The Covid-19 pandemic has resulted in massive disruptions in the global market. The declining economy and unemployment have created a mess for the public. It is essential to prepare yourself and minimize the financial impacts as much as possible, in this critical period where many have been a victim of unemployment, thereby disrupting the financial goals. This is especially crucial now that the cases are again on a rise.

The financial impacts have taken a toll on businesses, jobs, and incomes across socio-economic sections, forcing almost everyone to take stock and reconsider their financial plans. Since the beginning of the lockdown, the loss of jobs led to a decline in investments. Those in the lower-income group are at an added disadvantage because of the lack of financial literacy. The pandemic has been impacting our financial planning. Now, it is time to take steps to reorganise and improve the planning for this year.

Let’s give your financial plan a makeover

Invest in stocks- As a financial advisor and trader, I always insist people invest in the stock market. The returns are given by this massive bull market rally from April 2020 till February 2021 would have shocked everyone, especially after the March 2020 crash. This is the main reason for not timing the market, taking the right knowledge, and staying invested in the right segment of stocks. The indices hit 52000 and 15300 for Sensex and Nifty respectively. The rally in banks has been very strong and the BankNifty Index conquered 37000 with ease. Notwithstanding the recent correction, with the right knowledge, investing in stock can turn out to be a great investment option.

Emergency fund- The pandemic has made us realise more than ever the importance of emergency savings. Most people fail to understand how essential it is to save for the worse. I would personally recommend saving at least six-month worth of expenses going forward. For starters, you can trim non-essential expenses and dedicate any extra money saved to build your emergency fund.

Re-evaluate your budget- The simplest solution is to cut down your expenses by making a list of all the things you spend them on and prioritizing them and spending only on the items on the top of your list.

Financial Literacy- The most important aspect of financial planning is financial literacy. Without it, the decisions that we make or do not make can threaten our financial security since it lacks the solid foundation required. Formal education helps one to make a living but it is self-education that helps one to survive against all odds.

Health Insurance- This has been the most ignored part by most of the people who were in for a shock by the huge Covid hospitalisation bills. Everyone above 28-30 years of age should ensure that they along with their dependents are medically covered.

Financial literacy and inclusiveness can help fight the devastating effects the pandemic has had on the earnings and savings of people. But the process of spreading awareness itself is crucial right now given the covid-19-related circumstances. We always hope for the positive, but let’s be prepared for any surprises that are thrown at us!

The author is Co-Founder, Catalyst Wealth

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.