It’s probably for the first time that most of us are sitting at home for days at stretch. Our schedules have been disrupted. Some of us are working from home, some of us wait for their shops to reopen, some are simply watching counting days as to when this time shall pass. There have been positives too. Pollution has withered away. Streets are quiet. Some parts of India have witnessed monkey, peacock, deer, etc. taking to the street.
We will spend a lot of time at home in the coming weeks as India battles with COVID-19. During such a period, it makes sense to get our house of personal finance in order.
1. Reorganize paper work
Paper work is always left to the mercy of time. We want to do it, but some other day. Well, that some other day has arrived. Other than income tax returns (which are taken care of by our CAs), we have documents of our insurance policies, investments in shares, mutual funds, debentures, real estate, etc., some maintenance bills, warranty papers for electronics purchased, etc.
It would be prudent to have a relook at them and organize them in a way that they can be accessed as and when required.
2. Have a re-look at your financial plans with the help of financial advisor
Most of us have busy schedules during weekdays’. Weekends are spent with family and friends. Due to which, not enough time is spent on creating or reviewing financial plan for the year.
During this lockdown, it would be a good idea to have a video call with your financial advisor and discuss the year ahead in detail.
3. Have a re-look at the Cash Flow Planning and Emergency funds
Ongoing COVID-19 and lockdown has changed the way we spend money. For those who never thought of keeping an emergency fund, should now actively look at creating one. An emergency fund that can take care of your expenses for the next 6 months.
We have realized how simple life can be. We can survive without spending a lot of money. It’s important we adhere to these learnings once we get back to our normal lives. Save more and reach our financial independence early.
4. Share your investment details with your spouse and family members
In our day to day life, we tend to forget about discussing about many things with family. Investments is last on the list. In case of emergencies, it’s been our experience that family members don’t have much idea around their investments or any papers related to it.
Hence, this would be a good idea to sit and discuss with them. Also, it would be a better exercise to have financial advisor in the loop of such discussions too.
5. Read a book or watch a movie on personal finance
Many times our clients tell us that they would like to read more on finance, only if they could have more time from their active work. It can be a dry subject that can be difficult to read after a tired day at work. However, it should be easier to read some basic concepts on finance or watch a movie.
One Idiot is a very good movie for financial education. Also, readers can go through our blog to equip themselves with concepts on personal finance.
Avoid Noise created by Newspapers and News Channels
Short term thinking is prevalent across media houses. They have to create a sensational headline to attract audience. Nothing creates a quick audience as bad news. Hence, it would be better for your financial health to keep away.
Remember, this too shall pass. It may seem difficult now, but like all uncertainties of the past, this too shall be a history. What matters is that we don’t act in fear or panic right now. Just spend enough time with family because we never get so much time with them once our usual busy life starts.
Stay home and stay safe!
– Jinay Savla