The ongoing pandemic has created a crisis world over and this unusual lifestyle of staying indoors and working from home has become a routine now. And even though the virus has created havoc in the day to day life, the scarcity of avenues to spend has resulted in a momentary spike in the savings. As the discretionary spending goes out and forced savings to come in, grab this opportunity, and invest these savings made gloomy days wisely to make your future bloom.
Here is a list of options on how you can help you make the most of your lockdown savings-
- Cushion up your Emergency fund
The ongoing crisis is a classic example of why having large enough emergency corpus covering at least for 4 to 6 months of living expenses is essential.
- Consider investing in Liquid Funds
You may park your extra savings in liquid funds till the time you decide what you actually want to use them for. You may use Aditya Birla Sun Life Active Account app on your mobile to invest in liquid fund with a single swipe.
- Pad up your Existing Goals
Eventually, we will all go back to our old lives, but you can take some saving habits from this new normal. Start an SIP or step up your existing ones now to give you the much-needed push to your existing goals.
Also, volatile markets are suitable for SIPs and this is a classic period of volatility wherein an SIP could come handy!
- Eliminate unwanted debt
Home loans are tax-efficient hence can be considered as a good debt. But personal loans and credit cards are bad loans and increase unwanted expenditure and carry a high rate of interest. Eliminate them with the help of your savings.
- Review your Life & Health Insurance needs
Staying safe is important and so is being prepared. Ensure that you have sufficient health and life insurance cover for you and your family. If there is a gap, it could be time to buy additional insurance cover for your whole family.
Times are tough, but this too shall pass. Instead of spending your time being anxious about the future, use the opportunities created in these tough times to make some meaningful decisions that can reap you benefits for a lifetime.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.