We constantly work for a better life, a better future, and everything in between. But no matter how hard we try, some things are never in our control. Though we cannot predict what the future holds in store for us, we can try to bubble-wrap our finances and to some extent our humane side. Here are a bunch of solutions for situations which could help your financial well-being.
#1. Accidents: A road accident, an elderly family member slipping in the bath, or an ailment diagnosed all of a sudden, all make your savings vulnerable to long hospital bills and other life expenses.
What You Should Do: The ideal way to secure yourself and your loved ones from uncertainties such as these is to get health insurance. Don’t put it off for later. Do it now!
#2. Job ‘In’ security: Be it a fancy MNC that you work for, or a promising startup, job security is a myth. Different factors such as lack of funding, poorly managed operations, or even cost-cutting could make your company go on a firing spree.
What You Should Do: Save a small portion of your salary every month and move it towards an Emergency fund. The fund amount should be equal to six months of your living expenses, so that if you are laid off without notice, you have something to fall back upon, till you find something new.
#3. Poor investment decisions: Investing in assets which only benefit from capital appreciation, such as land could turn out to be very poor financial decisions.
In case, you anticipated its value to go up with a new highway being constructed which comes to a halt due to a government shortcoming, it could very well derail your long-term goals.
What You Should Do: Please don’t make hasty decisions especially with immovable assets, as there is no recovery from those. Take to efficient financial planning before locking your hard earned money in non-liquid assets.
#4. Family Responsibilities: In an event wherein, your family’s bread winner gets into an accident or suffers from a long ailment, you might be asked to take over responsibility for your dependents. Don’t be ignorant of your parent’s investments and commitments, your ignorance could prove costly.
What You Should Do: Make sure every earning member in the family has life insurance, so that in case an of an emergency, your financial well-being is taken care of.
#5. Poor Infrastructure issues: We try to secure our home and other property by choosing earthquake resistant buildings, but there are always existing properties, which are not resistant enough and could fall prey to natural disasters such as floods, or tornados. Poor infrastructure could cause damage in such testing times.
What You Should Do: It is economically viable to secure your livelihood by keeping your emergency fund ready as well as keeping your important documents in a bank account or DigiLocker so that no matter how fierce the damages may be, you can resume life after the bad phase.
We cannot control it all, but we can try to be prepared for life and everything that comes with it.