The Covid-19 pandemic has brought a bit of a pause in the world. Probably, this is one of the biggest crises in the last 75 years. However, continuous efforts are on to deal with the epidemic. Moreover, to deal with this difficult time, we have to prepare for the time to come. This epidemic encourages us to revisit our financial needs and re-assess our financial plans. Let's know what we should do at the time of the crisis in this article.
Recalculate your insurance needs:
A good health insurance plan is essential for all. If it is family insurance, the coverage should definitely be more than Rs 5 lakh. Investors should consider low-cost top-up insurance to increase the coverage amount. Moreover, adequate insurance is required for the family earning member.
Re-mark the financial goal:
Travel and large social conferences are two things that have been stopped due to this crisis. Many individuals see a holiday as one of their major financial goals. Moreover, the expenditure on family work has come down considerably. Use the money in addition to the vacation fund and the Big Family Function Fund to create large emergency funds. Also, re-assess your other major financial goals.
Increase Emergency Funds
It is not enough to have an emergency fund equal to six months ' expenditure. Such a crisis can keep people away from jobs for a long time and make unexpected big medical expenses. We should also be prepared to undergo the worst phase and make necessary arrangements to live a normal life. There should be an emergency fund of at least two years' expenditure so that we can get adequate protection to fight the unforeseen circumstances of the future.
Re-assess your budget:
Explain the difference between essential and luxury expenses in this pandemic. Individuals should take this as an opportunity to assure their budget and reduce unnecessary expenditures. This will help us make additional savings that can be used to increase investment or buy much-needed insurance coverage.
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