COVID-19: 4 Financial Planning Tips to Manage Your Funds Now

We’re living in unusual times. The COVID-19 outbreak has resulted in unprecedented city lockdowns, closed international borders, quarantines, and unstable markets. Taking care of our wellbeing & following safety measures to put a break to the spread of the Coronavirus has turned out to be critical. However, at the same time, it is also vital that we make essential preparations & readjustment to make our financial future secure.

Here are some financial planning tips that you might find useful during this tough time:

Increase your emergency fund:

The global economy has already suffered from the COVID-19 pandemic, and there may be prolonged aftermath of the recent instability. This is the time to enhance your emergency fund. Preferably, your emergency fund should be a minimum of six months of your expenditures, but you may wish to enhance it further in this trying time.  Your emergency fund can be your ultimate helping hand if there is any loss of earning in the coming days occurring because of COVID-19.

Reassess your budget & daily expenses:

You’ll need to limit your non-essential expenditure during such a tough time. Sufficient savings could prove to be very useful if the situation deteriorates further. Putting a temporary break on buying big-ticket items during this pandemic time would also prove to be very useful in enhancing your emergency fund. This is the time to reassess your budget & prepare your shopping lists based on priority.

Safeguard yourself in case you lose your job:

Due to the COVID-19 outbreak many firms have been forced to close their units provisionally, whereas others may shut down their businesses permanently. If you lose your job & income in this process, don’t hesitate to get in touch with your state unemployment office to apply for unemployment insurance (benefits) or check out their different resources.

Don’t discontinue your long-term financial planning in a hurry:

Yes, the markets are already undergoing unstable phases because of the pandemic. But, it’s recommended to not discontinue your long-term financial goals in a rush. You better persist with your mutual fund or SIPs to attain your long-term financial objectives. In fact, a crashing market could also mean you purchasing more mutual fund units at a bargained price and enjoy higher returns when the market bounces back.

For more such financial planning tips to manage your fund during COVID-19 outbreak, get in touch with Sunil Chugh in Mississauga, visit www.sunilchugh.com

Disclaimer: The information in this commentary is for informational purposes only and not meant to be personalized investment advice. Please contact your investment professional for investment advice and before investing in any product.  ACPI does not publish market research and Sunil Chugh is not registered as a research analyst. The content is from sources believed to be accurate and the opinions expressed are those of the author and do not necessarily represent those of ACPI