Important Financial Management Tips during the Time of the Pandemic

With the COVID-19 pandemic affecting the world alike, no industry is an exception to the wrath of the pandemic. As a result, numerous businesses  online time and attendance software have started shutting down due to the pandemic. It would be in your best interest to look forward to securing your finances during the pandemic, as markets have started to fluctuate while wiping the wealth of the investor largely. If you were concerned about your finances due to the COVID-19 pandemic, you should emphasize on saving and reducing your expenditure.

Understanding the role of finance to ensure effective strategic ...

Let us delve on a few vital financial management tips during the lockdown. Rest assured these tips would help improve your financial health during the time of the pandemic.

Emergency funds

With the emergency being unpredictable and relatively difficult to manage, it would be in your best interest to look forward to keeping some funds for managing the emergency. You should consider saving as much as possible. A good option would be to maintain a budget. Avoid making expenses where you can do without.

Insurance cover

Such a situation could occur anytime. Therefore, it would be in your best interest to have a proper health or term insurance. Consider going through the health cover benefits. Determine how much it would cost during any critical illness. If need be, take more coverage and increase the premium amount. The insurance cover would help you during a health emergency. Have an honest assessment for taking proper health coverage for you and your family.

Finance Definition

Checking your Installments or EMI

Non-payment of the EMI installment would reflect on your credit score report. It would be pertinent to opt for banks EMI moratorium or you have to pay the dues within the stipulated time. Rest assured that a good credit score would assist you in acquiring a loan in the future when needed. You should not ignore your CIBIL score.

Continuing with SIPs

You should not panic for SIP withdrawal at the time of the pandemic. Rest assured that SIPs and long-term investments would keep you financially strong. It would keep your money safe. Therefore, rather than redeeming your investments considering the volatility in the market, long-term investments would help you create a bigger corpus when the market resumes.

Do not go panic shopping

Avoid spending your money on purchasing groceries, food items, medicines, for stocking up things due to your fear of COVID-19 lockdown. Consider purchasing daily use items and the ones deemed imperative part of daily use. When you panic, you put a strain on your finances.

                          1. Vital Steps for Businesses to Stay Connected and Survive the Lockdown

The COVID-19 pandemic has influenced the finance market largely. Several businesses have been on the verge of closure, whereas, several have been closed due to the pandemic. While understanding the gravity of the situation, you should turn it to your favor, as the business would matter to your sailing smoothly in the difficult times.

Unfortunately, the pandemic has a huge effect on startups and small businesses. It has been brutal on companies and businesses having fewer cash reserves. They have a smaller margin for managing unexpected crashes. The pandemic shutdown has a huge effect on the economy of the nation. All businesses and industries are affected due to low revenue generation. It has resulted in an eventual halt on the sale of services and products. Therefore, it has become imperative for startup businesses to adapt to a new set of rules to survive the lockdown caused due to COVID-19 pandemic.

Find below a few vital tips for staying connected and surviving the lockdown.

Tip #1: Transparent communication with the customers

Transparent communication with your customers about how the business is going would be the best way. Your customers would empathize with you dealing with the crisis due to transparent communication. It would also help you understand their perspective of the customers for offering the solution.

Tip #2: Managing your employees

Management of your employees during the lockdown would imply cutting down the salaries of higher-paid employees and executives. It would help you retain the employees who could not afford to lose their jobs. However, be compassionate while taking the call. Offer more compensation to the relieved employees and adhere to the directives of the government. It should, in no manner hamper, the morale of the employee.

Tip #3: Maintain cordial relations

To avoid bitterness between you and the contracted parties, it would be in your best interest to inform them about any delay in payments resulting due to COVID-19 pandemic effect. All are equally affected by the pandemic. Prior information is given to the property owner; supplier, vendor, etc would help them prepare beforehand for the situation.

Tip #4: Keep the team spirit high

Keeping your team engaged through video conferencing would keep their spirits high. They rely on you to keep them connected and engaged. It would help you understand the mood of your workforce.

Tip #5: communicate with stakeholders

Plan the best mode of communicating with your stakeholders, employees, and customers. Your honest communication with them about the impact of COVID-19 lockdown on your business would help you both understand each other in the best possible way.

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