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Tips to Financially prepare for a second lockdown

Covid-19 has been a thorn in the flesh for quite some time now. Though there is a vaccine being administered globally, the new variant is still a headache. Some states are even experiencing a second wave while others are on their third wave. The numbers are surging as hospitals are getting overwhelmed every day.

States have embarked on lockdowns to deal with the spread since the new variant is more infectious. The second wave is already here in India, and Prime Minister Modi announced it on March 17th, 2021. The report shows over 23,000 cases in Maharashtra and 4,745 new cases in Pune. As we are writing this article, Maharashtra is under lockdown, and this is day 4. This begs the question is India going under total lockdown again.

We are still uncertain about the full lockdown, considering the viral surge in numbers. But it’s better to be prepared. Youneed to prepare financially in case of a full lockdown. Below are tips on how to prepare yourself and your business for a second lockdown.

Tips to financially prepare for a second lockdown  

In this section, we are going to separate the tips into two; Personal and Business tips. This guarantees you are prepared on both ends in case PM Modi decides to issue a lockdown measure.   

  1. Personal financial Tips
  2. Savings

Savings are important in case there is a lockdown. That is what you and your family shall be surviving on until the borders are opened. Therefore, ensure you save every coin you get from your employer.

Furthermore, there are various saving methods you could use to ensure each coin is accounted for. There is the 60/40 rule, 50/30/20 rule, among others. But let’s expand on these rules since they are simple to follow whether you are in the formal or informal setup. 

The 60/40 rule suggests using 60% of your income to cater to your basic and utility bills. Then the remaining 40% goes into your savings account. If you are making 50,000 rupees, 60% of it goes to basic items. This translates to 30,000 rupees. The remaining 20,000 rupees go to your savings account.

Alternatively, you can use the 50/30/20 rule. The rule states 50% of your income goes to the monthly expenditure. 30% is allocated to your savings account. The remaining 20% is used on other wants. This could be paying for network services, purchasing clothes. 

  • Taking advantage of discounts

During the pandemic, there have been a lot of businesses offering their products at a discounted price. If you find such offers, utilize them and ensure you purchase the needed items for your households——the trick is customizing on discounts while controlling your desires. Take what you need and not what you want.

Before heading to an online shop or physical store, ensure you have a list of the items you need. Stick to the list, and anything beyond the list shouldn’t be added to your cart.  Also, make budget cuts and buy the basic items.  

  • Renegotiating with your bank

You might have taken a loan to finance your education or purchase a car or vehicle. We are at tough economic times, and banks understand this. That is why they are always ready to listen to you.

Suppose you have outstanding debt, approach your bank and renegotiate the loan repayment plans. Though the interest will remain the same, you shall be given a longer tenure. That ensures you don’t strain while servicing your loan. However, ensure you present a genuine reason for the bank. Don’t hide any information and be clear about your reasons.      

  • Business tips

When it comes to your business, you need to remain afloat and overcome the storm. Whether there is a pandemic or calamity, your business needs to pull through. Here are tips on how to keep your firm afloat in case of a lockdown. 

Make agreements with clients and suppliers.

Having a good reputation with your clients and suppliers is vital to your business. The remain afloat amid the pandemic, we recommend talking to your consumers and supplier. Ensure you make things clear about your invoice. Let them know what the payment terms are.

For example, you could choose to reduce the payment terms. This ensures you remain liquid and the goods you delivered on time. Additionally, you can offer them discounts for loyal customers, making it easier for them to foot the bill on time.

On the other hand, when it comes to your suppliers, finds a way to request a discount or a longer time to repay the debt. This makes your business profitable amid the pandemic.

  • Seek alternative ways to keep your business open

Having an alternative way to keep your doors open is a crucial factor. For a business to survive, it has to be dynamic. Suppose there is a lockdown in your Region; find creative ways of delivering the products while keeping safe. You could choose to move your business online or even provide door to door service delivery. This keeps your business afloat despite the pandemic.

  • Seek credit and loan options

The best credit and loan option amid the pandemic is seeking goods on credit from suppliers. Instead of making the payments immediately after the goods are delivered, how about making the payments after selling them. 

This keeps your business liquid and ensures operations runs smoothly. However, you will need to have a good relationship with your supplier. Once you have come to terms of payment, ensure you honour the agreement. On the hand, ensure you have a stable and strong business plan. The plans should touch on where to get finances in case of a rainy day.

Though, at the moment, bank loans are being offered at a lower interest rate. Hence, take advantage of this if you need a business loan urgently. Avoid online lending ups since their interest rates are which and the loan tenure fixed. This, in turn, affects your business credit score, which is not good.  


Whether we might be heading to a full lockdown or not, you need to be prepared financially. Hence, always prepare for the future and ensure you have a positive mindset. Having a healthy mind keeps your family and business running. Don’t rush through things; take time to think and strategize.  

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