CONTINGENCY

 A few days ago an incident happened, one of our customers called to stop the SIP to pay his EMI of home loan.

Another incident was to clear  Mediclaim premium.

Last year was very painful for each and everyone due to pandemics. So such things happened, which is quite usual.

But we see the pattern one thing is commonly visible, that we have no plan and calculation for such unforeseen events.

Normally, a life full of ups and downs. We increase our burden in uptime. & in the downtime, we try to meet the obligations that were taken from time to time.

In the process majority of people changes the track. Or all together abandon the target or goal.

As said above the majority of people do not want to plan for life or even if they plan, willpower to sustain is very rare.

It is good to have an advisor who can guide you in the time of need and at the time of plenty to check.

Even if you are capable of handling all yours goals. A second opinion is always a good option.

The customer wanted us to stop his investment and also withdraw some amount from it to meet his obligations.

This is a routine practice for us in reality whenever you have a discussion with your advisor, normally the advisor wants to spare some amount for contingency. Which is not considered by many of us.

What to do, to avoid this situation, firstly you know your obligations and routine household expenses.

After this, we have to see the income pattern.

Here we have one option to save the money required for six months in one go or we can do this by choosing an option which we like. 

First do plan for six-month expenses, gradually increase it for first one year than for two years max.

A maximum of two years is the best option. Generally, if any problem needs a maximum of two to solve the problem This much amount will help to maintain the lifestyle.