New Delhi3 hours ago
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There may be a possibility of war situation between India and Pakistan. In such a situation, your financial stability may also be in danger if inflation increases.
You can make your finance strong by adopting these 6 things amid challenges like stock market fluctuations, inflation, job or impact on business income.
1. Priority to Emergency Fund In the era of stress, make an emergency fund covering the necessary expenses of 6 to 12 months. In this, calculate the necessary expenses (rent, electricity, gas, ration, school fees) of the month of the house and deposit at least 6 months.
How to do? Submit a part of the month’s savings directly into a savings account or FD. In the era of inflation, this fund will reduce the pressure on your pocket.
2. Check war or riot cover in insurance policy Check in your health and life insurance policy whether they cover conditions like ‘war, terrorism or riot’ or not. Most of the policies do not include it, but in some special plans it may be add-on.
Along with this, please inform the family about all their investment and insurance. So that they can use it in any emergency.
3. Make stock of essential goods Do not panic as stress increases. To avoid inflation, you can opt for smart shopping. Gradually increase the stock of lentils, rice, flour, oil, detergent, and medicines. Buy large packets (5kg rice)-it can save up to 10-15%.
4. Make gold and diversified portfolio Keep your investment diversified under stress conditions. For this, gold can be a better option for investment. Invest in digital gold or gold ETF.
Along with this, do not stop investing in the ups and downs of the market. Continue SIP, it reduces vollatures. Historical data suggests that the markets recover again in some time.
5. Save first, then spend Golden Rule is to withdraw the amount of savings or investment as soon as the salary is received. Then spend the remaining amount. The strategy of spending first and investing the remaining money is not good. Ensure investing 20% of the salary.
6. The most important, do not panic under any circumstances Avoid social media ‘fake news’, take updates from government websites (PIB, RBI) and reliable sources. Do not invest money on rumors in the stock market. Take decisions by considering the advice of experts.
Preparation is your biggest strength when there is tension on the border. Small steps will not only save you from inflation, but will also give financial security for the future.
