Lockdown. Quarantine. Pandemic. Health Crisis.
These are just some of the many buzzwords that took prominence in 2020 this year. And while most of us look to fast-forwarding to 2021, let's look at how 2020 helped us emerge fi nancially wiser.
BUDGET COMES FIRST
A budget may appear tough to implement at first - it involves relooking into your essential expenses, savings and spending on things you enjoy. But having a budget has long-term positive implications for your fi nancial life.
RETHINK YOUR SAFETY NET
If saving and investing for an emergency fund was not a priority before 2020, it defi nitely is now. A basic safety net may prevent you from reaching out for a loan in the event of an unexpected expense.
DEBT MAY BE SCARY
While losing one's income is an area of concern, having debts to pay at the end of the month may be an added worry. Look at eliminating debt as one of the priorities in your financial plan.
INSULATE WITH MEDICLAIM
Having adequate Mediclaim is crucial in today's times. Look into your medical policies to see if you need added coverage for the future.
HAVE A LONG-TERM INVESTMENT PERSPECTIVE
Market volatility sometimes causes investors to become uncomfortable. But rather than focusing on short-term results, consider long-term results. Having a longterm perspective might make it easier to stay on your investment course and endure relatively brief market jolts.
DIVERSIFY YOUR PORTFOLIO
Diversification ensures you're not putting all your eggs in one basket. By spreading your investments across asset classes, you benefi t from the advantage that when one area of your portfolio may be failing, another may be gaining.
REVIEW YOUR PORTFOLIO
Market conditions may cause some of your investments to do well while others may take longer. Hence, it can be a good idea to review your investments from time to time.
WRAPPING UP By applying these pieces of money advice, even as life evolves after the lockdown, you are likely to emerge from 2020 fi nancially stronger and poised to take on any uncertain economic future.