Why You Should Start Saving Right Now!

Back in March, perhaps everyone did not give much to the oncoming threat of Covid-19. Most did not know much about it, and certainly not how contagious or deadly it can be. We did not pay heed to it, which translates to the fact that companies as well as people around the nation did not save up for the impending danger.

Fast forward 4 months, the country is in a pretty bad shape. The economy is pretty shaky, and people fear for their livelihood. That is right, because many companies are taking up a wide range of cost cutting measures to curb losses. Unemployment count around the country is through the roof. 

All this means that we need to start stockpiling cash right now. We do not know when the situation will return to normal. Yes, vaccines are coming, perhaps within a few months. But that’ll still take time to reach everyone. That’s why it is important to hoard cash.

Why do you need cash in hand right now?

Unfortunately, we do not have a crystal ball to foresee the future. We do not know how the rest of 2020 and the coming 2021 will shape up. However there are a few things we do know.

1. The Covid-19 situation is getting worse in India

2. Unemployment rate is getting worse as well

3. States that are hit hard are implementing state-wide lockdowns

What does all that mean? It means that the second half of this year could easily be more financially devastating. Not to ruffle your feathers, but more people can be out of job in the second half. Such a situation can continue well into the next year.

This is why you need money in the bank right now. Even in the USA, lawmakers are debating whether to add another $600 in unemployment benefits to save millions who are out of work. That boost is set to expire soon.

If the boost is not extended, it can spell disaster for many. The situation in India is actually worse. The unemployed do not have a government-issued financial safety blanket in times of disaster. Those out of work shall have to draw from their savings to pay for expenses.

However, is that the only reason for saving up right now?

By no means!

The sudden coming of the Covid-19 has badly affected the stock market. It has recovered somewhat, but there is still a threat of a second market crash. Having cash on hand will help you.

1. Having cash on hand will enable you to leave your investments alone, thus enabling you to ride out the economic crash and saving you from permanent loss

2. It’ll help you to invest once more when situation normalizes

Back in March this year, investors who had plenty of cash on hand had adequate opportunity to load up on good stocks. If there’s a second crash coming, you want to have a fair amount of cash on hand as well. This is why it pays to load up on your bank account now. Take the funds from things you do not need, and save them up. You are saving money since you are not commuting, going out for movies. etc. Use those to fatten your bank account. 

You may not like this, but the second half of 2020 could be as rocky as the first half, perhaps even more so. It pays to have cash on hand to fall back on to make it through. In fact, if you take all the right steps, you can capitalize on some fantastic investment opportunities.