Thread by @abadjate

Let me tell u a story:

I am someone betwn d age of 35-45. Married. Hve a kid. Wife doesn't work. Am a higher/mid level exec wid a large Co.

I hve 5 yrs worth of savings in financial assets - stocks, bonds. I hve bought the flat tht I live in on a 20 yr loan in 2016.

1/7

Hve 2 credit cards. No revolvers. But hve a 5 Yr car loan for a nice car bot 3 yrs back & 2 EMIs running for an iPhone and a big tv purchased last Diwali.

Usually take 1 dom trip every yr & a foreign trip perhaps once in 2 yrs. Go to movies 2x a month. Eat out 2x a week

2/7

Worked hard last 2 yrs. Boss promised a good raise + bonus this yr aftr 3 tough yrs. Was considering gifting wife some jewellery on d upcoming anniversary & d kid a laptop on birthday. Was also looking to either bump up SIPs running since last 7 yrs (Am a patient investor)

3/7

Or perhaps make a downpayment on a flat and take out a 2nd mortgage

Then Covid happened.

Now after 6 weeks of WFM, boss tells me on Zoom "sorry but Co is immediately cutting Salaries by 20% this yr and no bonus" Rumours of downsizing hve also begun

4/7

3 months out. Lock down is over. Salary cuts still remain as Co turnover is struggling.

Suddenly govt has also announced a special Covid tax on people in my salary bracket bringing down my take home by another 10%. I don't hve confidence to take family out to movies

5/7

Or to the mall. Cut down eating out. Postpone all impulse purchases planned. Think it's better to spend money on gud food cooked at home. Decide to reduce risky investments bcoz don't knw whts going 2 happen if dis continues for 6 more mnths. So keep money in bank FD

6/7

I am someone who is in the top 5-10% of the country by income levels. I am someone who has been the back bone of India's last 20 yr spectacular consumption story. I am d reason Godrej Prop, BaFin, HDFC, JubFoods, AsianPaints, Maruti etc got their valuations!

What happens next ?