The first principle of my blog is Creating Ecosystems of Success, and two key focuses are Financial Literacy/Money and Health/Wellness. In life, we never know what is going to happen which is in part exciting but problematic at the same time. It is likewise important to understand this, and to try to figure out ways to be proactive about the unexpected. The following contributed post is thus entitled, Getting Prepared For The Unexpected.
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While it’s great to think positively about the future, it’s also good to be prepared for the unexpected as you never know what might happen – good or bad, it could be an unplanned pregnancy, a new job opportunity or you could lose your job, have an accident or get ill? Any of these events could have and probably will have a significant impact on your finances. So, are you prepared?
Be Realistic
Nobody plans for illness and no one prepares for a tree falling on their car. However, if you do prepare for unexpected events then, you’ll know how to deal with them, it won’t be such a shock and will hopefully mean you have some money or people or access to cash or the right people to help you through it. It’s tough to focus on adverse and traumatic events until you have to, however, if you do and you can think about what could/might happen, and what you would do about it, mentally walking it through, it can help you to work out what you might need.
Start with an Emergency Fund
A priority step for preparing for the unexpected is to have a substantial emergency fund in place. Your emergency fund should ideally cover you for 3-6 months of living expenses. If you are single, or you are a single-income family, you may want to consider building an emergency fund of up to a year, which will provide security for you and your family should you lose your job and have a hard time finding another one, or suffer an unexpected illness or gap in your earnings.
It is nice to know you have the money there while you are dealing with other issues such as job loss, illness or anything that might affect your income. Think about what you already have or is there anything you can sell, can you sell annuity payment for example? Do you have any money coming in from an inheritance that you could put by in case of an emergency?
Think About The People You Know
Professionally and personally, do you have people in your life who will be willing and able to help you if you need them? Do you know people to give you advice, coaching, or counseling? Each person you know will be able to offer something different; some people will be great at providing practical help such as meal deliveries, or personal friends who will stop by your home to help out. Having a support system can be invaluable when an unwelcome event occurs.
What About Your Job?
If you have an accident or fall ill and find yourself having to be away from your job for an extended period, this can add additional stress as you might be worried about your work, your clients and your team. Will they be able to manage without you? If you get a system in place for these kinds of eventualities, this will help to keep your mind at rest, as well as improve your team and employer know that everything will be taken care of.
