Over the last few months, since the outbreak of the pandemic across the globe which was unexpected has thought us the importance of money and how to secure our self in a strong financial position. The surprise turn of events globally has left many people to think strongly about safeguarding their future and to change their bad spending habits.
The complete change of scenario has forced many people to rethink about their financial goals and implementation of strategies to achieve the same.
Let's check the Valuable Money Lessons to Learn During Coronavirus Crisis.
Separate Needs from Wants
We as human beings have never-ending wants in our lives. Of course, this itself acts as a main motivational factor for achieving success. But one has to demarcate and separate needs from wants.
The last few months have thought to us that we can still live our lives and enjoy without having access to many products and services.
A regular and disciplined personal budgeting has to be done and adhered to strictly as this alone will help one to be financially strong and mentally fit to face such circumstances, if it occurs in future.
Investment Planning is Important
Investment is a long journey and it cannot be achieved in one single day. The ups and downs in the markets and high volatility over the last few months have deterred the confidence of investors in the markets.
But if you have a financial goal mapped for your investment then it will provide mental stability which in turn will help you to focus for the long term. By mapping a goal-based plan, an investor will get the needed confidence and courage to adjust and move past the short-term losses they face in the journey.
Note: Ensure to periodically review and take necessary steps to redraw the goal (if required) to reach your desired destination.
Debt is Bad During Critical Times
The pandemic situation has taught people that having a steady income is not certain. The change in the lifestyles of the people, the increased spending habits and cheaper credit access had driven the customers to go all out and purchase goods and services through it was not one of the basic requirements.
It is essential and important for all the individuals who are employed to remember that taking a debt should be within the requirement and certainty of future earnings and a loan should not be taken to fulfil one's personal needs (until and unless one has an alternative source of income for repaying the loan).
Investments and Returns are Subject to Vary
After setting a financial goal, it is very important to implement it properly by allocating funds in various assets and products across the asset classes. Make sure that your investment portfolio is well evaluated in terms of quality, your risk appetite, adjusts to your goals and so on.
Over some time, regular rework on the plan will ensure that all the flaws will disappear and you will get a picture of steady income flow which will help you to meet your set financial goal.
The virus-related crisis thought us that our investments and the returns associated with it are subject to vary. Most of the central banks across the world including the Reserve Bank of India have trimmed down interest rates leaving customers to face a dire situation.