It is nearly impossible to predict the future, but up to some extent we can control the outcome by curtailing our habit of overspending and saving wisely instead.
The COVID-19 pandemic has drastically changed all of our lives. During and after the pandemic, people realized the significance of saving money. A lot of people who previously spent frivolously have now started re-considering their behaviour. People are now exploring various avenues for long-term investment schemes like buying property, applying for insurance policies, investing in gold, and so on. Here are six transformational impacts of the pandemic on savings and investments.
Resorting to Plan B
While it is essential to have a full-time job and earn a salary, one must also invest some time to upskill what they are passionate about. Every individual should have a Plan B to help safeguard themselves from any mishap in the future.
Spending Money Consciously
Spending money unnecessarily is a bad habit, and it is also difficult to get rid of it. During the pandemic, most of us learned the significance of money and the value of savings. Therefore, try to cut short unnecessary expenses and purchase only what you need. It is a healthy habit that everyone should inculcate, as this will help them in the long run.
Investment in Health Insurance
Reports suggest that the pandemic has influenced more people to begin investing in health insurance. The surge in investment after the pandemic has been remarkable. This change is considerably new in Indian society and is a welcome step.
Investment in Life Insurance
The pandemic has revealed how uncertain life can be. The plight of families without earning members is no longer concealed from anyone. Every day more people are opting for life insurance as a means to secure and protect the future of their family members.
Investment in Systematic Investment Plans (SIPs)
Investing in SIP has gained immense popularity with Indian investors in recent years, but the Covid-19 pandemic enhanced its importance considerably. When the small amount of monthly savings in the form of SIPs helped people sustain themselves in such trying times, it influenced more people to invest in SIPs.
Greater reliance on Fixed Deposits
When the Indian economy was brought to its knees, the only thing that offered some solace was the amount of money that people had tied up in Fixed deposits. Deriving money from fixed deposits was safe, easily retrievable, and helped people meet all short-term needs during difficult times.
The pandemic highlighted the significance of savings in India. It also encouraged young adults to save more.
