That’s exactly what we are going to address here with 5 simple DO’s:
1. Emergency/Contigency Fund: Always.. Always have an untouched buffer of 6 months’ domestic expenses reserved for unprecedented emergencies.
2. Never hustle in financial matters: Never take any financial decisions in a haste, which is driven by either fear or panic & greed. When the markets & economy is shattering, a negative sentiment creeps in. We start thinking that every enterprise including real estate, stock market, mutual fund market, all business sectors will face hurdles. We start withdrawing our investments in this panic mode.
On the other hand, when things are moving smooth, we get over-excited in thinking that every sector in the economy will travel only north & start investing carelessly, overlooking the actual valuations.
“Fear & greed are the two sides of the DEVIL’s COIN, resulting only in stress with huge losses. An intelligent investor always uses ANGEL’s COIN with fact & evaluation being its two sides.”
So, the Golden Rule is – Never ever hustle in your financial decisions.
3. Clarity of Goals: When you have absolute clarity about what you want to achieve, you actually can transform any unprecedented emergency into an opportunity. Let me explain this if you are planning of your retirement after say 20 years, your well planned buffer of cash-on-hand can fetch you an opportunity of bottom-fishing of so many blue-chip stocks available at unbelievably low prices.
So, the amount you invest in these down-times can actually bring you a surprise of fortune. In-a-way, you can transform this Bane of CORONA into Boon of wealth for yourself; provided you do have the clarity of your Goals.
4. Limited Liabilities: ‘Keeping the Liabilities to a Limited Level’ is a Golden Rule of financial freedom & happiness; no matter what you afford today! Many-a-times, when we are financially very much well-off, we tend to spend on bigger home, a farm-house, bigger & better high end luxury cars, expensive five-star travels-n-stays, frequently upgrading house interiors, etc.
It may certainly pamper our ego at that moment, but it is temporary. ‘Miss Destiny Unprecedented’ has a potential to disturb & disrupt your Royal Parade brutally. Being humble & offering respect to the great uncertainties of life provides a priceless cushion & forbids you to step backwards.
5. This Shall Pass: Be happy & don’t worry too much. No discomfort or pain has ever been permanent on this planet. Even this shall pass and much sooner than we all expect. Normal happy life will thrive sooner..
Emergency Fund No Hustle Clarity of Goals Limited Liabilities
If we follow this four-way formula scrupulously, CORONA PANDEMIC can prove to be a Blessing-in-disguise indeed to all of us.
In case you want any help with your money management please write to us at firstname.lastname@example.org