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Financial Planning during the Coronavirus Crisis

Financial Planning

The Covid-19 pandemic has impacted many industries, and the subsequent lockdown has caused much distress to people across the globe. The economies across the globe have taken a hit, and it has left uncertainty in people’s minds with respect to their finances. In this article, we will discuss financial planning amid this crisis situation.

What are the keys to better financial planning amid this crisis situation?

Adopting the following methods can help you in maintaining your finances in these times:

Financial Planning
  • Budget Reconsideration

You could have had a budget in place before the Coronavirus, but the pandemic and the subsequent lockdown might have impacted your income. You could be going through pay cuts at your work or could have been sent on unpaid leave. If this is you, then consider altering your budget. You would require tightening the budget so that your funds can meet your expenses.

  • Keep an emergency fund

Save as much as possible, especially in times such as these. These are unprecedented times and unpredictable also. Therefore keep an emergency fund and avoid expenses that are avoidable.

  • Consult Financial Experts

In case you are confused about how to do financial planning amid this crisis, then it is advised to consult a financial expert. Don’t take hasty decisions on investments but first consult an expert who will guide you in making sound financial decisions. You don’t want to fret once you have made a bad decision with your finances. Therefore be wise, and it will help you in sailing through these times.

  • Don’t delay in making payments

We all know that many of us are facing issues related to delayed income and pay cuts, but as much as possible, try to make at least the minimum debt payments by their due dates every month. If you use credit cards etc. then don’t delay in making its payment.

Delayed payments or missed payments can impact your credit score therefore, pay on time so that it doesn’t affect your score. Even if it requires you to pay the bare minimum to your creditor, repay on time. It will help you in achieving a good credit score.

  • Get help if needed

In case you are unable to repay your bills in time, then don’t shy away from getting help. Contact your creditors before missing a payment and see if they can help you out. Check with your creditors if they have any policy for affected people.

You can also take the help of credit counselors to manage your existing debts. They can provide practical and efficient debt management solutions.

  • Insurance Cover

The Covid-19 like situations are emergency situations where prior preparedness is the only way out. Do make sure that you have appropriate health and term insurance cover. Research about insurance covers that fits your need and requirements. Check its health coverage benefits and know how much it will cost you during your illness. If required, increase the premium amount by taking more coverage. It will help you with health related emergencies. Make a proper assessment and take adequate health coverage for your family.

How to do financial planning with your investments?

The following points should be considered in order to invest wisely:

  • Avoid panic

In times such as these people become vulnerable to make panic driven decisions which can cause much damage. Therefore be it a fresh investment or a liquidation, let information and clear head thinking lead you. Buy new investments in case it is in line with your financial goals.

  • Invest to a plan

When you invest, make sure that each investment is earmarked to a particular goal. Always align your existing or new investments to clear goals defined with the time left, monthly contributions required, and returns expectation. Setting a goal will help you in finding the right investment instrument, managing liquidity, etc.

  • Find the right mix of investments

Your assets like deposits, mutual funds, bonds, gold, real estate, etc. must be selected in the appropriate proportion to your life goals, return expectations, income, and liquidity needs.

  • Evaluate your current investments

The Covid-19 pandemic has taught many of us the significance of financial planning. You must check your portfolio today. Those investments that don’t align with your goals need to be reconsidered. 

  • Continue with SIPs (Systematic Investment Plans)

You should continue with your SIPs and don’t do panic withdrawal. This is because you don’t know what happens in the future. Therefore in order to remain financially stable, save your money by continuing your SIPs and long term investments. Due to the high volatility in the market, you may want to redeem your investments, but it is highly recommended that you don’t redeem your investments in a panic because of the market.

  • Digital with Gold

Gold is more preferred during any economic crisis such as these as it moves counter cyclically. However, consider investing in dematerialized gold to avoid making charges, GST, and concerns over making charges. You have options such as sovereign gold bonds, gold ETFs, gold mutual funds, and digital gold.  


With the uncertainty all around us, staying calm and taking actions to protect your health and financial well being should be the priority. It’s a time where you need to make wise decisions and cut down on your spending on non-essential things. We cannot predict when the present crisis situation normalizes; therefore, prudent financial planning can help you tide above the waves of the pandemic.

Read our article:Optimization of Capital Structure: An Important Financial Decision

Ashish M. Shaji

Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.

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