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HAVE YOU LOST YOUR JOB BECAUSE OF THE CORONA CRISIS

Have You Lost Your Job Because of the Corona Crisis? Discover How to Invest to Get a Regular Income for Two Years

by Holistic Leave a Comment | Filed Under: Investments

Covid-19 first wave has created a substantial impact on our economy.

Many people have lost their jobs.

If you have lost your job or if you are being paid less, you can understand the painful situation better than us. There there are many others like you. You would be undergoing a lot of financial stress and emotional trauma. There would be panic, pressure, and responsibilities especially if you’re the breadwinner of your family. Did you hear of the suicides in the recent past due to the corona crisis job loss?

With the sudden loss of income, thinking of managing your living, buying necessaries, and paying off loans and insurance would be difficult.

The good news is now we have a vaccine. Also, RBI says that the impact of the second wave on economy will not be severe as last year.

But still a lot of people hardly managed to recover from the first wave economic drawback.

This article will help you invest and earn a regular income for two years.

We are glad you’re reading through to find solutions to your problem. You’ve taken the right step.

Have you heard of Oseola McCarty’s story?

This is an inspiring story of a young girl who started saving as a child, heeding to her mother’s words. She wasn’t in a great job, and so her earnings were also less. She neither had job security nor a guaranteed regular income. Regardless of all this, she did it through the tragedies, some of the worst economic crises in American history, she was able to withstand them.

Not only that she made it through all these but she also had a sum of $280,000 in her bank account during the time she retired, i.e. in 1995.

She, even as a child, was only concerned about saving for her future. The question is if she can, why can’t you? Or why won’t you?

You can read her full story here,

Now, to know how to invest, first, let’s analyze your spending habits before your job loss and after your job loss.

How did you spend your money before?

Before the COVID pandemic, you would have spent money on shopping, restaurants, entertainment, beauty parlors, movies at theatres, gym, tours, events, attractions, and other such recreational activities. You would have spent on them lavishly.

How are you spending your money now after the job loss?

After the job loss, or a reduction in income, and with the closure of almost all activities, you have stopped spending on many but there would still be some expenses that you cannot stop like your daily provisions, rents, loans, insurances, etc.

Read through this article to know how to generate regular income for 2 years and also pay off your outstanding expenses.

Also, watch the video here!

Here’s how to face the job cut and generate regular income for two years

Follow these simple and practical steps.

    1. Estimate
    2. Invest
    3. Stop worrying
    4. Get help

You will learn from the four steps, how to reduce your unwanted expenses, and how to invest for a regular income.

1. Estimate

What should you estimate?

Estimate how much money you need for expenses like essentials, loans, insurance payments, etc.

First, we will see the difference between Nice to have and the must-have expenses.

⭐ Nice to have, Must-have

What is nice to have and what is must-have?

 
“What you need and what you want aren’t the same things” – Cherise Sinclair
NICE TO HAVE
Must have are the needs and these are the essentials.

Nice to have are wants. These should be avoided as they are not essentials during this time.

Cut down these non-essential expenses, it can be subscriptions, memberships, etc. all those without which you can survive. Do this at least during this time of uncertainty.

Benefit: This will allow you to save money for other necessary items like groceries, rent, utilities, etc.

Here is a link to the Expense Planner Calculator, you can download this.

Just follow these simple steps and it will guide you to make your investments.

The first step is Estimation.

In the first sheet, we will estimate the amount required for 2 years.

To start with, first, enter your monthly expenses, automatically it will sum up the monthly expense, yearly expense, and the expense for 2 years, i.e the amount required for 2 years.
must-have expenses Here the monthly expense amounts to Rs.91,500 which leads to Rs. 10,98,000 per year and Rs.21,96,000 for 2 years respectively. Make note of the amount you require for 2 years, in this case, it is Rs. 21,96,000.

  • Insurance – Don’t forget to pay your insurance premiums.
  • Loans

“Some debts are fun when you are acquiring them, but none are fun when you set about retiring them” – Ogden Nash

If you have loans, find how much is outstanding. Try to pay off your debts, if that’s not possible, then try extending the loan tenure to lower the EMI, and in the worst case, you may use the EMI moratorium facility.

2. Invest

“Never depend on a single income, make an investment to create a second source.” – Warren Buffet

Warren Buffet stated this long time ago, but it still makes sense. It is good to make investments, so you always have a second source of income.

a. Resources

During this crisis from where will you have money to make your investments?

You can use your emergency funds, fixed deposits, and other savings.

What if you haven’t saved?

If you haven’t saved anything, you can use your PPF and EPF amounts (Here a partial withdrawal is allowed).

