Are You Taking Good Care Of Your Financial Health During The COVID-19 Pandemic?

We are still living with the COVID-19 pandemic and it isn't going away anytime soon. Vaccine manufactures are of course claiming efficacies of their COVID-19 vaccine trials, but when will the vaccine be officially released and widely available is not known yet. Currently, certain countries -- including India -- do not have the appropriate cold chain infrastructure yet to store the COVID-19 vaccine.

The International Monetary Fund (IMF) in a blog co-authored by Allan Dizioli, Michal Andrle, and John Bluedorn, has observed that the pandemic and the efforts to control it have disproportionately hurt the poor, both within and across countries. So, income matters!

The COVID-19 pandemic situation is a reminder of life's unpredictability -- throwing curveballs at us. It is important to take care of our medical health just as much as your financial health.

As there are symptoms to recognize the contraction of COVID-19, here are few evident symptoms of bad financial health...

• Having no whereabouts of your money, not keeping track of transactions

• Having very little savings

• Not holding enough contingency reserve or a rainy day fund

• Using credit cards even for certain basic requirements such as grocery, utility bills, etc.

• Clearing one debt with another, which potentially may pull you into a debt trap

• Failing to maintain a good credit score

[Read: 6 Symptoms of Bad Financial Health]

You see, in the interest of your financial wellbeing, hard-earned money needs to be managed with due care and diligence...

• You need to engage in a prudent budgeting exercise, keep track of expenses, and optimally manage cash flows.

• To save more, follow this pearl of wisdom: "Do not save what is left after spending, instead spend what is left after saving" - Warren Buffett.

• Maintain an adequate emergency fund (at least 12 to 24 months of regular monthly expenses including EMI on loans), whereby the investments assigned to the goals are not unutilised.

• Keep your debt (including credit card usage) low to ensure it does not become a financial burden. Ideally, your debt-to-income ratio should not exceed 30% of your income.

• Hold optimal life insurance (ascertaining Human Life Value) and health insurance cover (considering the cost of healthcare).

• Prudently plan your investment by intelligently crafting an asset allocation model that is best suited for you.

• Diversify your investments in a range of avenues on the journey of wealth creation as per the envisioned financial goals (short-term, medium-term, and long-term) you may be addressing.

• Make sure the goals set are S.M.A.R.T (Specific, Measurable, Adjustable, Realistic and Time-bound).

• Review the investment portfolio, so that you are on track to accomplish the envisioned goals.

• When planning for a variety of financial goals, do not overlook your retirement - it is a vital financial goal. You see, living in the 21st century, in a capitalistic society, how to save enough money to live self-sufficiently after you stop earning can be a tricky question.

• Think even beyond retirement: about estate planning, to pass on assets to your loved ones

It always makes sense to keep your family members in the loop when it comes to financial matters of the family. After all, many of the envisioned goals you are addressing are for the family.

It is time to become your family's Financial Guardian, irrespective of your age, gender, and what you do for a living. Just as it advantageous to have a doctor in the family who understands medical nuances, it is beneficial to have someone as the family's Financial Guardian.

PersonalFN encourages you to increase your financial awareness and make informed financial decisions for your family's financial wellbeing. Soon we will be launching a certificate course, called "Certified Family Guardian" that will empower you.

The "Certified Family Guardian" course can help you with all the relevant tools and learning modules that you need to improve your financial health.

You will get access to...

• ✓ A host of exclusive downloadable calculators (viz. Human Life Value calculator, Power of Compounding calculator, SIP calculator, STP calculator, Real Return calculator, PF calculator, Marriage Goal calculator, Education Planning calculator, Retirement calculator, Crorepati calculator, and many more) developed by PersonalFN

• ✓ Exclusive educational guides

• ✓ A premium asset allocator tool developed by PersonalFN's research team

• ✓ PersonalFN's Mutual Fund Screener, to help you screen performance of mutual funds across categories and sub-categories

• ✓ Access to PersonalFN's list of top-rated funds

• ✓ Latest views and ratings on Mutual Funds

• ✓ And the comprehensive courseware to help you become your own financial planner

So, stay tuned and watch for this space to known about Personal's exclusive family-centric and result-oriented offering, the "Certified Family Guardian" course.

"An investment in knowledge pays the best interest." - Benjamin Franklin

Warm Regards,
Mitali Dhoke
Content Writer

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