Jet Airways: When things are fine, we develop their confirmation bias. We feel Nothing can go wrong. But this COVID-19 crisis has made us learn the biggest lesson of our life that some forces are beyond our control and we need to be prepared. The extending arms of coronavirus are eating the economy of our country. Stringent lockdowns have hampered the sources of income for all the sectors of the economy and among them, sectors like aviation and hospitality are in severe pain.
In some terms, this situation is as traumatic as it was for those affected, for the roughly 22,000 employees of the erstwhile Jet Airways that folded in April 2019. Most of them were young and ambitious professionals earning well and leading comfortable lives. But everything turned around overnight. What made matters worse was that most of them didn’t have a financial plan.
Mrin Agarwal, Founder, Finsafe India has an important observation: “You need to stop thinking that this (job loss) won’t happen to you. I don’t think anybody is indispensable. Youngsters need to be prepared for the worse, at least financially.”
Some of the look sorts include:-
Saving for Emergencies
We should always be prepared for any sort of extremity and an emergency corpus will help. Emergency corpus helps to financially manage contingencies. Jet Airways Additionally, it can also help to safely learn mutual fund investments, save on tax, increase returns on the portfolio, facilitate career move, fast track financial planning, and to teach saving habits.
Your emergency corpus should consist of your regular monthly expenses: groceries and daily eating expenses, any equated monthly installments (EMI) on loans you still service, any other possible major expenses that could come up. Keep room for some entertainment expenses as well; you don’t want to feel bad during this time that because of a job loss you couldn’t do the things you otherwise did,” says Lovaii Navlakhi, a financial planner.
Keep a check on your expenses
Keeping your expenses in check is another advice most financial planners give. According to a February 2018 report prepared by Deloitte, the Indian millennial spends 29 percent of his/her salary on monthly necessities, 12.4 percent on grooming, 10.7 percent on discretionary and lifestyle expenses. He/she saves just 11.2 per cent. From their incremental income, millennials would first spend on entertainment and eating out (32.7 percent), apparel and accessories (21.4 percent), mobile, and computer (11.2 percent) before carving out for their savings (10.5 percent).
A bit of planning can help you in your hard times. As in bad times, even a lot of work experience may not help.