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5 Financial lessons (Non-Investment) from this lockdown.
1. Insurance - Health insurance and term cover are a must have. Both combined would cost 10,000 to 15,000 p.a. for most of us (minimum coverage). Keep a monthly SIP in liquid funds and pay premium annually from this corpus
1. Insurance - Health insurance and term cover are a must have. Both combined would cost 10,000 to 15,000 p.a. for most of us (minimum coverage). Keep a monthly SIP in liquid funds and pay premium annually from this corpus
2. Emergency funds - Have atleast 3 months of expenses in liquid funds / FD. In the long run, try to build 6 months of expenses as an emergency fund. Don't use these funds for holidays, travels, entertainment, etc. This should only be used for EMERGENCIES.
3. Minimum Liabilities - O/S credit card bills, EMIs, personal loans, etc. will slowly take away a major chunk of your monthly income. Keep these expenses to the minimum. Pay your EMIs on time, otherwise you will bear a very high interest cost for the delay.
4. Tab on expenses - If you buy things that you don't need, you will soon have no money to buy things that you need. Apparels, movies, dining out, etc. are avoidable expenses. You need to strike a balance here. Some expenses come once a year so plan your cash flows accordingly.
5. Invest in health - Get a yoga mat, resistance band, exercise ball and give atleast 20 minutes a day to your health. You don't need to spend an hour in gyms lifting heavy weights to stay healthy. Also, eat healthy. Hope you liked this thread. #COVID19 #Corona #lockdown
