Question

Briefly explain how Covid-19 has caused you financial hardships.

Answer 1

the problems faced due to Covid-19 can be classified as below-

1. utilisation of emergency or contingency funds-the funds which was reserved for any contingency or emergency purposes had been completed utilized.
2. difficulty in paying the instalments-there is no funds left for the repayment of loan due to inability to save in the short run even after the aid of government
3. risk and fear of losing job and pay-cut-Losing of job and pay cut has created another problem.when there is paycut that means disposable income has been decline in the hands and thus the payment for food,rent and essential item goods became very difficult.
4. liquidation of securities and long term funds ( fixed deposit) for survival purpose-various savings and long term investments were liquidate due to lockdown in the economy and therefore after the consumption of emergency funds the criris forced us to use the funds which were suppose to be a source of income in the near future.
5. mentral stress-lockdown has caused various health challenges which may arise further financial expenditures. Anxiety,depression and other factors created a burden and mentral stress on the mind cocnerned with the survival,job security,repayment of debt,fear of bankruptcy etc.