This Corona Lockdown may go on longer than expected. My suggested 12 Tips for you to face such kinds of situations:
- Create an emergency fund of 6-12 months for personal n business expenses in saving account/Fixed Deposits/Liquid fund which you can use on short notice.
- Don’t delay in covering yourself with sufficient Life, Debt, Disability, and Medical cover. You can buy most of these through the online method. Pay renewal premiums online so that your existing policy doesn’t lapse during such a tough time. Contact your advisor for guidance.
- Put in place a plan for basic passive income by way of pension or annuity as your active income can disrupt n stop any time by any event. Choose guaranteed returns schemes as the rate of interest is reducing at an alarming rate.
- These kinds of opportunities you get once in a decade in the stock market. You can buy good stocks or mutual funds with a time horizon of 3-5 years for very good returns either from additional spare funds or switching from Debt funds. Don’t stop SIP as this is the best time to accumulate.
- Give your health top priority. Learn to exercise at home by way of yoga, walk, jogging, Cross-training, etc as a backup plan. Don’t lose your hard-earned health as it is your true wealth.
- Restart some hobbies like reading, music, art, cooking, etc
- Learn new skills through various online courses or YouTube videos.
- Have a very good internet connection at home too.
- Equip your key team with system n data to work from home. Have your critical data all-time accessible from cloud backup.
- Enable net banking in some of your bank accounts for essential payments.
- Use zoom meeting, LinkedIn, etc for business instead of spending time on WhatsApp gossips. Keep in touch with your clients, vendors, consultants, staff through phone or email.
- Don’t go on a mad rush in business again. Consolidate what you have, do only what you enjoy, reduce debt, relax, invest more in your health, family n relationship.
CA Mahendra Kamath