The economic fallout has caused a seismic shift in the attitude towards savings & investments. Job losses, salary cuts, and shutdowns in businesses have flipped lives for many, the impacts of which are devastating for those whose finances were already in delicate shape. The income uncertainties, the fear of contracting the infection, and also the thought of being burdened under a mountain of medical expenses have stimulated people to restructure their financial goals.
Covid-19 has insulated rich Indians to become more future-focused when rescheduling their priorities. The report says, nearly 53% of affluent Indians have set the goal to improve their health and 46% want to be financially prepared for major life changes like having a baby or moving abroad. The 47% have set a goal to line aside extra money for their children’s future. Building an emergency fund for rainy days was never a priority; the handsome pay ensured thoughts of unforeseen situations failed to cross their mind. But before they could start paying the set EMIs, businesses were forced to shut down thanks to the lockdown mounting losses.
More than 90% affluent restructuring & Financial Planning post-pandemic!
The Financial experts at MyFinopedia state that to meet the new goals, the affluent need new strategies to grow their wealth, which frequently involves more proactive investment instead of just saving cash.
According to the report post-survey, a large number of affluent Indians are on the verge of the danger of facing monetary shortfall post-retirement. A late start to retirement planning, combined with the pandemic-induced confidence gap, leaves a big proportion of affluent families in danger. The survey also found that 43% of ‘working respondents’ are yet to begin saving for retirement. 50% of the emerging affluent who participated in the survey said they’re now less confident about achieving their life goals. The proportion was lower at 38% for galvanized net worth individuals despite having taken some action associated with it within the last year. Professional assistance can help these families address the lost power of confidence for continuing to be affluent. And here, the MyFinopedia family starts playing an active role in their lives.
Given that the economy will take time to regain its pre-pandemic health, the primary step towards resetting the finances should be maintaining a decent leash on the expenses. Irrespective of whether the income remains unchanged and has been partially impacted or completely dwindled, one has got to force oneself to travel on a good budget and keep expenses at a minimum. That increases the search opportunity for brand new income streams for extended periods of limited time. If one would like to tap into the investments, fixed income instruments are preferable as these minimize the chance you’d be exposed to must play together with one’s equity investments.