Living on single income and earnings break

The cost of living has increased exponentially in India, especially in urban parts. In addition to this, today's youth is very aspiring. If you are not born with a silver spoon, you need to work your way up to fulfil your desires as well as carry out your responsibility, it’s an uphill task. And this becomes even more difficult if you are the only working member in your family and have ailing parents to take care of. Here are a few tips to handle your finances if you aspire to be a self-made person.

Plan ahead
You should plan ahead for an emergency fund in a case your current income also gets discontinued for some reason. This is the fund that will help you when you are on a break. Plan for cash flow that will help you meet your expenses of at least the next six month. Importantly, do not depend or dip into your existing emergency funds to meet exigency situations.

Protect yourself and other family members
One of the expenses that you cannot defer is your medical expenses. Therefore, covering all your family members will health insurance will help you deal with the situation longer. It is always better to have individual health policies to be on the safer side. With one single earner and all other family members depending financially on you, consider reviewing your life insurance-increase your life cover through pure term insurance.

Better Budgeting
You should re-budget your household expenses and reduce your discretionary expenses. This will help you sustain in your current earning for longer.

Keep your investments intact
The current situation is temporary in nature and should not divert you from your long-term goals. Therefore, if possible continue with your existing systematic investment plans (SIP) in mutual funds. Contribution to Public Provident Fund should be restricted till the time you do not start earning again.