Importance of Financial Planning During Covid19


The novel Coronavirus pandemic has had an overwhelming effect on people’s personal finances across the globe. During this time of uncertainty and insecurity, the best way to tackle the uncertainsituation and make sure a thriving financial future is to re-evaluate your present finances and plan properly. 

This is the time to have a look at your financial planning with a fresh set of eyes and re-assess what you can do in each aspect of financial planning. Given the scale of the economic impact of the pandemic, the steps you take now could well decide your financial future. 

Re-assess your income stance:


We have noticed an extraordinary number of layoffs, salary cuts and job loss because of the impact of COVID-19. There’re not many people who’re not affected by this crisis. As organizations cut their funds & revenue projections, even those that are still in jobs would be interested to re-assess their short-term & long-term income outlooks and business opportunities. 

How protected are you from a possible loss or fall in earning? Over the long-run, are there probable post COVID-19 changes to your professional that could put your earning in danger? If yes, what steps can you take and what markets can you explore to reduce the risk to your earning? 

Re-think about your emergency fund?

It’s always advisable that you must have an emergency find in order to get protection against medical emergencies, economic disasters, and other unexpected situations. For the majority of people, that is 3-6 months of expenses in a liquid fund that can be accessed easily. Considering the importance of the length of the pandemic, it makes wisdom to amplify the size of your emergency fund according to your personal earning outlook. 

Make a list of how you can cut down on expenses?
 You can simply get started by making a list of all the non-essential expenses & categorize them in order of importance, then eliminate the expenditures those are least significant for a few months.

Update your projections & scenario planning:


This is the time to get in touch with your financial planner and ask them to update your long-term cash flow projections to find out if you’re on track to accomplish your financial objectives provided that we have witnessed a massive a downfall in the stock & bond markets. Because of COVID-19, a lot of people now have diverse long-term anticipations on earning & savings levels, at least for a few months. Therefore, it is wise to comprehend what the updated essential monthly savings amount and expense levels are to accomplish your financial goals. 

Can do you still pay for your kid’s college education without compromising a comfortable retirement? What amount of monthly savings can let you retire early? Your financial advisor is the best person to update your projections & determine the possibility of success for queries like these.

So, don’t be too late! Get in touch with Sunil Chugh Financial Planner in Mississauga and see how he can guide you through this tough time.

Disclaimer: The information in this commentary is for informational purposes only and not meant to be personalized investment advice. Please contact your investment professional for investment advice and before investing in any product. ACPI does not publish market research and Sunil Chugh is not registered as a research analyst. The content is from sources believed to be accurate and the opinions expressed are those of the author and do not necessarily represent those of ACPI

Source form: https://sunilchugh.wordpress.com/2020/07/02/importance-of-financial-planning-during-covid19/
 
Location: Mississauga, ON, Canada

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