There’s still a doubt that this pandemic will ever leave us or not but one thing is for sure: It has left a deep imprint on how we see ourselves.
A survey confirmed that 72% of families were struggling to make ends meet due to Covid-19. This figure is extremely important because if you are reading this right now, I assume you don’t want to be a part of this.
That’s why we must keep ourselves financially secure not only because of uncertainty looming across the world but because it’s important for a healthy lifestyle:
1. Get rid of all debts
Debts are an important part of our life. As you start earning, you wish to fulfill certain aspirations such as a house, cars, or even jewelry for which you borrow loans. This makes it easier for you to avail yourself of big capital and own assets in a short time.
But when one fails to repay these debts, it starts causing trouble in your life. Not only does it affect you financially, but it will also have an impact on your body and mind. Therefore, it is very important to manage all your debts, especially bigger ones, and not let them accumulate.
Before applying for the loan, it’s better to have a clear understanding of factors like repayment, interest so that it does not cause a hindrance afterward.
2. Open a savings account
We’ve all witnessed people getting unemployed at the drop of a hat and families getting struck by poverty. Stats suggest that around 81 million jobs have been throughout Asia due to covid.
This is why it is extremely vital to keep a savings account and also save some portion of your income in it. This will act as a safety net for times that are not in your control.
In case, if you face any problem in the future (hopefully not), you can break these funds and use them for your good and your family’s well-being.
3. Buy adequate insurance
Buying insurance for you and your family is like creating another safety net in a time of adversity.
Let’s start with life insurance. If you are the sole earner in your family, then don’t forget to get this done. This will help them in case some unfortunate incident strikes you.
If you already have it, make sure to review it once in a while when there are major changes in your family (wedding, birth, or divorce).
Another important insurance is health insurance.
Health insurance is important just not for you but your family as well. Medical inflation is at an all-time high now. If you don’t wish to get immersed in medical expenses, you must get health insurance for both you and your family.
This way when any health issues knock at your door, the only thing you care about is your health – physical or emotional.
4. Plan your finances well
When most people start earning, they fall prey to spending aimlessly which leads to a lack of finances during times of need. Don’t be these people.
Install a budget tracker or write your spending in a notepad. This will help you get a clear understanding of where you are spending unnecessarily and how much you need to save.
Furthermore, if you set out your financial goals for the next 3 years, your financial tracking will take a big hit and slowly you will reach a point of stability.
5. Seek professional help
If you are someone who is not so good with financial planning, don’t worry, there are several articles and books available online on financial security. Pick a few of them and they will help you understand your “real” financial goals and how to achieve them.
However, if you don’t have enough time or the resources available online make you feel overwhelmed, sit with someone in your family that has gone through financial ups and downs and conquered them… they will give you a better understanding of what your financial goals should be and the correct plan of action to achieve them.
6. Make proper investments
When you have a plan ready, don’t just put your money aside in your savings account or FDs, also consider other asset classes. This will help you in saving as well as investing in places that will give you good returns.
Over to you…
These are some small steps required to make your family financially secure in all ways. So, what are you waiting for, start today!
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