It is nothing surprising to see the world grappling with unforeseen events caused to the novel coronavirus. The disruption caused by this virus will have an indelible mark in the history of humanity, economics, and healthcare. Amid the tough times, the experts have concluded that even the blue-chip organizations can become weak, one can become poor by losing money overnight, and the debts can turn into a nightmare.
While most of us are looking at the novel coronavirus with a pessimistic view, we shouldn't ignore the fact that it has taught humanity a valuable lesson.
Some vital lesson- The virus has taught all of us to sustain. The complete back-to-back lockdowns have taught us that the cost of living was never high, but the standard of living was always high. Many expenses that were necessary to us were extra; experts assume that at least some years down the line, people will maintain this minimalist approach to life.
This simple lifestyle would be an excellent opportunity to learn how to invest more and spend less. Money management ideally is more of an emotional quotient than an ideal quotient. Almost everyone now has a transparent picture of sectors where one should spend less and save more. So get your priorities right by increasing your emotional quotient towards finances, thus managing money better than ever.
After you limit your expenses, the next big step is planning your investment. The majority of the households in megacities or urban areas have dual income. So when it comes to calculating the total finances, you should make sure that not more than 50% of your income should be spent on expenses.
Furthermore, the remaining 50% of your income should be invested. You can consider the ideal breakup of spending 30% of the savings in liquid plans and 20% of savings in long term investment plans. The amount you keep as liquid savings can also be invested in fluid mutual fund plans as it can fetch you a higher income in comparison to FD's and regular saving account. The best part about liquid mutual funds is you can withdraw whenever you want within a day.
Thus indeed, 2020 has been a challenging year with novel coronavirus pandemic but don't need to stress about anything as such if you are well prepared to handle the crisis by buying Covid-19 + COVID Health Insurance.