Struggles of On-going Covid-19 Scenario

It has been almost a year & a half since humans were hit with the novel Coronavirus, March 2020 marks the entry of this deadly virus in India which was the least anticipated to turn into a global pandemic. When the virus emerged, little did we humans know about the intensity of the impact and the footprints that the virus was going to imprint on the land. The physical and mental disruption by the on-set of Covid is factually evident, but the impact that Covid has left on the financials of the common man has been under weighted during the outbreak of virus. The struggles of the on-going lethal pandemic are now not only limited to the health of the beings, but have extended to the financial complexities of people in developing countries like India.

The middle class section of the country has been hit worst by the inception of lately witnessed second wave of the Coronavirus mutants. All the progress, growth & development of past decades are going vague, as millions of middle class families are struggling to survive both physically & financially the dreadful virus. As per certain reports, around 75 million people have entered the class of ‘below poverty line’ post 2020 Covid outbreak. Unemployment has spread across the country making it even tougher for the middle class section to survive. As per other reports, around 120 million people belonging to the small trading class, wage earners and other SME groups have lost their livelihood due to the pandemic & crisis. Even the students section has been affected badly by the closure of schools, colleges, universities & institutes. But, overcoming the barriers, this virus has put forward to us, can be made a bit simple to tackle by making conscious efforts.

How to Survive Pandemic Financially - Indian Edition

Tips to Manage Finance’s in the Pandemic

We, at ConceptHack, would be gratified if we would be able to help you or your family by listing few important money management tips to survive the pandemic financially in a developing country like India, so that the middle class section comes out of the crises with least financial damage, and with readiness to rebound the economy post Covid scenario.

Don’t Succumb to Fear

Easing the anxiety of your mind would be the first & foremost tip to survive the crisis not only financially, but mentally too, as overcoming your fear would help your mind take rational steps to ensure survival.

Save, Save & Save

As long as one receives revenue, the only mandate should be to save as much income as possible. The funds saved now would taste sugar when cash is not on hand. Cut off unnecessary expenses like over spending on unwanted grocery, ordering outside food, unnecessary purchases etc. and control your cravings to spend on things apart from essentials.

Budgeting

Budgeting not only proves to be one of the important tips to manage pandemic, but an absolutely essential life skill to learn to manage finances in the most efficient manner for a lifetime. Before making any expense after earning your monthly income, make sure your budget is in its place and you don’t compromise on it. Try applying the 50-30-20 rule of budgeting consistently, where your income divides as 50% - Needs, 30% - Wants, 20% - Savings. Make sure making list of essential bills/EMI’s ringing your bell monthly and arrange for those essentials way before its actual accrual. Budgeting starts with planning your finances on a monthly, quarterly, half-yearly and yearly basis, so do not skip planning your budget for every time slab. Plan your big purchases like buying a car, well off to avoid overspending at a particular time. Also you can crunch your budget specifically during the Covid times to adjust more to medical expenses and other necessities. Furthermore, keep a check on your health insurance premium payments on a timely basis, as it is most important in current tough times and if you don’t have health insurance, apply for one most suitable ASAP. Moreover, another tip to take care of is to cut down or delay any kind of borrowings be it from a bank, friend or even a relative. Try building assets rather than inviting liabilities by investing budgeted amounts in SIP’s, mutual funds or stocks.

Emergency Fund

Building an emergency fund from your savings is central to meet the medical expenses to deal with the infection treatment, if caught by anyone in the family. Lack of emergency liquid funds, might hinder on hand availability of cash as and when required, so don’t miss to build emergency funds which consist of on-hand cash, or liquid assets which can be utilized immediately when required. Control your urge at every cost to spend those funds into any essential reason other than medical emergency.

Continue building new & strengthening existing skills

Continuous Upskilling yourself is more like building & investing in yourself today to make a better future for yourself tomorrow. Many of us may have a free time today due to partial lockdowns or market slowdown, so why not utilize the time to build new skills or strengthen existing skills in a way which can be beneficial to us in future. In order to build new skills, identify areas of your interest, get social media research going, enhance networking, Listen Podcasts, attend online Workshops, read articles or enrol for online programs. We, at ConceptHack, too offer well-crafted online courses through unique conceptual video learning experience for amplifying practical knowledge & up skill. The courses offered are varied and you can also find numerous conceptual videos for Free to clear the basics & logics about different topics.

Create a Passive Income for yourself

Creating a passive income or in layman terms a side income has become much necessary in today’s economic uncertainty to withstand the family responsibilities & expenses with a striking balance of decent standard of living. After building new skills or improving existing skills, you can opt for creating a side income for yourself by doing a part time work or some freelance work. Today in India, there are ample of platforms available to network & find a part time or freelance work to earn that extra penny to save even more for such difficult times, some of which are listed below:

Resist your splurge to rebound once things start getting normal

It is human nature to bounce back upon things, situations mandatorily imposed upon without it being liked, but once the Covid situation seems getting lighter & normal resist your urge to rebound & forgo the above tips to result in overspending. Keep a check on your necessities, your budget and don’t take any such step which would waste all your conscious efforts as per above tips to remain economically well off.

Bottom-line

The times are tough, getting back to normal is out of vision currently, so we all have to adapt to the new normal of the Covid crises, as we all are in this together. Do your bit by making an effort to donate extra cooked food to someone needy, or by donating your old clothes, or donate any possible item which would otherwise be discarded by you. Be compassionate towards your family, friends, colleagues and everyone around you, as you never know who is going through what. Extend your support in any way you can, when one is in need. Make yourself ready to face the worse with faith of better tomorrow, as this too shall pass. Together We Can!