How To Manage Your Expenses During Lockdown Without Stopping Your EMI Repayment?

Tactics To Help You Manage Your Expenses, Including EMIs During Lockdown 

Maintain Emergency Fund

The ongoing crisis has shown the importance of saving for a rainy day. It is therefore prudent to maintain an emergency fund to ensure you have some form of liquid cash to manage uncertain situations. You should start by regularly setting aside some amount as savings. This will not only help you to collect some lumpsum money but also manage the financial constraints during an emergency like EMI repayments, medical expenses, utility bills, etc.

Adequate Insurance

Ensure that you have adequate health insurance and term insurance cover to meet any unforeseen crisis like lockdown. Keep a check on your health insurance coverage during any illness. If required, opt for increasing the premium amount to increase the coverage as this may help you in case of any hospitalisation or medical emergencies.

Consolidate Debt

Another practical way to manage debts and lower your expenses would be to consolidate your multiple debts into a single loan. If you have maintained a good credit score, then lenders may even give you the benefit of a lower interest rate or longer tenure for such a consolidated loan, lowering your EMIs over the tenure of such a debt consolidated loan.

Go for EMI Moratorium

If you have an ongoing loan and it qualifies for an EMI holiday, then consider going for it. This will give you more time to manage your financial constraints and defer EMI payments without any penalty being charged. Personal loan moratorium period explained simply means a temporary break from EMIs to help borrowers during tough times.

Revisit your exiting Investment Portfolio

If you have invested in stocks, mutual funds, etc. then have a look at their existing value. When such investments are not performing well, then it is advisable to sell them and invest in good funds for a long-term benefit. If you have good investments, keep investing in them through the SIP route, because you can get more units in the future.

Curtail Non-essential Buying

Restrict your spending on non-essential items during the lockdown. This will help you to curtail your expenses, increase savings to spend on essential items like food, medicines, etc.

The uncertainty brought by Covid-19 induced lockdown that led to financial constraints for many. By making certain changes in financial habits as seen above, one can manage to tide over such uncertainty with success.