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

Covid-19 has been a wake-up call for many of us – be it with regards to our health or our wealth. With regards to our personal finances, many of us have changed the way we look at money. A recent survey done by Scripbox, a digital wealth manager, found that creating an emergency fund has emerged as the top financial goal in the current environment across genders. While 34% of men picked healthcare as their next important financial goal.

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

Both men and women acknowledge the role of the pandemic in it having changed their behaviour vis-à-vis saving and investing. “28% of women respondents say they are smarter investors today than before the pandemic, compared to 26% of men respondents, who assessed themselves similarly,” stated a press release issued by Scripbox.

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

“Our survey respondents confirm that alongside saving more and investing for wealth creation, reducing discretionary spending and creating an emergency fund are what they are paying more attention to, to be better prepared in the new normal. In addition, while traditional means of saving are still popular, it is heartening to see an increased preference for robust investment options like mutual funds over trading. It’s about being in control and that confidence of being in charge, helps to create a greater sense of well-being,” said Atul Shinghal, Founder and CEO at Scripbox.

Here are more findings from the survey.

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