Finance! 5 important things you have need to know for a good life
Finance! 5 important things you have need to know to make your financial condition good?
New Delhi | lucknowfirst | Business Desk. In this era of corona virus epidemic, many of us must be facing problems like job loss, salary cuts, huge hospital bills, rising health care expenses. In this era many people are struggling in the midst of cash crunch. For those who have to pay EMIs every month, their situation may get worse. Such troubles are telling us that we have to change our money related habits, so that financial insecurity can be avoided. Today we will tell you five such things, by taking care of which you can avoid falling into financial trouble.
don’t borrow too much
In this time of salary cuts and restrictions on businesses, people who have taken loans to buy properties that do not provide any income are struggling to pay their EMIs. Those who have borrowed more than their repayment capacity by making golden assumptions about their future income, have faced particular trouble during this pandemic, as their income has not grown as per their expectation, but Their expenses have increased.
Experts say that the loan should be taken on the basis of your current income, expenses and surplus. As a thumb rule, the EMI amount should not exceed 50% of your current income. Also, don’t take a loan just because it is available. If your EMIs take away too much of your income, other important financial goals, such as saving for retirement or your children’s education, may be hampered.
Cover large loans with a separate term plan
If you have a large loan such as a home loan or a large personal loan, you should have a term cover equal to the loan amount and the tenure of the loan, so that your family is not burdened in case of your untimely death. During this pandemic, it has been observed that after the death of the earner, the family members take possession of the house mortgaged in the name of the deceased, but are not covered under term insurance. Such people are again being deprived of the house, as the lender takes over the mortgaged house for recovery of the home loan.
Always keep some part of savings in liquid assets
Many wealthy people have also struggled to arrange cash to pay their medical bills during the pandemic, as most of their assets were stuck in real estate such as real estate, insurance policies and other equipment. While it is not wrong to keep money in non-cash assets, a large part of your savings should be in liquid assets, so that you can convert them into cash in a short period of time without loss of investment.
Save money for medical emergencies
Thousands of people hospitalized due to Covid in the second wave of the pandemic were handed huge bills, including the cost of PPE kits and sanitation equipment. Most health insurance companies deny these claims or partially settle medical bills after a certain amount. Due to this, the policyholders had to bear 30-40 per cent of the total medical bills and in some cases it even went up to 50 per cent.
Similarly, in many cases, those who had a cashless policy were denied cashless services and had to pay the entire bill out of pocket and later claim the amount from the insurance company. So even if you have medical insurance, it may not cover all the hospitalization expenses, so you should be prepared for it and keep an extra buffer to meet these unforeseen expenses.
The death rate in the second wave of corona virus is much higher than in the first wave and the victims are of different age groups, not limited to senior citizens only. In these situations, if the victim is the only earning member in the family and has not left a will, her family has to struggle to access her assets and insurance policies. Therefore preparing a will is as important as creating an emergency fund. Also, you should give the names of your loved ones as nominees as soon as possible.