We strive for a better life, constantly working for a better future and everything associated with it. However, irrespective of our best efforts, we cannot control certain things. Although none of us can foretell the future, we can at least try to protect our finances.
The following solutions can ensure your financial safety even in adverse situations:
- Crisis 1
A health issue diagnosed suddenly, elderly contacting ailments, or a car accident, everything have an adverse effect on our savings. Other life expenses are there as well.
Solution: The best way to secure your family and yourself from uncertainties like those mentioned above is to get a health insurance for all. Do not delay. Do it as soon as possible!
- Crisis 2
Job security is an illusion, irrespective of whether you are in a promising start-up or a reputed MNC. Various factors like bad management of operations, lack of finance, or even cost-curbing can make a company fire its employees.
Solution: A portion of your monthly salary should be saved and kept in an Emergency Fund. The fund money should be equal to almost 6 months of your everyday expenses, so that if you lose your job all of a sudden, you have some resource to help you out, until you find a new job.
- Crisis 3
Poor investment decisions such as investments in assets that only get benefited from capital appreciation, like land, can derail your long-term financial objectives.
Solution: Avoid hasty decisions, particularly those involving immovable assets, as there can hardly be any recovery from these. Take help of qualified financial planners before you lock your hard-earned money in fixed assets that cannot be easily converted into money.
- Crisis 4
If the sole bread-winner of your family suffers from a prolonged ailment or meets with an accident, you might be needed to look after the dependents. Ignorance about the commitments and investments of the one from whom you are taking over can prove costly.
Situation: See to it that every earning member has life insurance that can take care of the family’s financial security in case of emergencies.
- Crisis 5
Houses and other properties can be damaged severely by natural disasters like floods, earthquakes, cyclones, etc. Poor infrastructure can cause extremely severe damages.
Solution: It is wise to protect your livelihood from such disasters with home insurance or keeping an emergency fund ready. All important documents should be kept in bank lockers or digital lockers so that you can start afresh after the disaster, irrespective of the fierceness of the damages.
Although we cannot control everything, we can, at least, try to be secured and prepared for whatever life and fate throw at us.