The Coronavirus quarantine has changed the world as we know it. Not only has our health and regular routines been affected, so has our finances. The fact of the matter is, once the lockdown ends the world may change in ways we don't even know yet. As seen in past economic slowdowns, measures like salary cuts, mass lay-offs and reduced spending power will be visible and have already begun to be enforced. It's an important time to take charge of your finances and budget your expenses. To do so, Swirlster spoke to Satyen Kothari, a prominent figure in the Indian fintech industry with 24 years of business acumen, an angel investor and serial entrepreneur.
Expert Financial Management And Budgeting Tips To Follow During Coronavirus
This is the right time to take charge of your finances with these expert tips.
1. Limit Discretionary Spending
Don't spend on things you can live without. We each have different definitions of what is essential. It could be abstaining from food deliveries for some, for others it could mean shopping less online. Reuse what you already have; you may discover some hidden gems at the back of your closet.
2. Analyze Your Investment Portfolio
This is a good time to analyze your portfolio by rebalancing it or switching over to better quality options. Working from home allows you to better control your finances so it can auto-pilot for the next few years. Aim to build a perfect portfolio for your family and yourself.
3. Opt For Good Health Insurance
Medical care is essential, unavoidable and often expensive. If you don't have good health insurance, this is a good time to buy a simple health plan that covers you and your family. You should look for a top-up cover for critical illnesses even if your basic insurance is covered at work. These top-up policies are inexpensive and a huge benefit for covering the most expensive health issues.
4. Automate Your Investments
As investors, we tend to make our biggest mistakes when the markets soar or crash. To that end, it would be wise to automate your investments via direct debits and SIPs so that you're not tempted to make any brash decisions.
About the author: Satyen Kothari an angel investor and serial entrepreneur with over 14 companies across industries like payments, solar and education. He has founded multiple businesses including Cube and Citrus Pay. He has cultivated his expertise with experience of working with CISCO, Apple and more.
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