How should you change your financial resolutions in the pandemic

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Here's How You Should Change Your Financial Resolutions in the Pandemic
Here's How You Should Change Your Financial Resolutions in the Pandemic
Disclaimer
Disclaimer

The ongoing COVID19 pandemic has had some far-reaching effects on the economy. Personal finance took the biggest hit at an individual level, with instances of job cuts, slashed salaries, and activation of loan moratoriums being reported across the country. It is also something that rarely gets discussed because everyone has a different setting and no one-size-fits-all solution.

But now that the economy is slowly recovering itself, it is time to tweak your finances. It would help if you created a plan that gives you more power with your wealth as you try to stabilize your financial resources and affairs. Here’s a quick guide to help you get started.


This is the first thing to ask yourself. Has the pandemic affected you? If yes, in what way?

If your finances have been affected – either through a job loss or a medical emergency – you should list those specific changes. This can exhaust your liquid fund, a sum borrowed from a friend, or a lapse in paying an installment.

A list of affected areas of your finances will prepare you for the type and degree of the changes you will need.

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Status of existing and ongoing Investments

The next step is to assess your savings and investments. Barring the excess money (against your monthly average) that you have spent (to get through the pandemic so far) and the shortage you may have, how does your profile look? Did a job loss or a pay cut affect any of your investments? If yes, in what way?

Answers to these questions will help you plan your next steps.

Tweaking your finances – Two-Pronged Approach

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You can start with two things:

Recreate or refill your liquid emergency fund

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Tweak some of your investments:-

You can start with two things:

-Recreate or refill your liquid emergency fund

-Tweak some of your investments

Having an emergency fund is essential, so start by recreating or refilling it. The pandemic is not yet over, and you may need to dip into it again in the future. So, please keep it to the brim, or maybe even increase it.

Next, you should focus on replacing existing investment instruments with ones where you can earn a higher interest rate. Stocks, sovereign gold bonds (SGB), and mutual funds are great options to invest your money for long term benefits.

Utilize mutual funds and other instruments with high interest

Investing in mutual funds is a good investment avenue, but the risk of market volatility deters many. Therefore, putting some of your money in mutual funds is a great way to sail through this pandemic carefree.

A better financial plan means better decisions and better resolutions that are tailored to support you on rainy days. Recreating an emergency fund and investing in mutual funds are two potential ways to stabilize your finances. Use the following Wealth Builder Calculator to plan your investment strategy smartly. Or consult your financial advisor to help you out.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

To know more about KYC documentation requirements and procedure for change of address, phone number, bank details etc, please visit https://bit.ly/36BTr0u. One-time KYC registration is mandatory to invest in mutual funds. You can complete your KYC by submitting the following at any of our branches or collection centres: a) Duly filled and signed Central-KYC form b) ID Proof and Address Proof: Any Document notified by the Central Government, self-attested. PAN is mandatory for investing in mutual funds. c) Proof of Address: Same as Identity Proof (except PAN) d) Recent passport sized photograph. Originals must be carried for verification. Investors must deal with/ invest in only SEBI Registered Mutual Funds. Details are available at www.sebi.gov.in. Investors can reach us on +91-8048893330 or write to us at mutual@kotak.com. For escalation, write to sonali.khokhani@kotak.com or lodge your grievance with SEBI through their SCORES (SEBI Complaint Redressal System) Portal at http://scores.gov.in.


Disclaimer: Content Produced by Kotak Mahindra Mutual Fund

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