5 Fail-safe Ways to Plan Financially for all of Life’s Eventualities  

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If you are someone that wants to be financially safe and sound through the good times and the bad in life, you’ll need to be savvy with your financial planning. Those that manage to prevail through thick and thin are those that can design a sound financial plan and stick to it, both in their personal and professional lives. If you want to ensure that you are financially resilient against all eventualities, consider the following steps to fostering a smarter financial plan.

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Revisit what you spend your money on now
Before you delve too deeply into creating a financial plan, it’s important to get a handle on what you spend your disposable income on now. Document how much you spend on a monthly basis and take the time to highlight areas where spending could be curbed to help you live in an agile, savvy manner during times of financial hardship. It’s not an overnight process. Spend at least three months documenting your spending to pinpoint consistent areas where you needlessly splash the cash that could be cut when times get tough.

Minimize the amount of credit you use

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It’s a good idea to make sure that you don’t live in your available credit all the time. Having tens of thousands of dollars available on credit cards might sound great, but having it available when times are tough and not maxing out your cards on luxuries is even better. If you want to be in the best possible position to apply for new credit in difficult times, you’ll also want to keep a keen eye on your credit scores and ensure they are at levels that are acceptable in the eyes of lenders.

Take out insurances to cover all scenarios
If you have a young family, it’s a good idea to take out sufficient health insurance to cover all eventualities in terms of illnesses, injuries, and diagnoses. As a homeowner, it might also be worth taking out life insurance or critical illness cover that could continue to pay your rent or mortgage in the event of serious illness. If you are a business owner that deals regularly with the public, taking out general liability insurance can guard you and your company against unwanted lawsuits from third parties, or from suffering from physical or emotional damage, as well as infringements.

Private pensions are important for long-term planning
Too few millennials are taking their pensions seriously. In America alone, the retirement gap is increasing by as much as $3 trillion every single year. The World Economic Forum says that pensions and saving for the future are more important than ever before, due to the fact that people are living longer, individuals are developing more informal work structures and the fact that the cost of living continues to rise. Take some financial advice and set up a private pension that you can regularly contribute to so you can work towards a healthy lump sum that will benefit you in your old age.

Start to set aside a “rainy day fund”

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Source: Unsplash

Ultimately, life is for living and having fun, so it’s important that you also set aside a rainy day fund that you can build up over time and tap into to cover niceties such as holidays, meals out and any other forms of entertainment. Some people also use these funds to act as a buffer when unexpected bills arise, such as hefty car repair fees or home damages. Either way, having emergency funds that you can dip into without repercussions is a huge relief to those that have them.

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Summary
Title
5 Fail-safe Ways to Plan Financially for all of Life’s Eventualities  
Description
If you are someone that wants to be financially safe and sound through the good times and the bad in life, you’ll need to be savvy with your financial planning.

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