Backed by necessary financial and infrastructural push, India has become a major economy with the fastest growth. Nevertheless, large-scale emergencies or crisis like a lockdown hitting a country can have a severe impact even on the most sustainable economies as well. Like, currently India’s GDP growth rate has taken a steep dip, reaching 1.9% for the financial year 2020-21, as per a UN report.
Such a large-scale disruption trickles down to individuals, affecting the finances of a commoner. An economic slowdown is also accompanied by job losses and reduction in income, thus cutting down one’s capacity to spend. A funding shortfall can thus prompt many to resort to lending options like a personal loan. Nevertheless, individuals must take care of a few essential things to better manage their finances during such a disruption.
Ways to efficiently manage personal finances during a crisis –
- Create a budget
During times of economic instability, one’s spending capacity reduces. With limited means of income, it thus becomes necessary to run daily life on a budget. It is thus ideal to start with creating a budget so that you have a clear idea of that fund quantum allocated for every expenditure.
It is also smart to review your budget periodically and match it with expenses so that you can identify any aberrations to your financial discipline. Thus, it can help in better financial management in the long run.
- Avail low-interest financing
Further, you can fulfil the shortfall in funding requirements with financing options like lower interest personal loan. These unsecured advances are available against minimum eligibility criteria and require the least paperwork. Also, approval comes easy and quick with fast disbursal.
To know the loan amount you would require, and how efficiently you can make repayments, utilise a free personal loan calculator. This online tool is provided by lenders like Bajaj Finserv.
The NBFC also brings pre-approved offers to enable borrowers avail funds with a quick and hassle-free process. You can avail the offer on several financial products, including personal loans, business loans, credit cards, etc. All you need to do is provide your name and contact number to check your pre-approved offer.
- Restrict expenditure to only essential requirements
During such a nation-wide disruption, you do not have leverage of additional resources to cover expenditures that serve for comfort or entertainment. It is thus wise to restrict your expenses to only those requirements that are essential. Cut down expenses on non-essential items and avoid irrational spending to leave scope for increased savings that can come to rescue during emergencies.
- Keep emergency funds ready
A restricted flow of finances means a reduced efficiency to address emergencies like urgent healthcare assistance requirements. It is thus ideal to plan ahead of such emergencies and keep the necessary funds ready for disposal.
One of the effective ways to do so is resorting to a flexi personal loan, a financing facility that is both suitable for emergency fund requirements and affordable. Under this facility, borrowers can make multiple withdrawals from a loan amount that is pre-sanctioned. Also, they need to pay interest only on the amount withdrawn, thus getting the most out of flexi loans.
- Utilise digital platform for financing solutions
You can ease your financial management with digital platforms at disposal. Like, when seeking financing, you can conveniently apply for a personal loan or any other advance from the comfort of your home.
Similarly, you can resort to making payments digitally as well. Be it to service your advances or paying any other utility bills, various digital platforms are at your disposal.With these points in mind, you can efficiently manage your personal finances during a nation-wide crisis and economic slowdown. Also, when availing finances, make sure to check various ways to manage your debt efficiently, so that your borrower profile remains creditworthy.