CONTINGENCY PLAN

 Pandemic has broken all our myths. Now how to do it and what to do is a major question.

When we talked about the contingency plan earlier, we had calculated that just health, earning loss for two years, and so on...

But two waves of Corona followed by full lockdown have shaken each and every one.

As after unlocking it took four to five months to normalize the situation.

Once everything was looking normal another wave of Corona came and everything got standstill.

The current wave with lockdown is creating more issues than we imagined earlier.

As nobody knows the treatment of the disease, the situation has been worst.

Now what to do, if a similar situation comes in the future.

As per our plan we had calculated the sum of the amount to be required for contingency.

All the lifestyle expenses including essential expenses have been taken.

As our healthcare costs with inflation have been well thought of, the cost today is nothing but loot by any standard.

Here our problem is that we don't have to earn and if we have a health issue the cost of treatment is more than n normal costs, which we used to pay.

All of these are increasing our expenses with reduced or no earning.

The only solution for the present situation is that we have to recalculate the savings and investment plan with contingency should be the lion's share of all these.

The amount should be in liquid form so that we can take it or use it as per our needs.

Different types of instruments are there from which we can choose, as per our choice.

Currently, these kinds of instruments are very expensive.

If we choose instruments that don't have lockups we have a chance to create higher investments or save some amount that can be used for other saving or investment purposes.

Finally, we have a contingency plan for healthcare, earning loss, relocating, and buying an asset.

This contingency plan takes time to set up and it is in bad shape today.

But with full lockup, once it is up, everything will be planned accordingly and our planning for contingency will be better than planned for any other occasion.

Now how long our timing is for the initial formation of these plans.

The final answer to the questions we faced earlier can't be given immediately but will be ascertained once everything is normalized and then we can assess how long we have to set up these plans.

This will take time and each one should not rush ahead and create more problems for themselves.

Our financial system is in worst condition than we thought.

The industry is not functioning.

The situation is to stay this way for 5 years to come and then after that...

What to do?

While putting all the income and investments in the right assets to take care of it.

No one can make a business plan for the next 5 years.

This can't be understood easily.

We have to go through all the different theories, financial market updates, other financial newspapers, and publications.

But as a common man, we don't understand all of it.

Until a decision is made for our financial future we can only wait for some time.

How to set up a contingency plan.

It will take time to set up all this but once the situation gets normal we can figure out the problem.

Actually, it is quite easy to set up a contingency plan, so, it is our second option.