There is a possibility of war-like situation arising amid tensions between India and Pakistan. In such a situation, your financial stability can also be in danger if inflation increases. Amidst challenges like fluctuations in the stock market, rising inflation, impact on job or business income, you can strengthen your finances by adopting these 6 things. 1. Give priority to emergency fund
In times of stress, definitely create an emergency fund covering the necessary expenses of 6 to 12 months. In this, calculate the necessary expenses of the house for a month (rent, electricity, gas, ration, school fees) and deposit savings of at least 6 months. How to do it? Deposit a part of the monthly savings directly in the savings account or FD. In times of inflation, this fund will reduce the pressure on your pocket. 2. Check war or riot cover in insurance policy
Check your health and life insurance policy to see if they cover situations like ‘war, terrorism or riot’ or not. This is not included in most policies, but it can be an add-on in some special plans. Along with this, give information to the family about all your investments and insurance. So that they can use it in any emergency. 3. Stock up on essential items
Do not panic when stress increases. To avoid inflation, you can choose the option of smart shopping. Gradually increase the stock of pulses, rice, flour, oil, detergent, and medicines. Buy big packets (5kg rice) – this can save up to 10-15%. 4. Create a gold and diversified portfolio
Keep your investments diversified in stressful situations. Gold can be a better investment option for this. Invest in digital gold or gold ETF. Along with this, do not stop investing in panic due to market fluctuations. Continue SIP, it reduces volatility. Historical data shows that markets recover again after some time. 5. Save first, then spend
The golden rule is that as soon as you get your salary, first set aside the savings or investment amount. Then spend the remaining amount. Spending first and investing the remaining money is not a good strategy. Make sure to invest 20% of your salary. 6. Most importantly, do not panic in any situation
Avoid ‘fake news’ on social media, get updates from government websites (PIB, RBI) and reliable sources. Do not invest money on rumors in the stock market, take decisions by following the advice of experts. Preparation is your biggest strength in case of tension on the border. Small steps will not only save you from inflation, but will also provide financial security for the future.
