When unexpected events occur, one thing that is always hit is our finances. It does not matter on the nature of the event, money is always going to be involved. That is the nature of the world we live in. Although being fully prepared for an unexpected event is impossible, there are many ways we can mitigate the fallout, and one way is through careful financial planning. Remember that it doesn’t matter who you are or what you earn, we can all prepare for unexpected events.
Here are a few tips:
Emergency Fund
It is probably a wise idea to begin saving in an emergency fund. The more you can put away, the better. This may mean that some of us have to change our spending habits. If you are always in your overdraft and already have debts, for example, you have nowhere to go when a financial crisis happens. Start living within your means, and one way to do this is to be aware of your spending. Take our cash rather than use your card, as this helps you physically see the money draining out of your purse or wallet.
Insurance
Most of us wouldn’t drive without insurance, so why should it be different in other walks of life. Taking out a range of insurances will definitely help mitigate any financial loss. Think about getting life insurance, income insurance, and umbrella insurance to name a few.
Avoid Using Credit Cards
The last thing you want in the event of something happening to your finances is a large debt to pay off. This will only complicate any issues and add stress to an already stressful situation. Living within your means is probably the best course of action. Accept who you are and your position without always trying to keep up with the Joneses. Clearly use credit if you have to, but don’t rely on it, or make it a habit. Ut should be seen as a last resort rather than a everyday occurrence.
Research
If you want to be really prepared come a financial loss of any kind, it helps if you have already gone through a process of research. Discover places that can help you, such as charities or good samaritans who you could contact to help you emotionally and give you advice. It may even be worth having some layer number just in case there is anything they can get for you, such as a wrongful death lawyer who can help you get compensation for your loss if the circumstances warrant it. It may even be prudent to read some testimonials of power who have lost everything but come back swinging. How did they do it? What would you do if you were them?
It is important to remember that your attitude and ability to prepare for the worst will see you through. At the end of the day, your attitude and working to see the light at the end of the tunnel will be your saving grace.