Border Tensions At A High Post Operation Sindoor, Here's How You Can Keep Your Finances Steady During A Crisis 

Things can feel a bit uncertain when geopolitical tensions arise. Markets react and people worry about what might happen next. In times like this, taking a pause to check your finances is crucial. Remain calm and don’t make big changes. Just ensure your money is where it needs to be, in case things shift quickly. Here is a quick and simple guide to help you do that.

Keep emergency money handy

Set aside enough money to cover 6 to 12 months of basic expenses. This includes essentials like rent, groceries, medicines, and utility bills. The money should be easily accessible in need–like a savings account, fixed deposit with a sweep-in facility, or a liquid mutual fund. Avoid putting new money into long-term savings options like PPF or NPS during an emergency. Instead, focus on having money that is available when you need it.

Put off new loans  

Avoid borrowing at this time, unless necessary. Credit card debt and personal loans can be expensive and destabilise your finances during uncertain times. If you need money urgently, consider lower-cost options like a loan against FD or a gold loan.  

Focus on essentials

Review your monthly expenses and focus only on what’s necessary–food, rent, medicines, and important bills. Cut back or avoid non-essential expenses like shopping, travel, or extra subscriptions. Even small savings can make a difference over a few months.

Diversify your investments

Don’t put all your money in one place. During uncertain times, stocks may fall while gold usually holds steady. Have a mix of investments spread across equity, debt, and gold.

Also Read : How Keeping Track Of Your Home Loan Helps

Review your insurance cover

If you anticipate a crisis, check your insurance. Make sure you have a health cover in place. Rs 5 to Rs 10 lakh is usually enough for a family. If you’re the main income earner for your family, get a basic term life policy as it is low-cost and offers high cover. Do check your policy terms to see what it covers. Also, avoid insurance products that mix investment and protection–they are expensive and not very helpful in an emergency.  

Remain invested  

If your basic expenses are covered and your income is stable, you can continue small investments. If it is manageable, don’t stop your SIPs. Avoid risky investments–instead consider safer options like debt or balanced funds.  

Organise and update your financial records and documents  

Financial records like account information, insurance details, investment and loan documents, tax records, important nominations, papers, will or estate documents, and emergency contacts should be updated and organised. Make sure your family members know where to access these records and documents, if the need arises.  
 
Financial preparedness can reduce stress during a crisis. Keep things simple and focus on what matters to get through uncertain times.  

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