As a developing country, India’s economy has seen a slow but steady progression, however, the ongoing pandemic has resulted in the complete lockdown of the country with major factories and industries shutting down during the months of March, April and May. This resulted in the slow decline of the economy with over 40 million people losing their jobs.
In an effort to overcome this decline, the Modi Government introduced the Covid-19 Relief Scheme which aimed at helping lower-middle-class families with cash and food supplies but also the common man with their personal finances. The RBI came up with various schemes to financially help the common man during this crisis. Some of those schemes consisted of increasing the time period within which one can pay a loan, relaxations on income tax returns were allowed and credit card payment deadlines were also extended.
However, these schemes only had an extended period of a couple of months and with the new unlock guidelines, they're all coming to an end. This has caused panic and worry in may peoples mind as finances are still strained. With the economy reopening up and payment deadlines looming over your head, following a few of these simple tips could help you navigate the economy in a post COVID era
Job security, pay cuts and health worries are just some of the concerns at the top of everyone's head. One should prepare for unexpected emergencies to ensure smooth sailing when the time comes. Planning one’s future course of action will not only help give clarity but also prevent you from panicking. This planning could range from saving up money for emergencies to finding alternative ways to support yourself.
Don't be afraid to re-invent yourself
Changing times demand a change in you, whether it’s learning a new skill set or putting effort into doing something you've always wanted to. Monetising a skill that you already have could be a possible backup option. “I have always loved baking but with a 9-5 job, I was never able to pursue it. Since lockdown has started, I started baking for my friends and eventually started baking for my neighbourhood. This was a good source of extra income while doing what I already love.”, Ananya tells Bingedaily on how this extra source of income has helped pay her bills. While this could be a new fun way to earn money, tightening the belt during such a time is also advised.
Cut your costs
If you're wondering about how you’d pay your next months house EMI, its time you start thinking about your spending habits. Entertainment subscriptions, online shopping and UberEats orders could take a backseat while you focus on getting your credit up. This may seem like a drastic step but its always better to be safe than sorry. Besides, these privileges could always come back into your life when you're financially more secure.
Do everything you can to financially secure yourself
Someone had once said that if you think of a recession as a ‘minimalist way of living’, you are more likely to succeed in surviving it. Getting rid of excess items can be extremely cleansing mentally and even physically (think of all the clutter-free space now) . Garage sales and donation drives are just some places where you can give away stuff you don't need to people who might.
Talking about your needs, this could be a good time to double-check on your assets as the could be beneficial in getting you out of any trouble. Whether is the property that you invested in or the Mutual funds and Fixed Deposits in your name, making a note of all these assets is an essential safety net that you absolutely need.
Try making the best out of this worst situation
Thinking positively when you're surrounded by negatives may seem tough but it is not impossible. While this may be a time of uncertainty, surviving this crisis would teach you lessons in resilience and perseverance like no other. Taking precautions before being hit with a crisis is the most sensible advice that I have gotten as an adult. These precautions could be anywhere from saving your cash to even completely re-inventing yourself.
These are definitely trying and changing times but like Thanos had said “change is inevitable” and only a fool would try resisting it. Economies rise and fall and one must brace themselves for these ups and downs. Navigating these uncertain times may seem daunting but even the slightest amount of planning could save you tonnes of trouble later on. Think of this as another perk of adulting and follow these steps to secure yourself during this unstable economy change. Whether this post COVID economy change would be for your better or worse, depends on the steps you take to protect yourself.