This Independence Day let us work towards becoming financially self-sufficient for any scenario that we may encounter. Most of us have seen our savings dip in the last one year. This is primarily on account of the fact that mobility is limited and people want to play it safe. How do we solve this problem? There is a need of growing incomes to take care of the dip and the additional trend of fall in deposit rates which is a growing concern.
The way ahead is a challenge for most entrepreneurs and a maze to cross every day. Overnight nothing can change, however small changes when done together can create a transformation over a period of time.
What are the areas in which attention is needed?
- Business Insurance: It makes sense to look at ideas in the protection space for your office and office equipment or factory and machinery. If it is in inadequate, problems can arise in case of a worst-case scenario.
- Invest in Digital: Business is a digital game. The primary choice is to build a business online while focusing on offline as well. It could mean office automation at a basic level which ensures we don’t require people with very complex skills to do the job.
- Evaluate Business Model: It is a good practice to evaluate business models at least once a year to see whether the asset remains an asset. It is a prudent practice from a medium to long term point of view. Once in a while we will gain insight/perspective to make sure things work in the right direction as per industry trends.
- Look at high quality information: Investing in learning helps to maintain our portfolio in the right manner. It helps us to see things for what they are and take advantages of opportunities accordingly. This is important from a financial health point of view. It is similar to good food. If taken in the right proportions, it leads to good health.
- Maintain quality advisor relationships: Like the people who help you in business, quality advisor relationships help to evaluate information in the right perspective as things change often. The world we are living in is full of opportunities and that is also why things change often. In investments this results in preserving hard earned Capital and a focus on growth going forward.
- Enhance emergency funds and Insurance if needed: The Covid world is still around, and we would need emergency funds for any unwarranted situations. Also, insurance is a must for Mediclaim needs and life cover depending on the overall situation.
- Look at a mix of short term/medium term/long term investments: If you have an income gap or want to cover your personal income gaps short term investments are needed. If not then medium to long term investments are needed. This can be through a mix of Stocks, Bonds, Mutual funds, PMS and AIF.
Looking at the future with a crystal gaze is difficult in a volatile economic situation. If you are prepared, life becomes easier. Focus with confidence.
Also read: A roadmap to ease your financial worries in this crisis starting this minute
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