COVID-19 has influenced world markets and individuals at various levels. A number of measures have been taken by the Governments to avoid this crisis so that the economy can survive. Governments worldwide are now working to derail economies to sustain livelihoods compared to reducing the pace of COVID-19 proliferation. In such unprecedented circumstances, a person can make a hasty decision, so if you think of finance, investors should avoid the following mistakes...
Emergency Fund: It is very important to have emergency funds in the current era with a lot of uncertainties related to the continuity of businesses and jobs. Your expenses should be kept in the emergency fund for at least 3 to 6 months.
Not paying attention to expenses: There is a need to maintain enough cash and savings at such times. Avoid spending money on big tickets during online sales from e-commerce companies, unless it is absolutely necessary.
Stopping your SIP/investing: Continue investing in SIP if you have money and don't have much cash worries.
Taking a new loan: It is advisable not to take new loans at a time when the epidemic is spreading rapidly, as you have very low-income security while going to work due to potential pay cuts, a slowdown in the account business. Any default in repayment in a loan can negatively affect your credit score and future borrowing ability. On the contrary, you should try to repay your liabilities, starting with high-interest loans like credit card loans to ease your financial burden.
Keep watching your financial plan from time to time: Keep on paying attention to the financial plan you are moving towards from time to time.
Read also: Major changes in Income Tax Rules: ITR filing deadline extended till 31st July
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