With all of our preparation and anticipation for the future, we can’t predict exactly what will happen. Whether it’s a broken bone or losing a job, our lives can seem like they’re going according to plan – until they’re not.
Taking the time to plan for the unexpected and consider the worst could help you overcome the obstacles in your path. Wherever life may take you, don’t let it sweep you off your feet! You can’t protect everything, there’s too much in the unknown. You can, however, take these steps to help prepare for these blindsiding life events.
Build An Emergency Fund
Creating an emergency fund is one of the safest ways to ensure financial stability in a case of an unexpected life event. In an ideal world, you would want to set aside about six months of living expenses in a fund you can use during a time of an emergency. It can be difficult to prioritize your extra savings with other expenses like your financial goals, paying off debt or your child’s education, but saving a little here and there for the unexpected will give you cash flow in a pinch.
Cutting Expenses On A Whim
Whether it’s that pricey gym membership or cable subscription, make a list of the expenses you’d be able to cut during a crisis. In the case of an emergency, it might be difficult to try putting together what you can do without, so plan this out ahead of time! Depending on the life event that takes you by surprise, you might need to think about the bigger things to cut back. Selling your new car and buying a less costly option or putting a halt to your expensive vacation plans may be a good place to start.
Protect Yourself With Insurance
Aside from cutting back on expenses and building up an emergency fund, a smart move to prepare for a setback is to invest in insurance. The four main types of insurance to consider would be disability, home, life and health insurance. Developing these plans will help you feel better prepared for the road ahead!
At Camino Federal Credit Union, one of our main goals is to make our members feel safe and protected. Dependable coverage helps ensure financial relief when you need it most. That coverage means you’ll take comfort in knowing you’re protected! See more details of our insurance options from TruStage.