3 Habits that Help You Prepare for Money Emergencies

No one wants to live paycheck to paycheck. This is such a stressful way to live. It definitely feels like you are hanging on a thin thread all the time. We can never be at peace because we are always questioning our capacity to buy even the most basic necessities such as food.

That is the very reason budgeting and general financial literacy needs to be taught in schools and even at home. Everyone, including youngsters who get allowance from their parents or guardians, need to know how to plan out and regulate their spending.

But, like any other plans, the number one enemy of a well-thought out budgeting scheme is the unforeseen events that we more commonly refer to as emergencies. Good thing that there are habits that you can develop to keep yourself afloat and generally unscathed even if emergencies pop up like mushrooms along your path.

Save

Truth be told, saving money should be the favorite hobby of the modern person. Savings should not just come as an afterthought. Everyone should acknowledge that in order for savings to really have an impact, a savings account must be included in the money plan right from the beginning. It shouldn’t be: “This is all I have left so this is all I will deposit in my savings account.” It should be: “I earn $5,000 dollars a month, and $250 of this automatically goes to savings!” Of course, the amount will vary depending on a person’s expenses, but the point here is clear: save before you start spending. Every person who wants to be financially free in the long run should learn how to live slightly below their income.

Get relevant insurance.

Emergencies like health issues, a car breaking down or being in a car accident are unfortunate events, but ones that we should be able to handle. We should also plan ahead, knowing that these types of emergencies can happen at any time.

Good thing you can get insurance coverage for such unfortunate incidents. For a premium, you will be able to get insurance benefits that will protect your savings through your insurance policy. But getting money you’re owed from insurers can be tricky at times. You should hire a legal professional who can provide reliable help dealing with insurance companies.

Work for fun (and cash!)

If you have time to spare during weekends or after you’re done with the day’s work, you can spend it on something that you love like baking, carpentry, or any other hobby. Aside from these being a form of recreation, they can also be a source of side income. You can definitely sell the cupcakes that you baked or the chairs and small tables that you refinished. Even if they’re sold only to friends, it’s still money that can be used to increase your savings account or save up for something you really want.

Being prepared is simply the best way to overcome anything. Yes, there are emergencies, but at least financially, you can still very much prepare for them. So drop that defeatist attitude and start building good money habits, especially the ones shared here.

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