COVID-19 Derails Trips: Ways to Utilise Travel Fund
The Coronavirus pandemic has not only impacted the travel sector but the global economy as a whole. Business activities have come to a halt, while the government is making every effort to ensure proper implementation of the nation-wide lockdown.
With travel ban and stricter restrictions on movement, the vacation dreams for many people do not seem to become a reality in the near future.
Some of us have managed to save a lot of money, given the fact that spending on shopping, dining out and travelling has taken a backseat for the time being. Some are bracing up for the changed economic scenario and have already begun investing in learning new skills.
Are you wondering how to spend the money you saved for your next trip?
We tell you some smart ways in which you can put your travel fund to good use.
Build Up Your Emergency Fund
Creating an emergency fund is a good habit as it provides a financial buffer in times of adversities. It is much more reliable and less burdensome compared to heavy-interest personal loans or credit cards. Ideally, you should save money enough to meet the living costs for at least 3 to 6 months. An emergency fund should be easily accessible when needed. So, choose a savings option wisely.
Pay Your Utility Bills and Other Dues
Take a look at your outstanding bills. Your travel fund will prove handy for payment of electricity/water bills, mobile phone bills, credit card bills, loan EMIs and insurance premiums. Although the government has allowed some relaxation on payment of outstanding dues; however, there could be accrued interest charges. Credit card interest rates are quite high. So, you can consider paying off those bills with the help of your travel fund.
Opt for an Investment Plan
While you are spending your time in self-isolation, it is the best time to reorganize your finances. Investing early in life is certainly beneficial in the long run. Start saving for your retirement or go for good investment options such as a Systematic Investment Plan (SIP). Keep in the mind the long-term benefits when choosing an investment plan.
Secure Your Health
It is advisable to utilize this lockdown time as an opportunity to review your healthcare needs. There are a plethora of options available if you are looking to join virtual fitness classes. Also, you can never go wrong if you choose to spend your money on an insurance policy. Opt for a family health insurance policy or consider boosting your existing policy with super top-up health policy.
Help the Needy
The outbreak of the Coronavirus disease and the subsequent lockdown has affected the daily lives of millions of people, especially those belonging to low-income families. There are numerous NGOs and volunteers who are working hard to ensure relief to poor people. It is said that ‘charity begins at home’. So, you can begin by donating money and essentials to people you know personally, like your domestic help.
Ensure your family gets the best health care. Choose a health plan from Care Health Insurance (Formerly Religare Health Insurance) and get cashless treatment facility at any of the 7400+ network hospitals.