The reality is obvious, most Americans are shockingly unprepared for the unexpected. While no one wants to dwell on this fact, we cannot ignore that life is filled with unexpected moments. These situations can surprise us and catch us off balance. In the event that something happens to you or someone in your family, a lack of financial preparation can be especially devastating for a household. Whether the unexpected is a car accident, medical emergency, unemployment, or even death; failing to plan for the tragic can make these situations even more unbearable than they already are.
According to statistics, if a primary wage earner were to pass away, 70% of American households wouldn’t be able to keep up with expenses. Where do you fit into this number? Consider this, what would happen if a primary wage earner in your household was no longer able to work? How long could you and your family maintain financial stability? These questions are not meant to place an unnecessary fixation on tragedy, but to encourage everyone to prepare for future possibilities.
There are three things that you can do today that will financially prepare you and your family for the unexpected:
Create an emergency fund. Shockingly, 61% of Americans are living from paycheck to paycheck. This doesn’t have to be you! Create an emergency fund savings plan that takes just a little money out of each check to set aside for the unexpected. When you’re starting out, don’t feel that this has to be a substantial amount! Saving something is better than saving nothing. Eventually, your goal should be to have 6 months of savings built up in the event of an emergency.
Get insurance. Sadly, only 20% of adults ages 18-64 have public insurance. Do you have insurance? If not, there are ample benefits in setting aside just a little bit of money each month to make sure you are covered. If an unfortunate event occurs, life and accident insurance gives you a peace of mind that you can focus on what you need to without worrying about how you will pay for basic necessities like food, gas, and your monthly bills. When the unexpected occurs, insurance is proven to be a worthy, wise investment.
Invest in financial education. Even though the financial world can seem daunting and exhausting, it is always wise to invest time and money in fiscal education. Most Americans are unaware of new trends or research that will rapidly change the landscape of how we spend and save money. This doesn’t have to be you! Follow financial blogs like this one and YouTube channels that will teach you how to wisely manage and maintain your money. Spend just 5-10 minutes per day reading the money section in the newspaper or watching financial segments on the news. Just like everything in life, a little bit of effort can go a long way!
These are just three simple ways that you can begin the journey of preparation for unexpected events. Our hope is that nothing tragic ever happens to you or your family. In the event that it does, however, we want you to be adequately prepared and ready. For more information on financial strategies or insurance, visit our website and see how we can help you!