The economic crisis owing to the COVID-19 pandemic has disrupted the livelihoods of many. Anxiety is at an all-time high, given several layoffs, salary cuts, loss of investments, reduced ROIs, and more. Due to COVID-19, India’s already slowing economy is experiencing a further decline as economic activity was halted to contain the spread of the coronavirus. This is why essential measures must be taken by the employers and employees – in service as well as business sectors – to mitigate the impact of the coronavirus lockdown.
Here are a few tips to assist you in overcoming and countering the negative impact of the coronavirus led financial slowdown.
For Salaried Individuals
During these tough times, terms like layoff, job loss, and pay cut have gained currency, as employers are cutting back their workforce to reduce the impact of the economic slowdown. Consequently, salaried individuals have raised concern over employment uncertainty and pay reduction as meeting the financial needs is becoming difficult.
To nullify the negative impact of COVID-19 pandemic, salaried individuals should revise their personal finance – curb discretionary spending, avoid panic purchasing, liquidate unprofitable assets, build an emergency fund, etc. Alternatively, you can also apply for a personal loan to counter the cash crunch.
For Self-Employed Individuals
In India, around 50% of the workforce is self-employed and has been experiencing a reduction in their economic activity. Moreover, due to coronavirus, India has further noted a 32% decline in the work available to the self-employed individuals. If this persists, an entire section of people would face a severe financial crunch.
To avoid this, two steps are essential – financial reorganization and network building. Re-financing to save money for an emergency fund will ensure sound financial health as income uncertainty is prominent in self-employment. You can also leverage national aid via the relief packages to meet your monthly obligations. Moreover, building a professional network will ensure that you get ample work opportunities to sail through the coronavirus lockdown with ease.
As a consequence of the coronavirus, India has witnessed a steady decline in the growth of several business sectors. Furthermore, the coronavirus lockdown slump has scaled-down the operations, lowered ROIs, disrupted supply and demand, led to temporary shutdowns, etc. for various companies.
Nevertheless, organizations can get back on track by availing the government stimulus packages and by keeping a record of other such interventions. Reviewing the business plan is also crucial to managing economic downfalls if companies want to revive their revenue growth. Besides, adopting a business model that incorporates long term policies can prove beneficial in the face of unprecedented economic challenges.
Additional Read – Benefits of using a Business Loan after Lockdown ends
The Bottom Line
After the coronavirus lockdown, solutions to revive the economy will focus on quenching the investment droughts, expanding domestic production capacity, encouraging cash flow in the market, and much more. But, in the meanwhile, if you are unable to procure funds, you can either dig into a part of your savings or take a loan to assist in overcoming the economic slump.