New Delhi: These are most challenging times for everyone, especially those who are employed in sectors that are worst hit by the pandemic. Consider the case of this mother here. Kavita Krishna, a mother of two and divorcee working in the hospitality sector, had to take a severe pay cut as a result of pandemic. The hospitality sector is among the hardest hit as people are still not venturing out in fear of the disease. Also Read: RBI Positive Pay To Add Layer Against Cheque-Related Frauds; Should You Opt For It?

In such a scenario, when the hotel occupancy rate fell drastically and employees were asked to leave, Krishna’s job was also in trouble. However, as the government decided to accommodate the doctors treating Covid-19 patients in hotels, there was some breather. Her job was saved. Krishna had to dig into to her savings while postponing her home loan under the loan moratorium scheme.

A lot of others may have struggled through similar situations and might had to stop their investments midway. Some of them also had to fall back on their investments to sail through the financial crunch. With things settling up a bit and jobs returning in the market, it’s time for everyone to evaluate their investments and alter them according to their new normal capacity of investment.

Stress on saving

It means that you have to make certain lifestyle changes to meet expenses and also continue the existing investments instead of liquidating assets. You should try to cut down expenses to such an extent that it doesn’t have a bearing in the current investments. Also, don’t stop EMI payments.

Tackling debt

Most importantly ensure that you don’t take on debt at this time and manage your finances in such a way that you are able to deal with your liabilities.

Even as some of them have moved back to home towns and opting for lower living costs or avoid debt, a lot of employees had to go for salary cut too.

Those who are already in debt will have to control expenses and save more. Such people should look at refinancing high-cost loans or closing them if possible. For this, you can liquidate your employee stock options (Esops), take money from parents, apply for loans on existing assets and find ways to reduce rent. It may appear that you are depleting your savings at the moment but in the long run it will help your net-worth.

Postpone your goals

Financial experts advice deferring or scaling down goals at this point of time. For example, if you were planning early retiring then it’s better to delay it. Other decisions can be relate dto taking a sabbatical, opting for higher studies, starting a family or starting an enterprise, and reduce marriage expenses.

Start afresh

If you had to stop your investments midway due to financial crunch, then don’t give it a pause. You can start fresh and understand the purpose of of your investment. Always make sure to build an emergency fund equal catering to 8-10 months of expenses, and buy a term plan for at least 10-12 times your annual income in case you have dependants. Next, would be to have an adequate medical cover for yourself and dependants. Lastly make sure that you borrow much as you can pay off at the earliest.