5 Tips to manage your finances post lock down

World is never going to be same post COVID lock down , so do business. No one can say when this lock down shall be over. Not even Governments , scientists, astrologers . No one ! But the big question is how to survive and stay ahead post lock down ?

Tip 1: Think Differently

For businessmen and professionals, it is time to fine tune their business model. Use your business working capital in stocks and not debtors. Strictly avoid doing sales on credit. By doing this ,you may lose sales but cash shall not be lost. Just think differently in different direction ,what others are thinking, you will find a way !

For those , who are in job sector, my tip is to start exploring self employment opportunities side by side. Post lock down , Job cuts or pay cuts shall be very common.

ip 2: Sit Tight on your Cash & Relax

The safest way to double your money in these times is to fold it over and put it in your pocket. Undoubtedly, cash shall be the kings of all times post lock down. Pay off your expensive debts immediately. If you are earning well , you shall be far ahead of others by cutting down your lifestyle expenses. Strictly don't invest in stock markets for sometime. Markets are deceptive and may plunge deeply. Keep calm and sit tight on your cash.

ip 3: Look for an opportunity and seize when it comes.

I should not say this but it is the truth. Due to numerous business closures and unemployment, the economy is bound to go southwards. Just look around and you may find some great opportunity in waiting. May it be a new business, business model,product line or investment opportunity. Inflation of essentials goods rises in recessions. But others things gets cheaper due to low demand. Investments in commodities which are easy to encash shall be very profitable. If you are looking for a new house , you may find lots of opportunities at good prices like never before . So is also true for stock markets and closed businesses.

ip 4: Learn from History

In the year 1930, Great Depression was the worst economic downturn in the history of the industrialized world, which lasted from 1929 to 1939. The crisis began after the stock market crash of October 1929, which sent Wall Street into panic and wiped out millions of dollars of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers. Read,read and read during lock down. Use your free time in lock down in finding out how the economies and businesses have survived during bad times . Believe me you shall be far ahead from the rest.

ip 5: Stay fit & Save on your Medical Expenses

Eat, Sleep, Repeat is certainly not good for us. Fear of possible job cuts or lower incomes may lead to depression bouts. Keeping ourselves mentally and physically fit is the need of the hour. I foresee a sharp rise in ailments. Saving money by defeating diseases is definitely a good idea. You must keep yourself medically insured. An unexpected illness may ruin your hard earned money and established business/job.

he Last Word

  • Expect stimulus from Government for banks.

  • Expect more FDR interest rate cuts by RBI

  • Expect a simplified GST compliance.

  • Visualize/Study the economic scenario of India 25 years ago. Key to success lies there !

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