COVID-19: Facing a cash crunch? Here is how you can save small but earn in the long term

Coronavirus: Need to have a contingency fund and assets that can be liquidated with ease

Last updated: June 21, 2020 | 10:21

Deepthi Nair, Special to Gulf News

2 MIN READ

1/23

A majority of UAE residents have been faced with a salary cut or income loss due to COVID-19 disruption.

2/23

Keep aside cash for daily expenses and for investment as well.

3/23

Shailesh Dash, Board Member, Allied Investment Partners

4/23

Always have cash handy or in easily disposable assets to tide over a crisis.

5/23

Try to diversify your income sources as much as possible to spread the risk.

6/23

Keep track of all your spending needs, such as on school, education, house, healthcare, etc.

7/23

Proper liquidity planning will help you tide over emergency situations.

8/23

Everyone should have an emergency fund to cover 9 to 12 months of basic expenses.

9/23

Expenses on food count as an immediate or basic liquidity requirement.

10/23

Always set aside some money to deal with unexpected health scares.

11/23

You can manage most healthcare expenses with the right insurance policies.

12/23

It's critical for everyone to have medical and life insurance policies to deal with unforeseen expenses.

13/23

Have a pension plan in place that will sustain your lifestyle post retirement.

14/23

Reassess your income and expenditure during times of economic uncertainty.

15/23

If you are facing a loss of income, review all your monthly expenditure.

16/23

Diligent planning will help prevent selling your assets at a loss to tide over a sudden liquidity need.

17/23

As a family, you have to plan well in advance for gifting cash to children at later stages.

18/23

Portfolio diversification is key, both in terms of asset classes and geographies.

19/23

Investors need to allocate a certain portion of their fund to gold.

20/23

A residential property is not very easy to liquidate at short notice.

21/23

Stocks are highly liquid assets but extremely volatile as well.

22/23

Do your due diligence to find a good, trustworthy money manager.

23/23

It is important to have a good credit card history to manage your liquidity well.

Get the latest news and updates straight to your inbox