Financially Preparing For The Journey We Call Life

Life is a journey full of little surprised, no day is the same, and you can’t predict what’s going to happen next. When you think you’re all sorted, something can come along out of the blue and turn everything upside down. But that’s what life is all about right? Never knowing what is around the corner whether it’s good or bad? It could be an unplanned pregnancy, a new job opportunity abroad, or it could be that you lose your job, you’re involved in an accident, get ill or lose a loved one. Anyone of these events could potentially have a significant impact on your finances. So, are you prepared for life, and for what could happen? Do you know how you can prepare for these kinds of events while still enjoying yourself and living life to the full?

Be Realistic

No one plans for illness; it’s a rather morbid and negative way to live life? No one prepares for a having a tree fall on their car – why would they? However, when one of these out of the ordinary events happens, it is good to be prepared and to know how to deal with it. It also makes life so much easier if you have the means to deal with such an event. This way, you won’t be surprised or shocked, you might even have some money put by, and hopefully, you’ll be able to talk to the right people to help you through it. It’s difficult to focus on traumatic events until you’re forced to, however, if you do and you can mentally walk through a big event then it can help you to work out what you might need. Do you know what you would need if you were hit with a sudden illness, a personal tragedy, or a natural disaster? Think about what you would need for your family and what you would need to do professionally. What help would you need to get through the situation in the best way possible?

Can You Prepare For A National Disaster?

Do you live somewhere where flooding or storms are frequent? If you do, then it is is a good idea to prepare for these kinds of natural disasters. You can see from the media the devastating effects these events can have on homes and families, and they can also happen very suddenly. Insurance is a must, and as well as that, a good emergency kit and five-day supply of food and water are advisable to prepare in your home, car or office. You don’t have to prepare anything extreme or elaborate, but planning in this way can make a stressful event much easier to get through.

Think About The People You Know

Who is in your life who would be willing and able to help you if you needed them? Is there a decent number of people you can count on? Have you helped people out yourself in the past when they have needed you? It doesn’t have to be just financially, but do you know people who can give you advice, coaching, or counseling, then make the most of them. Each different person will be able to offer something from a unique angle; some people will be good at providing practical help such as home-cooked meals, friends might stop by to help out around your home or with your kids. Having a support network can be invaluable when life gets in the way, and you need it, so think about who yours would be.

What About Your Job?

If you get sick or have an accident and find yourself off work for an extended period of time, this can add additional stress on top of whatever you’re going through. You will probably be worried about your job, your clients and your team. You will wonder if they will be able to manage without you. It can be a good idea to get a system in place for these kinds of eventualities; this will help to keep your mind at rest, as well as improve your team. Your employer’s mind will also be at rest knowing that everything will be taken care of. Organizing passwords and your workflow enables more freedom for you and means you won’t have to worry about it making you replaceable. By sharing information and cross-training your colleagues adds value to the company, and as a valued employee you will not be easily replaced. Having this helpful attitude is very beneficial to a company, and they will know that. If it wasn’t for an unexpected life event, but even when you go on annual leave, it also makes life easier for everyone rather than creating a sense of panic and emergency.  

As well as the day-to-day job elements, it is also advisable to invest time in building strong working relationships. Having a reputation for being a reliable and valid member of the team is essential should a personal emergency arise. It makes you an invaluable part of a business community if you can create unique contributions and look for innovative ways to add value this will ensure a higher chance of your company supporting you and giving you the time you need when you need it most.

Also, while you shouldn’t do things for people to get something back, however, if you support your colleagues when they need you most, then they are more likely to help you out too when you need them.

Think Clearly

When life throws you a curveball, it can be hard to think properly and not get caught up in the emotional aspects surrounding what has happened. Make sure that you take care of yourself as much as possible during these times and find ways to alleviate stress and keep yourself calm. Whether it’s going for long walks, drawing, or just spending time with family and friends, find the activities that will help you remain calm and centered so you can make the best decisions in stressful circumstances.

Begin with an Emergency Fund

One of the best you can do is to prepare a substantial emergency fund. Your emergency savings want to cover up to six months living expenses ideally. If you are a single-income family, then building an emergency fund of up to a year is desirable. This will provide security for you and your family if you should suddenly lose your job and struggle to find a new one quickly, or if you are struck by an illness and have an unexpected gap in your earnings.

It is good to know you have the money there and can put you at ease and give you one less thing to worry about while you are concentrating on dealing with the other issues going on in your life such as finding a new job or attending doctors appointments.

Money Money Money

It is vital to prepare financially as much as you possibly can, do you have any money put aside if your car or boiler were to break? Saving money, investing in insurance to protect your assets and income, and creating a comprehensive financial plan can help you to bounce back from difficult times. Speak to your HR department at work about what your company benefits are and what they can offer you. More and more companies are making financial counseling and planning advice available to their employees now so knowing your employment policies and employee rights, knowing what type and how much leave you are entitled to is essential.

Do You Have Life Insurance?

Having life insurance for your family or your spouse if you are married, and especially if you have children is very important. Life insurance can provide your family with enough money for them to pay off any debt and live on comfortably should the worst happen and you’re not around anymore.  Make sure that the insurance covers the cost of your children’s education, and if your partner doesn’t work or doesn’t earn enough, they will also be dealing with the loss as well on top of everything else, so will likely need time off work.

Do you need insurance for anything else?

Even if you don’t live somewhere susceptible to natural disasters such as hurricane or earthquakes, it doesn’t mean that you are exempt. Make sure that you have sufficient health insurance, as well as renters or home insurance. While this ultimately adds to your bills and your monthly outgoings, it will save you money in the long run. Remember that accidents can and do happen and sadly the costs and consequences of these events can add up very quickly and end up leaving you in some debt.

Think Outside The Box

While all of the above might seem easier said than done, if disaster does strike when you are unprepared, there are plenty of options for you to turn to, whether it is asking family or friends, getting a business cash advance, or taking on extra work to earn more money. There are always options and advice available.

Image: Pixabay

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