Taking off from Rushina’s last update on COVID-19, today, I want to talk to you a little more about your current financial health.
The 21 day nationwide lockdown has all of us caged in our homes. Although caged would be putting it a tad negatively, wouldn’t it? For some of us, this time at home could be bliss. While for others, a nightmare. For some, it’s a mix of both. And for others, it doesn’t really make much of a difference.
Now, I’m sure you’d agree that your financial health is a big part of your overall well-being. So, let’s all spend some time during the lockdown being productive in this aspect of our lives as well.
We’ve got 3 simple exercises you can do to keep yourself financially fit, all from the comfort of your home.
Exercise 1: Sort your documents
Gather and sort all hard copies of your financial documents in a folder.
Your ID and address proofs, bank statements and other communication, Income Tax Returns. Arrange them by financial year, the latest year being on top. Keep this file/folder safe, not too safe that you’d forget where you kept it. 🙂
You could extend this to all other important documents as well, like marksheets, car and bike documents.
Doing this exercise will prove extremely useful for the long-term. You won’t ever panic when you need any document urgently, and you won’t fret over papers that can never be found.
Exercise 2: Scan these documents
Once you’ve gathered, sorted and arranged all your documents, scan them or take photos of them. Organize all these scanned files in a master folder (with sub-folders if you like) either offline on your system or on an online drive. These online documents will come in handy in the future, for example when you want to apply for a visa (hopefully the pandemic will ease up soon and we’ll all be able to make travel plans again, hands washed-fingers crossed).
Exercise 3: Make your own Balance Sheet in a spreadsheet
Yes, you heard me right. A Balance Sheet isn’t as complex as it seems. All you need to do is list out and value your assets and liabilities. Assets like a mutual fund investment, a fixed deposit, a car, a laptop, cash and bank balances. Liabilities like any loans that you are required to pay back to people or the bank. The difference between the two figures is your “net worth”.
Keep this list in a spreadsheet and jot the date down. And your Balance Sheet is done! It’s as simple as that. It’s not something only finance professionals can do. 🙂 Being able to look at your financial position at the click of a few buttons really helps you understand the true state your financial health.
Here’s a little summary of the exercises for you:
Three weeks is the perfect amount of time to get all this done. And by the end of it, you’ll automatically feel financially fitter and more in control. I’m right here if you have any questions whatsoever. Don’t hesitate to reach out. Until next time, stay home, stay safe, stay healthy.
