Here is a list of 10 things you should look at in times of a crisis. Given the current pandemic situation, here are some things you can consider doing to keep yourself financially safe.
- Keep the cash reserve: Sure, I actually mean hard cash. It might be useful keeping a little bit of physical cash in your pockets. ATM could run dry, Internet services might be hit, so in such a situation cash could become your saving grace.
- Check contingency funds: This is the time for which we created the contingency / emergency funds. Where are they? How quickly can you access them if the need arises?
- Postpone borrowing: In a scenario where there is so much of uncertainty in terms of jobs, unpaid leave, business cash flow is getting affected it would be best to avoid any sort of unnecessary outflow.
- Postpone purchases: Do not buy unnecessary items at this time. Save your cash and save your cashflow. Till things are down to normal a little bit frugality will not hurt.
- Pay bills quickly: Even if you pay before due date, even if you pay a little more in advance it may be a good idea to do so. This is to ensure that key services viz., telephone, electricity, mobile, Internet etc do not have any interruption.
- Pay taxes quickly: Check your income for the year, see if you need to make additional payments for income tax etc then do it now. This is necessary and will save you the trouble later when the website is choked with bandwidth issues.
- File your returns: If you still have not filed previous returns then do not wait for the last day. There may be nobody to help on that day; maybe everyone is extremely busy on that day and you donโt want to be late.
- Enable net banking: Is everything working perfectly? Your logins, your password, your banking app in the phone etc. Make sure everything is working so that if you need to do any transaction you are not stuck. Physical transactions may not be possible.
- Check protection: Have you got your health insurance sorted out? Is everyone covered in your health insurance? Is it adequate or do you need a top up? These days companies out also advertising covers which cover Covid-19. Get it.
- Wealth Creation: Last, but the most important. Move all excess money gradually into equities; this might be once-in-a-lifetime opportunity. And you wonโt want to miss the rally that will happen once these dark clouds move away.
By Kartik Jhaveri,
Director – Transcend Wealth Management.
Contact us on: 022-4002 4043 / 44 / 45. What’s app on + 91 7977877924.