The ongoing pandemic has brought the focus back to our health. But it’s not just your physical health that you need to look after at such a sensitive time. You also need to take certain steps to look after your financial health so that it can effectively tackle any future challenges arising out of this pandemic. So are you emergency ready amid this crisis? Do you have the emergency funds that can effectively be used anytime? Well, let’s find out how to be emergency ready amid COVID-19 crisis.
Your PF Account is Accessible
Recently, the Government relaxed norms surrounding the Provident Fund (PF) accounts. You can now claim an advance in lieu of COVID-19. However, you need to have a functioning UAN and EPF user profile to access and make a claim. If you don’t, now’s the time to visit the EPFO website and have everything set up, so you know your hard-earned PF fund will be within reach on a rainy day.
Consider Your Fixed Deposit
The money saved in your bank’s fixed deposit can come to your rescue amid this crisis. You can use this money anytime to meet your emergency needs. If your fixed deposit has a lock-in period, don’t worry as you can opt for a pre-withdrawal while bearing certain charges. This money is yours hence you can use it whenever you are in need.
Break Your Recurring Deposits
If you have an RD, which is also a famous savings instrument, it can also be used as an emergency fund. You can stop the monthly instalments of your RD anytime and use this corpus for any emergency.
Don’t Forget Your Mutual Funds and SIP Investments
Your mutual funds and SIP investments help in coping up with the emergency crisis. The money parked in this investment avenue can come handy to meet your emergency needs. You can discontinue your SIP instalments anytime and use the surplus amount to cater your emergency needs. However, you need to pay the charges like exit load to stop your SIP instalments.
Your Investment in Gold is Reliable
You can also consider your gold investments as it can also be used for rainy days. Be it physical gold or dematerialized gold, both can be used as an emergency fund. Though, the gold prices have reduced now but still, it is considered to be a good option meeting your emergency, financial needs.
Avail a Personal Loan
Availing a personal loan is also a wise decision as this loan comes handy to meet all your emergency needs. It can be availed at an attractive interest rate and minimal charges. Hence, less loan repayment burden on your shoulders.
Use Your Second Income, If Any
A sudden loss of income can throw your finances and future in jeopardy. Unfortunately, you can’t pause your monthly utility bills and other necessary/emergency expenses because of this. You will still need to pay them. This is where the second source of income will come in handy. It will help you meet these emergency expenses and tide over difficult times. An extra assignment over the weekend or a part-time job in the evenings after work are good ways to earn that extra buck.
Consider Your Other Savings Stored in Bank Accounts
If you have a sum, which you think can be used to meet your emergency needs, it is advisable to use it. Be it cash saved in your bank account or a corpus stored in other saving instrument like-Senior Citizen Savings Scheme, National Pension System, Employee Pension Scheme or Post Office Savings Scheme
So, hope after reading the blog post, you will be prepared for any emergency amid the covid-19 crisis.