How to plan for the unexpected

Life is full of unwanted surprises and everyone will experience some of them at one point in time.

You might have gone through things like sudden job loss, medical emergencies or even the sudden death of a loved one, all of which leave you feeling financially unsettled especially if you don’t have any plan in place.

Since we know that unexpected situations are to be expected, why not start taking care of your finances more as a preventative measure.

It’s easy to get excited with the short-term enjoyments without considering what could happen tomorrow and that’s no way to live if you want to at least be in a better position to deal with these sudden experiences.

Tackle the future hurdles with these financial plans.

When it comes to career choices, many find what they like and settle on that single stream of income.

So then what happens when you’re suddenly laid off, which is exactly what many people are facing right now? You will be forced to think outside the box so that you can put food on the table.

Before any of that happens, God forbid, try and diversify your career by having at least two streams of income. In case one fails, you will have the other to survive on in the meantime.

Those few coins you get as your pocket change could actually come through one day. You might realize that you need an extra five hundred to handle grocery shopping, when you’re struggling to make it through the month or that you didn’t budget for something quite well.

Loose change builds up quickly so you should definitely embrace the habit of saving them for a rainy day.

Insurance is there to handle some of those major expenses. Some of the options you have are life insurance that compensates your loved ones in case you’re no longer there to take care of them, auto insurance in case of a car accident as well as health insurance when sudden medical emergencies arise.

Having these strong backups in place will save you and your family from expensive bills in future.

These types of savings are great for instances where you’ve been suddenly laid off and need to survive or in case of minor medical emergencies or even times when you need to take you pet to the vet urgently.

Set up an emergency fund by setting and achieving monthly savings targets. You also have to be good at resisting the temptation to withdraw some of that cash when you’re not really in an emergency situation.

There are times when the only alternative you’ll have is to take a small loan. You have the option of easily accessing some of them directly through your phone and these actually come in handy in emergency situations.

If you’re always late on payments or have bad credit you will have a hard time getting a loan when you really need it.

So, make sure you have a good standing at all times and if you request a loan, pay back on time in case you will need some help at one point.

As a last tip, you should also ensure you build a good support system around you. They are an important part of helping you get hack on your feet because it’s possible to reach that point where you’re struggling to get by and all other options are exhausted.

They will help you recover mentally and emotionally while you’re going through a tough time and maybe some of them can support you financially as well.