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Protecting Yourself For the Worst Financially

  • March 12, 2020

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Protecting Yourself For the Worst Financially

Financial disasters are never enjoyable. Whether it’s as simple as losing your wallet when shopping for gifts or experiencing something much worse, it can make you feel vulnerable, especially if you don’t have a decent number of savings stored away. 

This is why it’s vital that you prepare and protect yourself from disaster before this disaster occurs. This can include everything from insurance to rainy day funds to being cautious with your identity. Being financially stable isn’t just about having a consistent income and a budget; you also need to be ready for when things take a sudden and unexpected turn. 

Insurance

Life insurance, travel insurance, home insurance, and even vision insurance are all policies you can look into to protect your assets in the event of a disaster, whether a human-made disaster or something else. 

Related to protecting yourself from the worst financially:

Many people avoid insurance because they don’t want to pay a monthly fee to maintain it. However, as you never know what could happen, this small fee could help you out should you need it later on. Even if you never need to claim on insurance (and hopefully you don’t), it can still provide peace of mind. 

If possible, you can look into an insurance policy with your bank. Some financial institutions will offer insurance with a credit card. It will likely still come with a fee, but it’s one that saves you a lot of hassle searching for an independent insurance company. 

Rainy Day Funds

Considering 58% of young Americans do not have more than $5000 in their savings account, this has the potential to put a lot of -people into a financial struggle should they find themselves encountering an unexpected bill. 

These bills could be a medical bill, a car repair bill, or an appliance bill, among others, and while you may think you are okay with having ‘enough’ in your bank account, this is not the case.

A rainy day fund is something you should pay into regularly. It may take a long time to grow, but it will help provide a small buffer should you experience something unexpected. With this, you can ease any financial stress and reduce reliance on loans and borrowing. 

Be Cautious With Your Identity

While the internet has brought with it unrivaled convenience, it has also increased the potential for identity theft. Because of this, you must do what you can to keep your information and data safe online. 

You can do this by ensuring you never save online banking passwords or codes on shared computers, or even your own. You can also take steps to use the browsers that protect your information through encryption to minimize the risk of hackers. 

In the event of identity theft, banks should reimburse you for any money lost. However, it’s still an inconvenient experience that you’d rather avoid. The first line of defense against this is to be cautious when working with your finances online. 

Being Prepared

Some people believe that ‘being prepared’ is the same as expecting the worst. However, this isn’t the case. When it comes to your finances, there is no such thing as being too prepared, so keep this in mind when managing your money. 

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