The health contingency caused by COVID-19 has caused a very bad impact both for the Pakistan economy and for the rest of the world since economic growth is measured through the Gross Domestic Product (GDP).
This being the value of the goods and services produced in a country’s economy.
Due to this, the Pakistani economy could grow at a slower pace due to the coronavirus pandemic, a situation that had not occurred since 2009, according to information from the Economic Organization Department of Pakistan
Therefore, to avoid that the economic recession affects you as little as possible, it is very important to know what to do with your money when a health contingency occurs.
What to do with your money during the COVID-19 Session?
- Do not add any more investments in your business
- Increase emergency savings (Extra Money)
- Don’t stop paying money for your pensions
- Avoid extra shopping
- Be supportive of others during the crisis
Do not add any more investments in your business
In Pakistan, there is an economic recession caused by the COVID-19, mainly reflected in the collapse of oil prices, the fall in economic activity, and the rise in the price of the USD to PKR, according to data from the State bank of Pakistan
Therefore, not making any kind of movement in your investments in a period of 3 to 6 months is one of the best ways to protect your money against a health contingency.
Likewise, it is essential that any movement in the stock exchange or acquisition of new investment is aligned with your personal goals.
It is recommended to keep the money in safer places (not banks), or in a savings account in a trusted banking institution, in this way you will be better managing your personal finances.
Increase emergency savings (Extra Money)
In this situation, one of the best ways to invest your money is by increasing your emergency savings. Especially if an economic recession occurs, you will need to protect your family assets.
Start by making a list of all the nonessential expenses around the home like paying for memberships and subscriptions, and rank them in order of importance. This will serve to eliminate those non-essential expenses during the health contingency, for example, avoid the monthly fee for the Exercises (gym) or dance or music classes for your children.
In case you do not have so much savings and your salary is affected by the COVID-19, it is best to access a line of credit. Remember that it is very important to save money in times of crisis.
Don’t stop paying money for your pension
If you are a good worker and your job is insured by any insurance company during and after the health contingency, under no circumstances should you stop paying money for your pension?
Financial specialists consider that making voluntary contributions to the Housing Subaccount or the Afore is a safe way to invest your money during the pandemic.
Avoid extra shopping
The good thing you can do with your money in the face of the health contingency due to the COVID-19 is to avoid extra purchases and make ant expenses. It is time to protect your economy of Pakistan , especially if you have to pay a mortgage loan and credit card bills . Consider that the recession will hit your pockets if you don’t start saving.
Be supportive during the crisis
The best time to be supportive is during this resession , so if you have reserve money, consider supporting an company for older adults or children on the streets. Also, do your shopping in your local stores and markets in your city.
Finally, maintaining the preventive recommendations to avoid resession by COVID-19 will help to protect your investment.