(Aditya Shaw, Intern Journalist): The Covid-19 epidemic has brought the world to a standstill. Probably, this is one of the biggest crises in the last 75 years. However, there are ongoing efforts to deal with this epidemic. Also, to deal with this difficult time, we have to prepare from now on for the coming time. This epidemic encourages us to revisit our financial needs and reevaluate our financial plans. Let us know what we should do during this corona time.
Recalculate Your Insurance Needs -A good health insurance plan is a must for everyone. If it is family insurance then the coverage must definitely exceed Rs 5 lakh. Investors should consider low-cost top-up insurance to increase the coverage amount. In addition, adequate insurance is necessary for the earning member of the family.
Re-mark your financial goals -Travel and large social gatherings are two things that have been stopped due to this crisis. Many individuals consider a holiday one of their major financial goals. In addition, spending on family functions has decreased significantly. Use the extra money from the Vacation Fund and the Big Family Function Fund to create large emergency funds. In addition, re-assess your other major financial goals.
Increase Emergency Fund= It is not enough to have an emergency fund equal to six months of expenditure. This kind of crisis can keep people away from jobs for a very long time and also lead to unexpected big medical expenses. We should also be prepared to go through the worst phase and make the necessary arrangements to live a normal life. There should be an emergency fund for at least two years of expenditure so that we can get adequate security to fight the unforeseen circumstances of the future.
Re-evaluate your budget- Clear out the difference between essential and luxury expenditure in this epidemic. 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 purchase much-needed insurance coverage.
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