Currently, the world is going through one of the toughest times. We are living in what the economists terming as ‘the worst recession’ from the Great Depression in the 1930s. The world was brought to a standstill by one of the worst pandemics in history. The overall losses that everyone has suffered are massive. The economies came crashing down, and there was instability everywhere. On one hand, the Covid-19 threat had to be fought off with all the might, and on the other hand, we had to try and stop our economies from crashing down.
When the lockdowns were announced in a lot of countries, all their work and economy was stagnated. Countries were facing the brutal brunts of initiating the lockdowns. But, there was no other option! It was mandatory for the safety of the people. Now, some countries who have established themselves well may have had it better than some others.
However, for emerging countries like India, a lockdown was unsustainable, but they had no choice. Saving the lives of people had to be the number one priority. However, it did deeply weekend the economy. These glaring scars on the economy are here to stay for a long time. Since there are no viable options on the table to accomplish both controlling the pandemic, and stabilizing the economy, we are struggling to attain both things. There have never been more pay cuts, layoffs, double digits unemployment rates, and a total slack in the new hiring process.
But, the harshest of experiences become the greatest of teachers. Going through these conditions and surviving in it is not an easy feat, but we are doing it. Don’t you think it is bound to teach us something? This ominous grey also has not one, but many silver linings to it. The economy suffered the most and which is why we have the best lessons to learn about it. Here are some of the best lessons that pandemic has taught us on investment.
Build a safety net –
Never in our wildest dreams would we have thought that we would have to sit at home and do nothing for a very long time. And yet, here we are. We were in a lockdown where the majority of people were confined to their homes not working. A lot of people lost their jobs. So many small-scale as well as large scale industries were affected and they had to let a lot of people go in an effort to sustain their own businesses. It was a truly horrible ordeal. A lot of people were struggling to even make their ends meet as they did not have any source of income.
Now, what does that teach us? It teaches us that we need to have savings! We need to have something to fall back on if we are to be in such a situation. It is advisable that we have savings that will sustain us for at least six months. So that in a situation where you are jobless or in such a fix, you can live comfortably without worrying about your basic necessities.
A financial crisis is a time of great instability. Business owners should be prepared for such a situation so that the people who are dependent on them do not have to be cut off. They need to have emergency funds that could sustain the company and its employees in trying times. We cannot think about living from one day to another. We have to think bigger than that.
This security net gives us an assurance that should such a situation occur again, we can be prepared for it. So, our first and foremost aim must be to plan in advance. We have all heard this at least once in life that you do not dig well when you are thirsty. You dig it before because you know that you are going to be thirsty at some point. These funds that you have kept aside can come to your aid whenever you are in an emergency and you urgently need money. An investment makes your money earn you more money and it is a very good and alluring concept. But, a word of advice, do not do it without having savings to fall back on, as these investments won’t come in handy for such unforeseen troubling conditions.
Health insurance is mandatory –
The pandemic has made for very big holes in our savings. The Covid-19 is a costly affair. The tests require around 1500 rupees. If you are positive, then the medicines cost furthermore. If the situation worsens, then there is the cost of covering ICU expenses. It takes about Rs. 10000 per day. It will put a lot of strain on us if we do not have medical insurance. One can only imagine what these lengthy medical bills would affect us.
Life is extremely unpredictable. Health matters the most. And we need to ensure that we have got it covered. Opt for the medical insurances that will cover the costliest of medical emergencies. If you are working in a company, make sure you know about the medical policies there.
Medical emergencies can happen to anyone at home. We should not have to compromise on anyone’s treatments just because we did not have enough funds to cover all the expenses. There are a lot of unexpected things that could happen to anyone at any time. It is unwise to leave things to chance. We cannot put our safety and security at risk. Our first aim should be to look after ourselves and our family. However, we also need to be prepared for the possibility of something happening to someone.
Quality health insurance ensures that we can have the best possible medical health care. The Covid-19 has had adverse effects on the respiratory system. If the situation becomes critical then people have had to be put on life oil support. It just goes to show that even small things like cold and cough could go on to become life-threatening. So, no matter what we think, we must be prepared for anything. It is just what they say, hope for the best and prepare for the worst. It is the best strategy for almost everything.