The rapidly spreading COVID-19 pandemic has pushed people to the point where they must make the best financial option possible at the time. Regardless, it’s possible that individuals have been doing it incorrectly up until now.
So far, countries all over the world have witnessed panic buying, or the purchase of an excessive amount of medical products, hygiene, food supplies, and so on.
Even if it seems like a ‘rational’ reaction, it is actually not. Apart from showing shallow financial decisions, it also does more harm than good, especially to the society, medical industries, and for themselves.
Accordingly, the financial decisions that should be made during the COVID-19 pandemic mostly contradict what people have already done. That said, it is better to be late than never. To know what decisions you should make, here are several tips you can possibly follow.
Save More Than Usual
Contrasting to the panic buying which costs a lot of fortune, financial experts suggest that people better save more than usual. That said, they should eliminate the unnecessary expenses to bolster up their savings.
Accordingly, the coronavirus outbreak is a highly unpredictable moment in which things might go wrong at any time. Therefore, it is always better to allocate more money to your emergency funds.
Buy and Store Some Things, Not Every Thing
In relation to allocating your funds to savings more, the same goes to making a purchase. Additionally, people should make a purchase and store several stuffs that they can store based on their needs, not based on how many items they can afford.
For instance, considering the fact that people have to spend most of their time at home, they can store groceries and cook everyday to minimize expenses. Also, it really is different with people who massively buy toilet papers with no specific reasons because it does not serve any purposes.
Keep Your Investment the Way It is
As the market is highly volatile, it definitely is not the right time to sell your securities. People tend to panic and act according to their fear of gaining no benefits from the investment they have.
In addition, people also make some mistakes such as overbuying securities that are currently rising due to the heightening demands. However, what they do not estimate is, perhaps, when everything is over, the value will also significantly decrease.
Writer: Doddy D. Wahyuwono
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