Managing your money during Covid-19

We all know that the whole world is facing a critical situation of a global pandemic. Corona Virus which is also known as Covid-19 spreading in more the 200 countries. The latest analysis shows that more than 28 lacs of people are being affected by this virus the counting increases every minute. More than 1,90,000 peoples died because of this global pandemic.

To prevention of spreading this virus government of various countries took the action of complete lock down on their regions. This virus is not only the reason for 1,90,000+ deaths but also brings the financial crisis in the whole world.

The economy of most developed countries like the USA, England, Spain, Italy, and many other countries becomes falling continuously. Their share markets are unstable and risky. In this matter to invest our money is become more critical than before.

In this article, we’re going to discuss the ways to Managing your money during the lock down. Here we’re going to talk about the ways that how a person can manage their money in this global pandemic.

How to manage the EMI in Covid-19

Most people buy luxurious goods like Car, Motorbikes, Refrigerator and many other things on EMI. The payment of these goods is paid by the bank to the vendor and bank charge that amount to the customer including interest which becomes profit for the bank.

In this time where the whole world is locked down than the customers who took a loan from the bank become tensed because of their earning sources like their job and businesses are being closed in this period. To prevent this problem many banks announce that the loan holders are free to pay.

The government also declares that the payment of EMI totally depends on the customer’s choice. State Bank of India (SBI) set the 3 months limit to free choice for paying the EMI. To avail of this opportunity, you can invest that money to some other sources where you can earn interest or can contribute your money to social welfare.

How to manage your savings during Covid-19

People made savings to face the future contingencies. In this pandemic, the supply of money becomes very low. In this time you can use your savings to do daily transactions. The liquidity which is available in your hand can be used for transferring of liquidity to others’ hand in return of interest. It means that you can give your savings to one someone needed and can charge some interest from them.

You can invest your savings by purchasing some insurance policies. Many online insurance companies give you insurance policies at a very genuine rate. They also offer corona insurance for you at a very reliable rate.

There are many other ways to invest your money but these are suggested to the best ways to manage your money in this period.

Managing credit cards in this Covid-19

In this lockdown period credit cards plays the role of a weapon to fight the financial crisis. According to a recent report, an analysis said that in America more than 70% of people who live on rent pay their rent on 5th April.

In the lockdown period where all the working of the country is being stopped, renders can use credit cards to pay the amount of rent or can use this credit card for other payments. To manage the payment of credit cards you can use the amount through credit card they can deal with this global pandemic.

How to manage your expenses in the period of Covid-19

Covid-19 becomes the reason for approx 2,00,000 deaths. Because of the complete lockdown, the vendors are guided by the government to close their business. Only the shops of necessary goods like vegetables and groceries are open.

I am not suggesting the ways that how to manage your expenses in a period of Covid-19. I only recommend you to make your expenses as least as possible. To buy only the necessary goods you can able to manage your expenses.

Managing liquidity in this lockdown period

The period of lockdown is also an opportunity for the money lenders. The money lenders can distribute money to some needed persons on interest. To maintain the liquidity trap, persons can use their money to earn interest.

If you have a good level of liquidity then you can contribute to can save your liquidity for future contingencies. Plenty of liquidity can help to increase investments. The lockdown makes the complete lockdown and that why the share market becomes depressed. This is a good opportunity to but the share at a low rate.

Managing your investment in this lockdown period

If you have investments then you can sell those investments and can generate liquidity to faces future contingencies. The share market becomes unstable and risky and many people are continuously selling. You can also earn the benefit of the investment. If you’re facing the continuous falling condition of investment then you can sell out to minimize your loss. Plenty of liquidity tends to increase the investment for future contingencies.

Moratorium provided by the RBI (Reserve Bank Of India)

According to the recent decision of RBI, the Moratorium facility should be extended unless the borrower opts out to it. Many banks are also offering options to pay the loan on their choice.

According to the guidance of RBI, many banks and non-banking financial institutions said that moratorium is under by default. RBI also makes the decision for decreasing the repo and reverse repo rate to increase the liquidity in the banks.

Conclusion

Covid-19 becomes the reason for the financial crisis in the whole world. It is also becoming the reason for a recession in the whole country. To manage your money by these ways you can become a true Covid-19 fighter. It is a very serious problem and the proper utilization of our assets and source of assets will make you profit or minimize the loss for future contingencies.

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