This is the time when the whole world is under the threat of recession due to coronavirus. Experts predict that the corona could bring the greatest Great Depression of more than 100 years. Coronavirus has affected the work and income of people around the world. There is also a crisis in the employment of people around the world. Experts are saying that how long this situation will last is difficult to say. In such a situation, if you are thinking of doing financial planning in a matter of money, then keep some things in mind, otherwise, you may have to suffer losses in the future. Here we are going to tell you about 6 such great money-saving tips.
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Avoid using credit cards:
Recently some banks have reduced the limit of credit card customers. Because they feel they risk getting money back. You should also take care of this. You, especially the youth, should avoid the use of credit cards as far as possible. Often you spend and later find it difficult to repay.
In times of crisis like Corona, this situation can become worse. Actually, you may have to pay up to 48 percent interest on credit card dues. It is better to use beforehand only.
For the immediate need of money Liquid funds will help you:
Liquid funds are the best option for declining income during the lockdown period. You can easily withdraw income during mutual funds when you require urgent money. Due to the increase in the loan rate, banks have reduced the savings account interest. Liquid fund is the best income and better option to save money for EMI of a home loan or any other loan. A Savings account gives only 2-3 percent of interest whereas liquid funds give 6 percent interest.
Make an Emergency Fund:
You should always have an emergency fund for such situations. At this time if you have extra money, then make an emergency fund before investing it. This will mean that you will not have to take decisions like dismantling FD for money, withdrawing investment money in an emergency. Experts also recommend making a better emergency fund than investment, which will come in handy at the right time.
So keeping money in your hand is a better option. If you want to invest in fixed deposits, PPF, NSC, or any post office monthly scheme. If you have an option for FD then hurry RBI has reduced bank and repo rate and will cut FD rate in a big way.
Spending on expenditure is the most important thing:
Because they often collect their savings on the basis of expenses. Therefore, you should focus on saving more by reducing expenses. You should only spend on essentials. Avoid spending this time on things that are not needed. Unfortunately, if your salary is cut, then you can get some money by spending less.
Caution in investing:
Experts always ask them to invest for a long period, but at the moment their opinion is completely opposite. In his opinion, do not get caught in the long-term investment. There is a special reason for this. Actually, you will not know at this time that you will need money in a low emergency.
The most important thing is insurance, which you should continue in such a situation. Never forget to discontinue term insurance and health insurance, otherwise, you can suffer the biggest loss. Experts say that always keep insurance in the list of necessary expenses.
Hey, I’m Sachin. I’m a Blogger living in India. Guide for Personal Finance Planning & financial planning, Tax, Investment, Managing Money, Insurance, Retirement, Real Estate and Loans & more.