"Hoping for the best, prepared for the worst, and unsurprised by anything in between."
Maya Angelou
First and foremost, a quick reminder that SH*T HAPPENS.
Not just to you, but to everyone. It happens. Just as life can be totally awesome, there are times when it can be a tad sh*t.
What has happened recently in your life when you have thought, "blimey, that’s a bit sh*t"?
How would it have felt if you were better prepared?
Whether it is an unexpected car repair, or a family emergency, or a job loss, preparing for these unexpected storms can really help you when they happen.
There are many ways to prepare, and it doesn’t have to be overly complicated, or derail your overall finances. Here are my top 5:
1. BUILD AN EMERGENCY FUND
An emergency fund is your first defence against unexpected financial emergencies.
Depending on your situation e.g. employed / self-employed, two / one earner household, dependents / no dependents … you might like work towards saving between 3 and 6 months (or more) worth of ESSENTIAL LIVING EXPENSES. Usually, that means groceries, fuel and bills.
That way, if the shit hits the fan, you are know that you are covered for a few months until you get back on your feet.
Imagine the SECURITY that brings.
2. HAVE INSURANCE
It always surprises me that so many people do not have adequate insurance in place.
Particularly as insurance is one of the best ways to SAFEGUARD against the unforeseen. For example:
Life insurance
Health insurance
Home insurance
Contents insurance
Pet insurance
Critical illness insurance
Income insurance
To name a few. There are a lot of insurances out there, and they might not all be relevant to you, but it is likely you would BENEFIT from some.
What insurances do you have in place?
3. WRITE A WILL
Do you have assets? Do you have dependents? Do you have people you would want your money to go to? Do you have people you DON’T want your money to go to? Without a Will, you have no say.
And we’re all gonna die one day.
ESTATE PLANNING not only ensures you say what you want to happen, but my goodness it greatly helps those left behind who can focus on grieving, rather than figuring out who should get your money, house or assets.
Having gone through this process myself, I can also tell you that things can sadly turn nasty after a bereavement.
A clear directive in the form of a Will is vital.
4. SET UP POTS
Ooooh much more fun (and less morbid)!
This is saving for things that either you want to happen, or might need to happen. For example, HOLIDAYS, gifts, saving for a car upgrade, or a PROPERTY deposit.
Not so much the ‘sh*t happens’ stuff.
But rather the ‘I want this sh*t to happen’ stuff.
And there are lots of banks nowadays that allow you to set up pots and to syphon off some money each month into them.
How gorgeous would it feel to have the money waiting there, ready when you need it?
5. REMEMBER THE VALUE OF MAINTENANCE
I love this one. Please remember this one.
Doing your best to look after and maintain your car, your home, and your BODY AND MIND could really help cut the cost of those financial emergencies.
And you know what they say, prevention is better than cure right?
PREVENTATIVE maintenance and care are essential for the LONGEVITY of just about everything, including ourselves!
And it can help you catch, and fix, problems early before they become emergencies.
What could you do to be more prepared?
Have a think - which of these tips do you have in place, or partly in place, or wish you had in place?
You can find COMFORT and CALM by being more prepared for the unexpected. And, it goes without saying, the emotions of unexpected events can vary from mildly annoyed to utterly devastated. You don’t want to have money worries on top.
Please share this blog with any friends or family you think might benefit from it. This is an IMPORTANT one.
And if you would like a FREE, non-obligation, 121 with Claire to chat about ways Mint Coaching can help YOU to be PREPARED, just click on the button below.