How NRIs Can Navigate Financial Uncertainty Amid Global Turmoil

The global situation is extraordinary. Never before has an event had such global repercussions. The coronavirus pandemic has ravaged the majority of nations on earth. It is causing medical problems, social problems, and economic problems.

NRIs and Financial Uncertainity

As a Non-resident Indian, you will be concerned about the loss of your regular income, business decline, and wealth erosion.

You may begin to consider potential migrating back to India scenarios. You may be alarmed after reviewing your portfolio. You may have suffered significant losses in your portfolios in India and your home country. Some of your investments may be losing money.

In addition, you do not know when the business will recover or when the markets will recoup their losses, as there appears to be no remedy at present.

How do NRI deal with this financial insecurity across multiple markets?

1) Maintain existing long-term investments

You have made long-term investments based on some reasoning and objectives. Various events will cause ups and downs in the markets. The US financial crisis and the SARS infection affected the markets in the past, but in the long term, the markets recovered. Similarly, maintain investments made based on adequate research and analysis.

2) Keep your asset allocation in place

These occurrences are typically temporary in nature. You do not need to fret and act on impulse. Consider the worst-case scenario, but do not act as if it has already occurred. Be consistent with your long-term financial objectives and investment strategy.

3) Avoid purchasing physical assets and incurring debt (loans).

Unless it is an absolute necessity, do not take out loans in India or abroad at this time. You may receive offers to purchase physical assets at a price that is lower than it was prior to the coronavirus outbreak. Due to the current state of the economy, you should avoid purchasing tangible assets such as homes. If the asset is located in India, you may not be able to travel there to conduct a comprehensive evaluation. Documentation could be challenging. The purchase may not be in your best interests, which may have a negative impact on your finances.

4) Reduce Your Expenses

Reducing your expenses is a crucial step towards financial stability. One way to achieve this is by reviewing your monthly bills and subscriptions to identify areas where you can cut back on unnecessary expenses. Additionally, you may want to explore meal planning and grocery shopping strategies to help reduce your food expenses. By implementing these strategies, you can not only reduce your expenses, but also develop healthy financial habits for the long-term.

5) Keep Calm

It is difficult to remain calm during these difficult times. Your mind and body may want to react to stress. This could lead you to make decisions that are potentially detrimental to your financial health. It is essential to maintain composure so that you can think rationally and manage your finances with clarity.

6) Take Help

The majority of us have never experienced such a global, protracted financial uncertainty (Covid). It may result in various conditions and reactions. Some individuals sense a loss of control. Others may experience pessimism or melancholy. Others might take impulsive actions, such as selling their investments or overspending.

Practically assess the situation you’re in and seek appropriate assistance. You can discuss your concerns and emotions with friends and family. Video conversations allow for contact with extended family and acquaintances back home. Even virtual picnics and social interaction are possible. Mental health professionals and therapists can assist you in managing your emotions and reactions.

Consult a financial advisor. They will be able to comprehend the financial crisis better and recommend a course of action. If you do not have a financial planner, consider speaking with one. They will assist you in identifying your financial weaknesses and determining how to address them. They can create a comprehensive plan for you so that your financial objectives are in place and you are aware of your financial standing.