In life, we never know what is around the corner. Which is why it can be so important to ensure that we try and plan for every kind of eventuality, especially something that will have a negative impact on our finances.
Money makes the world go round, if you suddenly don’t have your normal income, you run the risk of not paying your bills or meeting your agreed arrangements with banks and mortgage providers.
So how can you save for every eventuality? What are those unexpected events we may all have to deal with at some point in time? I thought I would share with you what some of them are.
Losing a job
Losing your job can be devastating on many different levels. You feel the emotion from it, but you also feel the anxiety and the worry. Many people rely on their income to pay their bills and if that suddenly disappears, what will you do?
No one can predict when things might go wrong with your job or career. However, it is still important to ensure that you save a portion of your wages separately just in case.
Some people would consider 10% of their monthly salary put aside each month would be more than enough over time to help if you suddenly lose an income. It can often be small change but could make the biggest difference.
An accident that wasn’t your fault
No one knows when their life is about to crumble, and being involved in an accident such as a car crash can be one of the ways you can struggle.
It can mean taking time off work while you recover from injuries. However, in these sorts of circumstances, for example, getting compensation for shoulder injury requiring surgery, you could end up being able to make a claim.
While you may not be able to prepare, you should always research your options once it happens to ensure that you get everything you are entitled to.
A marriage breakdown
No one enters into a marriage thinking it is going to fail. But sometimes, these things happen. Relationships can break down for all sorts of reasons, and while you may not always want to be prepared in advance for, it’s always worth ensuring that you have agreements in place.
You may not want to get any form of pre-nuptial agreement, but you could always have the conversation in advance to ensure that things are handled amicably if you do decide to file for divorce.
Things going wrong in the home
There are many things that can go wrong in the home, such as burst pipes and leaks. But the best advice would be to prepare in advance and cover yourself with insurance policies that will cover you for every sort of eventuality.
Other things to consider would be the security of your home and prepare in advance against things like theft and burglary. This is when enhancing your security systems could help provide you with savings in the future.