Here’s how to stay financially strong during COVID-19 pandemic

The COVID-19 pandemic has shattered people’s lives, both personally and financially. The havoc created by job losses, pay cuts, layoffs, and closure of small and medium businesses has forced people to restrategize and rethink their personal finances.

Also, the collapse of the healthcare system and humongous cost of the treatment has forced people to use all their savings. This dastardly effect of COVID-19 asks for a renewed approach to deal with an evolved environment. 

Therefore, it is very important to step up your game when it comes to investments to make your future secure.

Insurance

Taking insurance plans becomes pivotal when it comes to such an unprecedented crisis. So health and life insurance plays a critical role in any financial plan. These insurance plans act as saviour during difficult times. 

Whenever someone is admitted to hospital, its bills are quite high and therefore it becomes impossible to pay such a hefty amount without insurance. It is highly advisable to buy such a policy that takes care of your needs. 

Emergency Fund

An emergency fund always comes in handy in situations such as sudden job losses, health emergencies and more. Touted as a shock absorber, it has the potential to cover many months of household expenses and it takes a lot of time to create such funds. 

For that, you have to save a considerable amount of money every month so that it becomes fruitful in future. It is important to keep 50 percent of money in the savings account and the remaining amount to invest in bonds so that it becomes easy to liquidate. 

Diversified portfolio

After insurance and emergency funds, it is important to have diversified investments so that you can enjoy higher returns and lower risk.

Long-term investments

Long term investments can include investing in stocks, bonds, real estate and cash. Though they have their own set of risks, it becomes handy for higher rewards. 

You have to make a well thought and informed decision and then make a plan on how and which ones to invest in.