From cooking, reading, to exercising, Indians are finding innovative ways to make the best use of the lockdown. Every new day of the lockdown is helping us realise something new. Many such realisations are also related to money. With most employers considering pay cuts and lay-offs, the financial struggle can be excruciating.
But such challenges often bring with them a lot of valuable lessons. Here are some of the top lessons that this lockdown has taught us about MONEY.
1. Luxury Redefined He who buys what he does not need, steals from himself- Swedish Proverb.
As the disposable income rises, so does the amount of money we spend on luxuries. While there is no denying that you should enjoy the life you’ve created for yourself, the thin line between luxury and essential becomes blur amid the regular chaos of our lives.
But, as we are in the midst of a lockdown, many of us may have realised that with limited access to goods, and massive delays in the online delivery services, things that were considered a necessity are luxuries. And, this may have a long-term effect on how we may shop or budget in the future, and make better use of the money.
2. Budgeting is the Key to Financial Stability Budgeting is now more important than ever. With most people struggling with liquidity, now is the time to be very careful with your cash flows. Assess your financial situation and start preparing for the worst.
While the government and the employers would try to soften the blow, you should be prepared for every possible scenario. And if you never created monthly budgets in the past, now is the time to adopt this life-changing habit.
3. Emergency Fund to the Rescue It is for emergency times like the lockdown that one should always have an emergency fund. You should have at least 3-5 months’ salary saved in the account to navigate through financially challenging times.
If you don’t have an emergency fund, create one with whatever amount possible once life starts getting back on track. Apart from an emergency fund, try to also get more serious about saving money, investing, purchasing insurance, and getting closer to your life goals.
4. Changing Face of Financial Services To revive the economy, the government is expected to first provide financial resources to the poor. Once the stimulus is announced, it’d then be the responsibility of the banks to help the government reach the poor across the country, including the rural areas. White Label ATM service providers will play a vital role through their deep rooted ATM network reach in semi urban and rural geographies by ensuring cash remains accessible to the masses.
5. ‘Health is Wealth’ – Stay Healthy Physically and Financially With the COVID-19 cases consistently rising in India, it is crucial to take utmost care of your physical health because as the saying goes, ‘Health Is Wealth’, and most importantly follow the lockdown guidelines.
You cannot let your financial health suffer for long, now you have the time to thoroughly analyse your finances and make positive changes that could help you not just during the lockdown but throughout your life. Money Saved is Money Earned remember to Cash in on this time!