invest only a short part of your income as it might take a long time for the market to boom.
4. Review your Health Policy
If you are completely dependent on your employer for your medical insurance, make a change. Losing a job can hit even harder when you don’t have basic healthcare security. Ensure that you compare and purchase a policy that is affordable yet beneficial. If you already have ample of health policies, review them to see if they fit your lifestyle.
5. Get Multiple Sources of Income
It would be a good idea to have other sources of income lined up for you to ensure your wellbeing. You could start a new project or start freelancing, anything that will keep money flowing works. It might initially be hard to work on multiple projects, so always keep the long term aim in mind.
We hope you have some insight on how to go about your financial management. We wish you all the best.