Life has a way of throwing curve balls at you when you least expect it. When you think back about the events that have happened to you and your family members within the last few years, you can probably see that this is true. Each life event, regardless of how large or small it is, may require you to make physical and emotional changes in your life.
These events are also typically financially draining. The financial cost of unexpected events has a way of making the matter much more difficult to deal with. For example, a husband may be stressed about his wife developing a serious illness. While he may have concerns about her health, the matter is compounded by the financial stress of her taking time off of work and the cost of the mounting medical bills. Regardless of what happens in life, you do still have bills to pay and mouths to feed! Preparing for the unexpected now can minimize the stress when your life takes a twist or turn.
Expect the Unexpected
It is important to accept the fact that life will have its ups and downs as well as its twists and turns. No life is perfectly happy and carefree all of the time. People do get sick or injured. Accidents happen. Mother Nature causes property damage. People lose their jobs. These things can and do happen.
While you may not know what life has in store for you next, you can count on something happening at some point in the future. You cannot fully prepare for it because you do not know exactly what it is. However, you can cover your bases so that you are better prepared for any type of scenario. Understanding that the unexpected actually must be anticipated and planned for is imperative to being ready for what the future holds.
Update Your Insurance Policies
Insurance is available to provide you with coverage for everything from illnesses and disability to property damage and even death. Take time to review your insurance policies today, and update your coverage as needed. Speaking with your insurance agent can help you to determine areas where you may need to bolster your coverage for added protection.
Fund an Emergency Savings Account
Insurance can pay for the bulk of many of your expenses related to a major event, but it will not pay for all of the expenses in most cases. More than that, it may take some time to file an insurance claim, and you may still have to pay your insurance deductible. Having a funded emergency savings account on hand is imperative to being ready for an emergency. To determine how much money you need in this account, think about how long it may take you to find a new job in the event of a job loss, how much your homeowners or health insurance deductible is, or how long your coverage will last in a major health situation.
While having any money at all in an emergency savings account is better than none, it is best to have enough cash on hand to pay for a combination of events happening over a short period of time. Therefore, continue to fund your emergency savings account on a regular basis to build up a balance that you are comfortable with.
Pay Off Your Debts
When your debt level is high, you need to have more money each month to pay your bills. When you pay off your debts, you will need less money to live on each month. It can wreak havoc on your life to experience the loss of a job, high medical bills or the loss of a loved one. However, the financial impact of these events will be softened when you require less money each month to get by. You can make your emergency account balance stretch much farther. Therefore, take steps to actively reduce your debt balances.
While many describe major life events as being unexpected, it is almost certain that your life will have many more ups and downs. You may not know what these ups and downs are, but you can prepare for them by following these steps.
Disclaimer: Dolphin Asset Group is not allowed to provide tax or financial advice. All information contained herein should not be construed as such. Readers are advised to seek independent advice from a qualified professional.