The thought of emergencies is something we always have in the back of our minds. This is especially true when you’ve got a family to look after – if something gets in the way of looking after them, what will happen next? And that’s why being prepared is essential, and often the best way you can do that is keeping your financial health in mind. It’s why things like a ‘sinking fund’ come in so handy; having a pot to dip into just in case will always take you further. But we can do even more here, so check out the tips below.
Always Have Something to Save
Saving needs to be a consistent habit. So no matter what money you’ve got left over, put some of it away. Even if it’s just a tenner after a long week, or a couple of pounds at the end of the month, it’ll help bulk out the fund you’re building. You’ll notice a real difference in 6 to 12 months and thank yourself for it.
Think About Insurance
Insurance does a lot to help you recover after a disaster, both in terms of floods and fires as well as break-ins and robberies. Sign the dotted line on a comprehensive policy that’ll pay back at least half of the value of your home’s contents and you can rest much easier knowing you’re covered. Of course, not all insurance policies are good (and some are even unnecessary), so do plenty of your own research here. Insurance should always be taken seriously, and you need just the right package for you.
Focus on Your Credit Score
Your credit score is an indicator of how reliable you are with money. And a good score will guarantee a short term loan your way if something happens to your cash. Whether you have to spend it all in one go because of a disaster or you lose a portion to scammers, your credit score will ensure you can apply for financial aid as soon as possible. Check your current score, make sure all debt is off your credit record, and spend small on your credit card for a boost here and there.
Plan for the Future From Day One
The more you prepare now, the easier the future will be. No matter how old or young you are, right now is the best time to be thinking about things like prepaid funeral plans, retirement funds, and how you’re going to put your family through higher education. You’ve got plenty of time to build up these funds, but you never know when an emergency might take that choice from you. So get started right now; sit down and think about what’s likely to happen, and what you can do to temper the waters.
Your finances will be your number one resource when you’re trying to tackle an emergency. Get yours in order before you do anything else; an emergency fund will go a very long way.