6 Ways To Manage Personal Finances Better
They say nothing is permanent in this world, not even the pandemic life we are currently living in. The ongoing lockdown is the new normal as India fights pretty hard to keep the dreaded virus at bay by staying indoors.
As our household habits are undergoing drastic changes, have you ever thought of what will happen to the money you spent commuting at restaurants, theatres, and malls? Yes, they are resting, and this could be a boon in disguise! With fewer opportunities to splurge on what our definition of ‘essentials’ has been, many of us are exploring and redefining what actually construes necessities and what were purely discretionary expenses masquerading as essential costs.
What exacerbates this situation? – Job losses and slashes in salaries! Now that this situation has also taken a toll on the economy, it is imperative to plan our financial security in a better manner. If we want to ensure better financial growth and safety, it is the right time to focus on start managing personal finances. From conserving cash to dealing with possible loss of income, from eliminating debt to making an inventory of assets, from learning something new to steering clear of pitfalls, we tell you how you can manage your finances better.
Now’s the time when you dig into that folder of untouched paperwork that has all your health benefits listed and indulges as much as you would in a monthly Vogue article. Additionally, don’t forget to check the sum you’re assured with and check if that would be enough. In retrospect, it’s never too late to get a health cover for yourself and your family, if you do not already have one. Besides, some of you might be depending on a medical cover given by your employer and do not possess a personal one.
At a time like this, not having your cover is dangerous because jobs and industries themselves are at risk. So use the time in your hands wisely.
Tip – digibank offers a COVID-19 (Group Health Assure) policy, with a premium starting at INR 499 – find out more here.
Save Money So It Can Save You
Emergencies are unpredictable and panic-inducing. In such times, an emergency fund might be the only hero that comes to your rescue. Considering these economic circumstances, it is best to avoid unnecessary expenses, start monthly expense tracking, maintain a budget , make a proper financial plan, and save yourself from the horror of a crisis.
Although, a common question to answer would be ‘How much money should you have for emergencies?’ Experts say, “Minimum three months’ worth of typical expenses, along with your EMIs, should be in your account.” Now that you know better, empty that shopping cart already!
You can start a contingency fund for all your emergency purposes here.
Indulge In Financial Cleansing
Like the corners of your house these days, your bank accounts, Demat accounts, mutual fund investments, and insurance policies require some cleaning! How? Gather all your documentation in one place, have everything on paper, and the necessary passwords and confidentialities, both online and offline.
Clean up all old files with unnecessary paperwork, account statements, or old insurance policies. Another essential tip would be not to make any panic withdrawals. To keep yourself financially secure, look for smart saving options. Save money by continuing your SIPs and long term investments. It is time to start reflecting on precisely what your real goals in life are. It’s a time for consolidation and understanding of what matters the most for you. If possible, top up your existing investment in equity using an asset allocation strategy.
Maintain A Good CIBIL Score
There have certainly been some resting opportunities for those monthly visitors that make our bank accounts feel less glamorous. Although to keep you going on the right track, if you have not opted for the banks’ EMI moratorium and not paid your EMIs instalments yet, your credit score might get impacted. Either you choose for a moratorium or pay your dues on time. A good credit score will help you in the future loan if needed. Ignore your toxic ex, not your CIBIL score!
Go For Digital Banking Options
An orthodox India is visibly evolving, so should you! As per Government health guidelines, we need to make social distancing a norm to avoid falling prey to the virus. So, is it better to use a digital wallet as much as you can? Yes, because you don’t know how many unwashed hands that cash has been through, nor do you want to take the risk of using your fingers on surfaces of a bank and ATM.
At the risk of sounding paranoid, it’s a fact that we need to as careful as possible. If you have accessible alternatives, then why not reap the benefits?. Use online banking, cards, UPI, or wallets for payments and managing investments. Avoid indirect and direct human touch in every way possible. Besides offering a host of features, including being completely digital, digibank is your perfect banking partner in these times. You can download the app here.
Refrain From Panic Buying
The first few weeks must have involved a lot of panic purchases. But here you are, survived so many weeks of a nation-wide lockdown so well. Then why not progress to pro-level lockdown mode? Don’t spend your money buying food items, groceries, medicines to stock up things due to fear of lockdown. Essential supplies will continue. Only buy those items which are very much important apart from daily use items. Panic buying will put a strain on your personal finances. Start making wise decisions for your wallet as well as for those who might be in need.
You know what they say, ‘Buy only what you need’. Well, sometimes we need a jar of Nutella. But don’t be hard on yourself; your wise investments will save you hereon.