Unexpected things happen all the time. One day everything is running along smoothly, the next, you are being made redundant, or you have had an accident. Whatever the nature of your unexpected event, you need to ensure that your finances are in order and that you are prepared. Doing this will take a lot of stress off your shoulders, just when you need to have your head the most. It will also mean that you know your family is protected, and your investments won’t suffer as much as they would do if you did no planning at all. Forewarned is forearmed, so let’s look at a few ways you can prepare for the unexpected:
An Emergency Fund
It is best you start this straight away as you will need the sum of at least three to six months of your regular income to protect you in the immediate aftermath of the unexpected event. This will allow you time to address the situation, recover a little if you need to, take a breather and go forward with a plan. The last thing you want is to jump into any unwise decision because you are desperate. If money is a struggle, and building a fund may be difficult, why not think about getting rid of some of your clutter and reselling it. This can be used as the start of your emergency fund and can show you all the useless items you purchase, with a view to developing new habits.
Live Within Your Means
It’s all about building good habits. So, in order to build a fund, you have to be able to live within your means. Don’t buy very expensive items on credit if you can avoid them. These debts will not go away just because you are ill. Don’t overspend at the mall and buy second-hand, etc.
Do a little research and discover what life insurance is best for you and your family. In the event of your death, your family will be protected. This is doubly important if you are the main or sole breadwinner and you know your family will really struggle should you pass. Also, it may be with your while investigating other sorts of insurance that protect you shod you have an accident that means you are unable to work again.
If you are going through an unexpected divorce, there are a few ways you can protect yourself, even if you don’t have a prenup. First, get a credit history of the joint accounts, and see if there are any nasties lurking that you were unaware of. Then separate your bank account and start building your own money separately. You may way to say building a credit history too. If it goes as far as court, you want the judge to see that you are sensible with money. This will be able to protect you in some way should there be any outstanding debt. You may way to say building a credit history too. If you and your ex-partner are fairly reasonable, you may be able to use an Arbitration Lawyer and stay out of court.