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The times are testing and uncertain. Apart from health issues, financial issues too can strike without warning. With the pandemic and lockdown in place, many have lost their sources of income and are facing financial hardships. This is why building up your financial immunity is important. It will not only enable you to overcome a temporary cash crunch, but it can also help you in the long run. We present you a few ways to boost your financial immunity.
Start early
It is possibly the basic tenet of effective financial immunity. Starting early gives you many benefits. You can build a corpus slowly and steadily, whether it is for your retirement or any other life goal. You have time to experiment. You can take risks and invest. It is likely to give you good results as the long time makes up for the temporary market shifts. Also, buying life insurance early makes you eligible for lower premiums; hence it is profitable in the long run.
Start saving
You should not spend everything that you earn. Many people have a habit of spending impulsively. This can be extremely harmful as it can erode your savings and leave you financially incapable of achieving your more important and necessary life goals. You can open a savings account and commit to saving a part of your monthly income. The interest too, will keep on getting added to your savings every quarter. Start small, and you can end up with a sizeable amount a few years down the line..
Get insured
Experts stress on purchasing a robust life insurance and a health insurance plan the first opportunity you get. A health plan comes of aid when you fall ill and need to be hospitalised. It ensures that you do not have to pay for the hospital expenses out of your pocket and that you get the best care available. A life insurance plan makes sure that your dependents are cared for in your absence and do not have to suffer the burden of your unfulfilled debts and liabilities.
Invest
It is always beneficial to make your money work for you. Instead of just depositing your money in an FD, invest it in the stock market, bonds or securities for it to grow. These instruments help you keep your wealth safe in addition to helping it increase. If you are comfortable taking risks, you stand the chance of earning more returns by investing in equity funds. They help you earn but also carry higher risks. Government securities bonds and papers typically carry lesser risks and are for the more conservative investor. Make a portfolio consisting of a healthy balance of these instruments to generate wealth. You can also reach out to financial managers for more insight into this.
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