While most of us would prefer to avoid any unforeseen emergencies that can become a major upheaval to our personal and financial lives, fate isn’t always that kind. However, you can do your best to be prepared for them and put some protections and plans in place to mitigate the damage that they can cause. Here, we’ll look at some of the most common financial emergencies and what you can do to work with them.
Sudden Job Loss
There’s nothing that can interrupt your financial plans as quickly as a job loss, and it can come with a serious pit in your stomach. However, it’s important to recover your senses quickly and to have a budget in place that cuts down your extra spending as much as possible so that you can make your current money stretch as far as possible. Having an emergency fund that covers at least 3 months of essential expenses can offer you some real breathing room, so start putting that together now. Additionally, explore unemployment benefits and update your resume in advance.
Major Medical Expenses
Illness, injury, and chronic conditions can become medical emergencies that can end up costing you thousands, even if you already have insurance. It’s important to protect yourself by checking your health insurance coverage annually, and consider opting for policies that have lower deductibles, even if it means paying a larger premium. Be sure to pay close attention to your medical bills so that you can negotiate them if you think that they’re getting inflated. If your bills start piling up, it’s important to get in touch with your providers to establish a payment plan rather than falling deeper into debt.
Accidents And Injuries
Medical emergencies can often be tied to workplace or road accidents that can have a whole range of costs. Time off work, vehicle repairs, and steep medical bills can all rock your finances at once. Having good insurance is important, but if an accident isn’t your fault, it’s important to have a team of experienced personal injury attorneys at your side. They could help you secure compensation for lost wages, medical costs, and long-term care, ensuring that you don’t fall deeper into financial distress. Be sure to keep thorough records of any accident or injury in case you end up needing to make a legal case.
Home Emergencies
Roof leaks, broken water heaters, or HVAC failures never happen at a convenient time, and they’re usually rather expensive. Set aside home maintenance savings and perform regular inspections to catch issues early. Consider a home warranty if your property is older or you can’t afford large repairs. Prioritize urgent fixes that can cause further damage or health risks. You need to make sure that your home insurance covers the damage likely to affect you. If you’re in an area that frequently sees storms, for instance, then storm coverage should be treated as mandatory.
You may not be able to control or prevent the unforeseen, but you can make sure that you’re in a good position to weather them as best as possible with the tips above.