Personal Finance News

COVID 19 & Wealth Creation – Top 4 2020 lessons to take forward in 2021

The brutal and the most memorable of all memories, COVID 19 was literally a lesson learnt for the whole world.

As said, the pandemic taught many things, now going forward in 2021 will be a year of thorough manifested decisions.

As it has changed our mindsets, it has made a major change in the way we look at our finances.

Though the first thing, apart from human deaths was death of jobs and personal finances, still, COVID 19 opened up many other options.

Here are the four biggest lessons that we learnt and need to implement in 2021-

We really need Insurance as our lifetime partner

There is a majority of population, especially in the developing countries like India, where most of the people don’t invest in insurance.

There were many cases people thought would cost just few rupees but eventually ran into lakhs. This was the straightforward answer why do we need insurance.

Going forward, there will be a huge amount of population investing in insurance, it is predicted.

Carefully invest in discretionary expense

There are lots of people who used to spend a lot on plenty of things which aren’t later utilized by themselves irrespective of the cost.

COVID 19 has been a big lesson on how important it is to save money. Lots of people have learnt this lesson of not buying unnecessary things and investing in goods they really need.

Always keep a backup plan

Among many, there are few optimistic people who always keep their backup plans.

These multitasking, long-term oriented people were often not considered by the general investors, but, are the ones who had little relief in this pandemic.

It is advisable now, to keep finances from at least 6 to 8 months handy, to overcome such long-term income losses.

Exiting Equity Investments regarding short term volatility should be avoided

Post March, when world officially entered the pandemic season, many investors started panicking.

This notional fluctuation in the market resulted in even higher returns for those investors who were patient enough.

Investors have gained significant ROI by 80% who didn’t exit the market compared to those who couldn’t remain courageous.

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