The coronavirus pandemic has resulted in massive job losses and pay cuts for many as companies and industries grapple with the economic slowdown that has followed. Across the globe, economies are seeing one of their worst periods with the International Monetary Fund predicting that the Indian economy may contract by 4.5% in 2020, while the global growth is expected to slow to 4.9% in 2020
At a time, such as this, having savings and managing money smartly becomes imperative. Here are some do’s and don'ts of managing money during a crisis according to credit card payment platform CRED.
Sitting at home due to the lockdown can increase our chances of exploiting our savings by falling for fancy schemes, discount offers, loan offers, credit card offers, and so on. Your credit card comes with multiple rewards, however, evaluate the rewards at your disposal and choose the ones that will benefit you the most. This way you get the best of both worlds - rewards for the saving while keeping your actual savings intact.
When the social distancing blues pay a visit, you may feel better by going on a spending spree. However, it is not the wisest move during a crisis situation. Without giving into temptation, maintain a grip and track your expenses now so you can enjoy and indulge as you wish once the situation clears up.
With digital payments coming to the fore, phishing and bank frauds have become a very common occurrence. Make sure you DO NOT SHARE your ATM pin, OTP, card login credentials, CVV, and other sensitive details with anyone, even if the person claims to be from your bank.
Rising markets are high risk stocks and starting out with high risk investment can prove to be fatal in case of an error in judgement. Diversifying your investments can prove beneficial here.
It is always prudent to keep a track of your expenses, and all the more so during the time of a crisis. You can move your heavy fixed expenses such as home rent to your credit card and set aside ready money for any emergency that may arise.