Links on how to withdraw PF money during the corona crisis

https://www.moneycontrol.com/news/business/personal-finance/coronavirus-lockdown-how-to-withdraw-pf-money-amid-covid-19-crisis-5085801.html

or

https://www.paisabazaar.com/saving-schemes/covid-19-know-how-much-you-can-withdraw-from-your-epf/

or

https://economictimes.indiatimes.com/wealth/invest/how-to-withdraw-from-epf-if-you-need-money-due-to-coronavirus/articleshow/75003701.cms?from=mdr

Here, Rs. 21,96,000 that we found after estimation is the amount we require for the next 2 years. Now let us find how to source this.

This step is called SOURCE OF FUNDS.

In sheet 1 of the calculator, on the right hand side, you can enter the amounts you have from your various investments.

Note: Please arrange funds to make this Remaining corpus required as zero.
source of funds

b. Where to invest

Where should you make your investments for a regular income?

Choices can be deceiving and time-consuming and hence we have listed the investment options here below for your convenience.

⭐ Liquid funds

Liquid funds invest in high-quality short term debt mutual fund instruments. It is to generate income in a very short-term with safety. As the name suggests it is highly liquid.

⭐ Bank fixed deposits (FD)

A bank FD pays a fixed rate of interest until given maturity date. It provides a higher rate of interest than a regular savings account. It gives you an assured return. This is one way of generating regular income. It helps the habit of saving and it is an appealing and secure option. For eg: You invest Rs. 6 lacs @ 5% interest for 1 year. By the end of one year, you would earn Rs. 6,30,000 (Principal and interest).

⭐ SWPs (Systematic Withdrawal Plan) in Debt funds

This is a standing instruction given to the mutual funds, to credit a fixed sum every month to your bank account. It allows you to stay invested and withdraw only periodically. There is a discipline in withdrawing.

For example: If you invest your money in a savings account, you may withdraw as and when you want and chances are high that you will overspend. But if you opt for SWP’s in liquid funds, you will be credited a fixed sum every month and hence there will be control in your spending.

These are the options where you can park your funds, do not choose an easy option but rather the right option, by analyzing its pros and cons.
Benefit: You will be able to get a regular income for two years.

c. How to invest?

Now, this step is called “Investing in funds”. It is on sheet 2, on the calculator.

The remaining corpus required here is Rs.21,96,000 for two years.

Now we will see how to invest for 1st-year income and 2nd-year income.

For 1st year income: The amount needed for the first year is Rs. 10,98,000. Now let us see how to invest this amount. In the first year, the plan is to invest Rs. 10,98,000 in liquid funds and to withdraw Rs. 91,500 via SWP.

1st year income For 2nd year income: The amount needed for the second year is Rs. 10,98,000. Let us find how to invest for the 2nd year’s income. At the beginning of the first year itself. This money is idle for the first 12 months. So we will invest this at the beginning of the first year itself in FD. As and when it matures at the year end, we can reinvest to generate income for 2nd year.There are two options for the second year.

Option 1(A) is to invest Rs.10,98,000 in fixed deposit and when it matures, the maturity amount (Rs.11,52,900) can be invested in liquid funds and withdrawn via SWP (Rs.96,075). Though the required monthly income is Rs.91,500, you can withdraw Rs.96,075.

(You can enter the rate of interest, here it is 5%)

2nd year income Option 1(B) is to withdraw only Rs.91,500 monthly from the maturity amount as SWP and later withdraw Rs.54,900 once(additional reserve).
option 1(b) The 2 nd option to generate the second year income is to invest a slightly lesser amount at a discounted rate (Rs.10,43,100), which will mature to Rs. 10,98,000. Then it can be invested in liquid funds and withdrawn via SWP (Rs. 91,500).

2nd year option2 You can download the calculator for planning income for 2 years here.

3. Stop worrying

“Worry never robs tomorrow of its sorrow, it only saps today of its joy.” – Leo F. Buscaglia

Do not worry about the tax liability or other financial goals right now. When the situation improves you can rethink about these. Focus only on things that you can control now.

4. Get help

Can you get help during these times?

Yes, it’s never wrong to get help, find a mentor, and reach out. If you need to consult a financial advisor, please go ahead, don’t hesitate.

Benefit: You will be able to get proper guidance and you wouldn’t jump into wrong conclusions.

Conclusion

Covid-19 second wave may not create impact on our economy like the first wave. But still, it can affect us. This too shall pass. Do follow the above steps and earn a regular income for two years.

Smart people would have started cutting down their unnecessary expenses and started investing. Are you also one of them? Have you started investing?

Stay home! Stay safe! Wear mask! G*et vaccinated!

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24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
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Lionel Faber
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I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
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Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
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6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
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30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews.

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