Today is the time where you need to plan your Life and Finances by balancing Present and Future
As we continue to deal with a global pandemic, more people are feeling life and financial stress, looking to an uncertain future while dealing with a volatile present.
Henceforth, we need to prioritize and address short-term needs, framing those actions in the context of longer-term goals. Also, recognizing that the pandemic requires near-term adjustments.
Today we are talking about our habits and beliefs which changed after Covid-19 event.
- Before the corona-virus breakout – we were habitual of investing randomly in the share market, mutual funds, fixed deposits, insurance policies, and not thinking of using that money in our life span. Also, in each up & downs, we keep on adding money.
Current time has come to focus on and reorganize your income, loans, investments and savings. Finding your life values, why money is important to you and linking that random investment towards your present and future aspirations.
- Earlier we were lazy to invest and review annually. We thought that investment is a one time process, no need to review.
But as per the Life changes, our priorities of life also change, and we need to change our portfolio according to the changes in our needs and requirements.
After covid-19, our life as well as our economy’s structure is changing in many ways.We need to focus on the need-based asset allocation of our own by deciding below three things:Which asset class is suitable as per my requirements?
How much allocation should I keep in each asset class?
What are the correct entry & exit points?
- Before the corona virus breakout, we had a fixed lifestyle. A fixed amount of Loan, Investments and spending on social events, birthdays, weddings, vacations, outings, etc.
Now we have to try and save every penny we can. We need to focus on understanding our financial position, prepare a road map and review it quarterly.
- Earlier, we believed that 3 to 6 months’ expenses are enough to be kept liquid.
After Covid-19, we have realized that one has to create a survival fund (size depends upon earning and spending style of each family) for future uncertainties. We need to focus on converting illiquid assets to liquid funds for future opportunities and let it act as a cushion against future risks.
Wishing you all ‘To Live For Today , Plan For Tomorrow’