New Delhi. The Coronavirus pandemic and nationwide lockdowns have had a profound impact on economies and businesses around the world. During this period of layoffs in companies is going on, in such a situation, the household income of the people has been affected. In the midst of this uncertainty, having financial foresight is vital for every household. Drafting a household budget is the first step in personal finance management. In this way, you will be able to know your necessary expenses and unnecessary expenses and take necessary measures.
It is not the right way to curb every small expenditure in this period. Instead, people can curb expenses by making changes in their lifestyle. People’s attention should be more towards saving. Here are five ways you can try to improve your financing.
budget changes needed
Priority should be given to meet essential expenses. Revisit your budget by eliminating unnecessary expenses. Most of the people are doing work from home. In such a situation, money spent on traveling and eating out should be used for other financial needs. These savings may come in handy in the coming weeks.
Increase your emergency savings
It is important for one to have adequate emergency savings. Emergency savings are needed to cover essential household expenses over three to six months. But in times of pandemic and nationwide lockdown, an estimated one year emergency funds should be saved. This can be used in difficult times.
People should consider investing in different forms and contribute more to their retirement savings. The stock market keeps on fluctuating. In such a situation, instead of relying on them, there is a need to focus on your retirement plan.
Interest rates have come down amid volatility in the stock market. In this case, you can opt for any balance transfer credit card with low interest rates. Absolutely don’t try to get debt with high-interest credit cards.
eliminate bad loans
This is a good time to clear any old bad loans. The Reserve Bank has cut interest rates. Interest rates are at their all-time low. In such a situation, by repaying your old outstanding loan, you can shorten the loan tenure or even eliminate the loan completely.