This chapter explores the socio-psychological impact of COVID-19 on Individuals’ behavior and its cognitive influence on their decision making. This chapter discusses contemporary issues arising due to pandemic and how individuals’ behavior is getting more impulse and panicky. It is affecting their psychological response with respect to everything including financial planning, education, buying and selling, cash hoarding, etc. The chapter attracts readers’ attention towards individuals’ panic behavior caused by the sudden pandemic situation through various examples. How it is affecting work-life balance, how it is shooting up stress level to manage livelihood, enhancing the levels of financial anxiety relating to financial products and services, health budget, etc. It is recommended that individuals’ panic behavior must be monitored and controlled at any stage since it affects the market, leading to several other negative impacts. Relevant tools need to be employed, which chapter suggests; readers can follow the recommendations or use alternatives. The socio-psychological dilemmas have been discussed in the context of individuals’ short and long term financial and non-financial decision-making.