5 personal finance concerns during COVID-19 outbreak

The nation is currently facing unprecedented times with the outbreak of COVID-19. The pandemic has pushed several cities all around the world into a complete lockdown. Businesses have either come to a halt or are trying best to manage overall operations through digital mediums while maintaining proper social distancing. 

As an outcome of the situation, people are no longer chasing business and financial goals, and the emphasis has now shifted on maintaining proper health while exercising caution to prevent the spread of the deadly virus. However, the times of crisis have made it essential for people to look after their financial health as well. 

Here are five ways in which people can address growing financial concerns during COVID-19 outbreak:

Revisit financial goals 

It is essential to take some time to review and prioritize financial goals. If the business activities are on a pause, it will impact the income, which in turn will affect the monthly budget, EMI outflow, insurance premium, investments and new asset acquisition plans. One of the leading NBFC, Clix Capital, is lending a helping hand to its consumers to apply for a moratorium to get some time to stabilize finances. Further, one may have to use savings prematurely to keep money aside for the emergency. Hence, the financial goals need to realign with the global crisis to sail over the tough times smoothly. 

Stop making decisions based out of fear

The old saying, "Patience is a virtue" could not be any more relevant in the present situation. The lockdown may spur fear, but nothing is permanent and the tough times won't last but tough people will. The need of the hour is to be patient and not take any financial decision out of fear. It becomes incredibly vital when it comes to long-term investments. 

Reduce financial obligations

To combat the situation, one needs to try and reduce expenses as much as possible. Further, it is essential to stay within its parameters and budget for the coming period. If one has surplus funds, it will be better to reduce loan obligations. It will not only reduce the interest cost but lessen the debt burden as well. Hence, it is beneficial and advisable to keep expenses to a mere minimum, exercise self-control and don't give in to panic buying. 

Guard health and wealth

In the time of the global pandemic, health has never been more critical, and hence one must indulge in the proper care of the health, self-isolate, stay at home. At the same time, it is essential to get health properly insured. Moreover, several new-age platforms are offering complete digital financial products with a paperless process and no human contact. The leading NBFC, Clix Capital, has become a partner for many to help them guard their health and wealth. 

Keep sufficient liquidity to meet urgent needs

One must have enough liquidity to meet the daily requirements. Further, it is advisable to keep the money in such instruments that can be easily liquidated. Even while budgeting, an individual should always set out an amount that can be used if the lockdown were to be extended. One may also get in touch with their network of friends, family, colleagues, investors etc. who can help with emergency funds if need be.