How To Deal With Financial Impact Caused By Coronavirus
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We live in uncertain times and as we try to grapple with the lockdown and understand the impact of coronavirus on our health, there is no disputing the resulting effect of it on personal finances, the economy and business.
Stress for the future and fear of the uncertainty that lies ahead is at the forefront of current challenges that we face as humanity emerges more fragile at the start of 2020. This is against an already strained backdrop over the last many months of political, economic, financial, climate change and technological disruptions. And not to mention a consumer driven economy that has been put at a standstill. The first quarter of the second decade of the 21st century, has been one of the most trying, to say the least.
Prime Minister Shri Narendra Modi in his address suggested that we need two key skills of resolve and restraint to navigate these challenging times. And while we grow accustomed to social isolation, spend more time at home than we bargained for, assess our individual financial situation and try to adapt to this new reality, here are some ways we some ways by which we can reduce our own anxiety towards our finances.
1. Prioritize Yourself: Staying present and focusing on our own emotional, mental and physical health is the key during this time. Remember, stress only serves to build up cortisol, which weakens our immunity, brain functioning and can have a serious long-term impact on our wellbeing. Developing critical skill set of resilience and agility by looking inwards, adopting a solution-oriented and forward-looking mindset, will help in navigating these difficult times. It is important to take some time in the coming weeks to reflect and focus on individual development. This is a great time to start that meditation routine, that fitness program or that online program you have been stalling for a while now.
2. Acknowledge And Accept: It is important to remember that we are living in uncertain time, where no one could have prepared for themselves. Accepting the situation for what it is, acknowledging the new way of being and understanding that this might require a shift in how we live and work will be important to get through this. Change, for everyone, is one of the hardest courses to steer. So be aware of your resisting beliefs and work to manage those limiting thoughts as you deal with unparalleled amounts of change in this period.
3. Be Careful With Your Spending: This is the time to focus on the essentials and cut any spending on the frills. Being homebound creates the perfect opportunity to re-evaluate your financial situation, build an emergency fund and focus on long-term planning. It is important to prepare for job losses, business impact and more, so staying practical and being realistic will enable provisioning for the near future effectively. Make sure to also look at how you can contribute to those less fortunate whose families won’t be able to buy even the basic groceries in the coming days.
4. Hold Off On Risk-Taking: If you are not a seasoned investor, this might not be the best time to go on a risky buying spree to grab a few deals for your financial portfolio. Stick to what you know and understand, especially during these unsettling times. Remember, this is a time to be pragmatic and cautious. It’s important to step away from the noise and identify trends and not fads when making investments.
5. Lean On Your Network: In moments such as these it is our relationships and networks that hold us in good stead. Social distancing and isolation does not mean that we need to be socially disconnected. Keep your loved ones close and check in with your friends, colleagues and networks. Use video-conferencing and calling to your best advantage even schedule a virtual catch-up if you can.