COVID D Detonates! Conserve your finances.
The emergence of the Corona virus or COVID 19, has with within this short time period changed the world, it has shaken us out of our cocoon of invincibility: times to come will talk of the changed world post the advent of the COVID 19 or Corona virus which is now a global pandemic.
Health care currently rules the agenda of Governments all over the globe, to provide timely aid to the infected and beef up infrastructure and supply of medical equipment. Saving lives is primary focus as we become ready to face the economic aftermath of the lockdown.
Each one of us will face the effects of the economic crunch in some way, rather than getting paralysed by thoughts of what is to come, we can take some steps to organise our finances.
Plan ahead for the next 3 months:
We are not sure of the direction the winds are going to blow, so it becomes imperative that we start by conserving and planning ahead. Basic needs and necessities should be provided for by keeping aside funds for the same, cutting out extra expenses by being a bit frugal will serve well.
Make sure there is enough balance in your account to clear the EMI’s for all current loans:
The installement for the credit availed will be presented to the salary account on the due date via ECS (electronic clearing systems). If there are no funds available there will be a return or bounce marked, this status will remain and be recorded in the CIBIL even if the funds are repaid shortly. The CIBIL score will also be affected even if for an interim period of time.
Keep electronic spending and credit cards in check:
We can use our credit cards for expenses keeping in mind that here are funds available to pay the bill at the end of the month. A credit card debt will incur a very high rate of interest, it may be worth the while paying through your credit card in an emergency situation when short of funds which can be repaid in instalments.
Do not panic by the present scenario of the dip in the stock market and erosion of funds. This is a first in many ways that the markets are facing. Time is of essence for the virus to be controlled, it is only after that will normalcy return and the financial markets will stabilize.
Let us be patient, consolidate, conserve and wait for the tide to take a turn and times to change.