Five financial blunders that you must avoid during coronavirus crisis to ensure a safer future
New Delhi | Jagran Business Desk: The whole world economy is going through a period of crisis amid coronavirus. As per IMF, we are entering a recession. With this, unemployment has reached unprecedented levels. According to experts, there is uncertainty in the near future as it is not easy to say anything at this time on how long this crisis will last. Experts believe that at this time people and especially the youth should take full care of their health as well as their finances. They must avoid doing things that will trouble them in the future.
1. Use Credit Cards carefully
Manikkaran Singhal, financial planner and founder of 'Good Moneying', told jagran.com that the current situation is critical. In such a situation, the youth should use their credit card very carefully. You cannot spend more thinking that you will pay money later. It is noteworthy that on the outstanding bill of credit card, interest is charged at a huge rate of 36-48 percent per annum. In such cases, credit card bill will become a huge financial burden for you. So spend only that amount which you will be able to pay every month.
2. Instead of investing, focus on emergency funds
According to financial planner Shilpi Johri, people should focus on their emergency fund more than investment. Those who have not yet prepared for the future, should prepare an emergency fund, taking lessons from the present circumstances. Speaking to Jagran, Singhal also expressed a similar opinion, saying that at present, the stock market is down and many companies are also incurring losses. So in such a situation, people should avoid investing money.
3. Make necessary expenses
Both Singhal and Johri warned people that it is time to spend not on luxury but only on the important things. Singhal said that the near future is full of uncertainties and no one can understand how long this crisis will last. Thus, we should be prepared for large scale wage cuts and job cuts. In such a situation, no matter how much money you have, spend it only on the necessary stuffs.
4. Invest money wisely
Johri said that it is time to postpone long-term investment. You have to assume that you may need money at any time. In such cases, only keep your money from where you can easily redeem them in a very short period of time.
5. Don't end insurance plans
Both Johri and Singhal insisted that no one should make the mistake of discontinuing term insurance and health insurance even during these challenging times. Singhal told Jagran that people should make a list of their essential expenses and non-essential expenses and insurance should be included in the necessary expenses list.
Posted By: James Kuanal