Due to Covid-19, building an emergency fund is now a top financial goal: Survey

Covid-19 has been a wake-up call for many of us, whether it be regarding our health or our wealth. When it comes to our personal finances, many of us have changed the way we view money. A recent survey by Scripbox, a digital wealth manager, found that building an emergency fund has become the top financial goal in the current environment across all genres. While 34% of men chose health care as their next major financial goal.

More than 80% of respondents say that Covid-19 has been a wake-up call for them, to get their personal finances in order and course correct for better financial health. One in three respondents say that the biggest stressor during Covid-19 has been financial health and well-being, ahead of physical health and relationships.

Both men and women recognize the role of the pandemic in changing their behavior towards savings and investment. “28% of women surveyed say they are smarter investors today than they were before the pandemic, compared to 26% of men surveyed, who evaluated themselves similarly,” said a press release issued by scriptbox.

This was an online survey conducted by Scripbox where they polled almost 650 respondents with equal representation of women and men.

Why you need an emergency corpus and where to invest your money to create one

What is an emergency fund?

When it comes to our personal finances, many of us have changed the way we view our money matters. A recent survey by Scripbox, a digital wealth manager, found that building an emergency fund has become the number one financial goal in the current environment. So what is an emergency fund? It is a contingency fund that not only helps financially in the most difficult times, but also prevents the derailment of your savings for long-term goals.

“Our respondents confirm that in addition to saving more and investing to build wealth, they are paying more attention to reducing discretionary spending and building an emergency fund, to be better prepared in the new normal. Furthermore, while traditional media While savings are still popular, it’s encouraging to see a greater preference for solid investment options like mutual funds over trading. It’s about being in control, and that confidence of being in charge helps create a greater sense of well-being,” Atul said. Shinghal, Founder and CEO of Scripbox.

Here are more results from the survey.

  • 51% have started saving more than before, while 36% of respondents are investing more in wealth creation to improve their financial health.
  • Women are supplementing their increased savings with reduced discretionary spending, a move supported by 29% of women surveyed.
  • 20% say they have a financial plan to reach their personal goals, while 15% of respondents say they are seeking professional help with investment decisions.
  • 53% of respondents put their excess money in a savings account, while 41% say they put it in a fixed or recurring deposit.
  • 37% of respondents prefer mutual funds as their number one investment choice, followed by stocks (24%), gold (24%), cryptocurrencies (14%) and buying property (14%).

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