Here Is A List Of Financial Survival Tools That Will Guide You Through The Hard Times

The COVID-19 pandemic has challenged the definition of the word ‘normal.’ The economic and social disruption it has caused has been felt by mankind globally, whether it is a dramatic loss of human life, a devastation to public health or an existential threat to the world of work.

The last 15 months have challenged all of us in multiple ways, requiring communities, businesses, governments and the society at large to step up. It has made us cognizant of the fact that life is a constant readjustment to our surroundings.

Hence, it is imperative to have some amount of financial preparation which can capacitate us to sail through the toughest of time. This will serve as a shock absorber, thereby empowering us to get on our feet independently. Having no knowledge about finances may create a treacherous situation.

Glover adds that it’s important to remember that Cash is King. “Don’t be in a rush to spend or invest it until you have a full grasp on your new financial situation.”

So, it is pertinent to have knowledge of every piece of financial information. Here are some suggestive ways enlisted below:

1. Get your legal documents in order- It is advisable to have nominee/s in as many assets as possible. Take out some time to get a firm grip of the financial details of all available assets, debts (liabilities) etc. That means gathering bank statements, mortgage statements, investment accounts, retirement accounts, loan documents, tax returns, property documents, insurance details and the like and maintaining them in an organized manner.
2. Financial advisor – Connecting with a knowledgeable, experienced professional on all such matter can give us a sense of strength and readiness. Have a candid discussion with the financial advisor about the income, needs and expectation of returns and goals. This would enable him to chalk out a comprehensive financial plan which can meet your short term as well as long term requirements. He can provide insight into how to create more wealth, reduce costs and eliminate debts if any. He can also ensure alignment of your investment with your financial goals by regularly monitoring and reassessing your investments.
3. Building an emergency fund- Establish an emergency fund up-to at least six months’ worth of living expenses. Make sure, some funds are parked in liquid form and are easily accessible.
4. An index of documents- The process of putting together and creating an index of all the financial documents including savings, investments, and other key assets, debts along with its location is indispensable. A good financial planner will keep you on schedule with listing and updating this information.

Knowing early on where we stand and what are the options available, can help us enormously in maintaining normalcy in our cash flow and in overcoming all sorts of financial intricacies.

Let’s make the rest of our life, the best of our life 

Image source: An image from Pexels

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CA Jyoti Agrawal

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