We never know what life throws at us, and in moments of stress or despair, money is the last thing we want to think about. Maybe a cousin breaks a leg and has no health insurance, your car breaks down on the highway or the water heater in our house stops working in the middle of the winter. Life does not always give us a warning; therefore, it’s important to have a financial back up to use for emergencies. We’d like to share three tips on how we can prepare for life’s unexpected costs.
- Be covered and protect your beautiful life!
We should all protect our assets before we even start to think about spending the money elsewhere. We should have life insurance, health insurance and disability insurance in place. There is almost nothing more important than making sure we can always have access to healthcare for our family and ourselves. If we have children or other family depending on our support, we owe them the ability to maintain a sense of normalcy should life hit us in a drastic or unexpected way.
- Have an emergency fund in place.
We recommend the Emergency fund be 3-6 months of expenses. This way, we have access to funds should we need them on short notice.
- Talk about money with your friends and family.
Even though we have insurance and an emergency fund in place, things can sometimes happen that require us to ask others close to us for support. It’s important to have these conversations sooner rather than later. Asking our closest family for their support gives us a sense of comfort. In return we can also offer up the same support as you ask for.