Healthcare is globally regarded as a noble profession. This is now truer than ever with healthcare workers forming a formidable vanguard in the current battle against the COVID 19 pandemic. It is thus imperative to take care of the finances of these individuals and take care of the health of the society at large The coronavirus outbreak has slaughtered every asset class globally and there has been huge wealth erosion, with the Indian market tanking over 35-40 per cent from its record high in just two months. 

With this pandemic outbreak having an impact on the global economy, the stock markets are looking uncertain and volatile. It is tough to predict the direction of the market trend in the short run. The market has triggered lower circuits but at the same time, there is a sign of recovery also seen in the market as people are beginning to realize that the death rate of the coronavirus is not as high as SARS and some of the other epidemics the world has faced in the past.

However, it’s important to remember that this is not the first time that there has been a market crash, and history has proved that we have always bounced back and emerged stronger. Life has put a halt on the monotony but, even in this challenging situation, there is a silver lining.

Here are a few steps can be taken at this moment to put your financial puzzle pieces together to break your financial monotony –

Build a financial cushion

Person Holding Coin

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Make sure that you have three-to-six months’ of your expenses saved in cash-like instruments Bank Account or Liquid Funds or FD’s which can be easily liquidated. Don’t look at returns from it, and ideally keep it our of your daily sight, for a rainy day.

Do not Panic, Stay put

Stressful times like these not only test the market but individuals too. Try not to be swayed by your emotions. Unless there is an immediate need for cash, please do not sell your assets out of panic. These are worst times to exit your investments and by doing so, you are converting your notional loss into a real loss. Time in the market is more important than timing the market. Stick to your original plan of disciplined investing, don’t speculate or act on too much information.

Plan your finances

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If you don’t already have a financial plan for your family & personal goals, then this is the right time to act. Get in touch with your financial planner and build a financial plan. Investment should be a gradual process and not be guided by specific moments Investing; it should be a part of a process over time. Each rupee that you invest must have a purpose.

A Financial Plan provides you with that process and purpose, and it also keeps your emotions at bay as there is ample clarity on what are you doing and why are you doing it.

Re-evaluate your risk tolerance

During happy times, we misjudge the amount of downside we can withstand. This is an ideal situation to reassess your risk profile. If you feel uncomfortable now then perhaps you have been taking more risk than you can handle.

Limit yourself to the Basics

Present crash, even though it is not owing to economic reasons, will bring about economic turbulence. Chances are that only fundamentally strong businesses will sail through these times. Therefore it makes sense to stick to the larger companies and better-known names in times like these.

Thank You Doctors Written with red Colored Pencil

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While doctors are mainly engaged in discharging their duties towards society, it is important that they balance this with money management for their loved ones as this is also a duty they owe their loved ones. It is also important to understand the investment avenues thoroughly and also enlist professional help before taking a final call.  In this moment of urgency, it is advisable for an investor to patiently design a strategy before diving into the market unprepared because each phase of life has an important lesson to teach. High returns while seemingly attractive are not easy to chase and even less easy to attain. This is the time to average out the return on total financial investments by focusing on financial goals and objectives.

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About the author

Ms Mashru is a CHARTERED WEALTH MANAGER (CWM ) by qualification and a Financial coach by choice. She started her career in finance and later realized her passion lies in discovering peoples financial DNA. She is a founder of PLANTRICH CONSULTANCY LLP and the Co-founder and Chief Financial coach of VAMA PLANTRICH LLP. She has also been on the panel with NDTV and has been awarded an innovator in finance by international Women Leaders Forum for 3 consecutive years. She has also been a Million dollar advisor for last 6 years. She has bagged 25 more accolades in the last 10 years. She also takes lectures for various courses on personal finance and has been a guest lecturer at business management colleges. She is frequently invited to television talk shows as well. She has been certified by George Kinder on seven stages of money maturity.