Given that tensions are rising, it is very important to keep track of your personal finances. Just like an emergency bag is crucial, so is making sure that your finances are in order and can be accessed easily in case the situation arises. Of course, with that, several chartered accountants (CAs) and other influencers and finance experts are coming forward to provide advice on what a common person can do with their money.
What Are CAs Saying?
Harsh Goela from Goela School of Finance in an Instagram video has listed “8 simple steps to protect your finances during uncertain times.” One of the first things he talked about was the importance of keeping cash, hard cash of at least 2–3 months in hand, as online transactions cannot be trusted during times of crisis.
He also added that one should “save at least 3–6 months of your monthly expenses. Split it between your bank account, a liquid mutual fund, and some cash at home – in case ATMs or UPI stop working.”
Yogita Dand, Certified Financial Planner, has also stressed keeping a sizeable emergency fund “ideally covering 6–12 months of essential expenses – to cushion against unexpected disruptions in income or market volatility.”
Goela also suggested that one should move away from risky stocks and instead shift to safer areas like “gold, fixed deposits, or mutual funds.” He also advised investing in international securities, as India might see a big impact in short-term investments.
Goela and Adhil Shetty, CEO of Bankbazaar.com, have also advised checking your insurance policy and health coverage plans to make sure that they cover war-like situations.
Read More: Watch: Five Things You Should Know Before Investing As A Noob Investor
Shetty said, “Ensure you have adequate health and life coverage and check if your policies cover riots, terrorism, acts of war, etc. Most policies don’t, but some may. A careful reading of your exclusions is important.” While Goel said, “Make sure your health and life insurance are active. Check if your nominee is correct on every policy,” and also see if your plan covers war-like situations.
Harsh Goel further added that you should “Go through all your bank accounts, mutual funds, and FDs. Make sure the right person is listed as the nominee – it makes things easier for your family later.”
Finfluencer Isha Jaiswal, better known as CA Isha Jaiswal, also talked about how a war could impact our finances in a video. She mentions that “the government can impose a 5% extra tax as war cess on your income, which it did during the Kargil War.”
She also talked about FDs being safer as they are “backed by the RBI,” but to still be cautious, as banks can limit withdrawals. Jaiswal does advise that for the stock market, “there is a general trend during these war-like situations that gold increases on average by 21% and the stock market falls by around 8%. So you can invest more in gold, defensive, FMCG, or pharma stocks as they can be safer investments during these scenarios.”
Amit Suri, founder of Aum Wealth, as per a Fortune India report, also stressed that it’s important to stay calm and not take steps in panic or haste. He said, “In times of geopolitical tension like the India-Pak conflict, stay calm and stick to your financial plan. Don’t let short-term noise derail long-term goals.”
As per Yogita Dand, you should “monitor your monthly budget and limit discretionary spending while keeping an eye on debt obligations. In such times, financial discipline is your strongest defence.”
Image Credits: Google Images
Sources: Fortune India, Instagram, Forbes
Find the blogger: @chirali_08
This post is tagged under: Personal Finance, finance, investment, war, war like situation, India-Pakistan conflict, India Pakistan crisis, money, emergency fund, budget, personal budget, gold, fixed deposits, mutual funds, insurance
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