Nothing can cause us more anxiety or disrupt our financial plans quicker, than a sudden loss of income. As much as we strive to be the healthiest, most productive person we can be, we cannot always control what happens to our income. By taking the following steps, you can protect yourself from financial distress, should the worst come to pass.
Feed Your Emergency Fund: Calculate how much income you earn in a month. Now, triple that amount. This formula is one way to determine the amount to have saved in an emergency fund. Next, set a goal of how long you’ll need to build your emergency fund. With this rainy-day money, you’ll be able to cover your debts and household expenses, should you face a loss of income. When the unexpected arises, an emergency fund can help you maintain your financial strength, as well as your quality of life
Insurance: Even if we are in tip-top shape, an accident while you are trimming your tree, or an unexpected illness can greatly limit your ability to work or earn income. Consider speaking with a financial professional to determine what kind of insurance may be right for you.
Multiple Sources of Income: If income instability is something you worry about or foresee in your future, think about taking on a second career. This is a powerful way to strengthen your safety net in the event of the unexpected. A second career may not only give you the financial security you crave, it could also allow you to explore skills and avenues you didn’t know you had! Some people even find enough reward in their second career that they make it their main pursuit.
To give yourself a better sense of security, build a fort of protections around your ability to pay your bills. You work hard; don’t let unforeseen circumstances leave you in a lurch!
To learn more ways to improve your financial life, visit the Syncis blog at https://www.syncis.com/blog