Recent announcement by Prime Minister Narendra Modi to completely lockdown the country has made people stay at home and work from home. Coronavirus pandemic has affected lakhs of people all over the world and has killed many. This has led to panicky situation among the people as their health and finances are not in good condition. Coronavirus or COVID-19 has taught some important lessons about personal finance to mankind. Here are some points that can help you learn and grow in this tough time:
1) Having an emergency fund is utmost vital:
Financial planners always suggest in their financial plan to keep an emergency fund. But people generally ignore the idea as they want to invest more and earn more returns. But coronavirus has taught the value of emergency fund for those who are taking a 50% salary cut or have an lay-off like situation in their organizations.
2) Short-term investments are not good enough:
Yes, you read it right! Due to the panic-like situation everywhere due to coronavirus pandemic, even the investors are worried and the market is scrolling down. So if you see, your equity portfolio is going to get a hit if the emergency fund is not in place.
3) Health insurance is a complete MUST:
In a country like India where anything can happen at any point of time, having a minimum health insurance with or without a family cover is a MUST. Health insurance helps to stay financially independent and covers all your medical expenses without making you touch your investments.
