On January 17, 2021, we reached a grim milestone. It was a sobering way to welcome the new year and a new presidency. The pandemic does not only remind us of our mortality. But it points out our financial vulnerability.
The nightly news highlighted despair and hunger. But at the same time, it gives us hope that we still have the chance to turn things around. Have you done something about it? We should grab the opportunity to make our lives better.
You might already have taken the step to tell those dearest and nearest of how much they mean to you. But have you done something to lessen your monetary exposure? If you have not, you should immediately board the train toward financial stability. This article does not talk about economic invisibility. But the steps enumerated should make you less vulnerable.
Emergency Funds
In September 2020, Pew Research published their study showing that 25% of the adult population felt the economic crunch. We already see some improvement, especially now that the government lifted local travel restrictions. But we heard entrepreneurs lament that operations are still below pre-pandemic levels.
With this in mind, don’t you think that you should set up an emergency fund? Think about it as your financial urgent care center. It is small. But it is integral to our well-being. Either of these two is essential in maintaining our dignity as persons.
When establishing your emergency funds, you must remember that they should be enough to cover the necessities. You should save enough money to take care of your entire household for at least a few months. Bear in mind that it should help you meet your needs for six months.
Another reminder when setting up your emergency funds is how you will save your money. It is prudent to put your savings in a regular bank account. This setup will allow you to access your reserves anytime.
Mini Jobs
Now that the government eased Covid restrictions, you should take this opportunity to make more money. The job market is just overflowing with choices. You can take up a second job to supplement your income.
You can also try your luck as a paid respondent for market research companies. It does not pay that much. But it does not require a lot of effort from you. All you need to do is to answer a few questions.
Cryptocurrency is quite trendy right now. Currently, 1 Bitcoin is equivalent to 45 thousand dollars. But it was at $52 thousand on the first week of September. Its volatility is the reason why many experts do not recommend investing in it.
In this case, why not research cryptocurrency faucets? Legitimate cryptocurrency faucets can pay you money without spending one. We advise caution when trying this scheme because there are many online scams.
Insurance
Let us venture back to traditional (and secure) financial plans. We mentioned earlier that the purpose of your emergency fund is financial protection. Let us take this concept further. It is why you should invest in insurance.
Take note that your emergency funds will only help you for a few months or a year at most. Investing in insurance will give you broader financial coverage. This protection extends to your loved ones.
When you are shopping for insurance, you should consider your current need and your budget. Let us say that you are still paying for your mortgage. In this scenario, you should consider buying a term life policy. It is considerably cheaper than other financial products.
Most people associate future financial stability with pension plans. But you should also research critical illness coverage. Most of us heavily rely on our health insurance. But they often do not cover debilitating ailments such as cancer. Investing in this type of insurance product will ensure that you or your loved ones will not be financially paralyzed because of the disease.
Lastly, let us tackle long-term disability. Although we can rely on the government’s help, financial aid is usually not enough to cover our living expenses. Investing in long-term disability insurance is a more viable option.
No one can accurately predict the future. But we can lessen the adverse effect on our economic health. We can aggressively look for ways to supplement our income. Or we can opt for wise investment plans. The latter is a more feasible option.
You do not have to prepare for your financial invisibility in the future. But you can try to make yourself less vulnerable. This arrangement is your way to protect your loved ones too.
