4 Ways to Prepare for a Financial Emergency
No one likes to think about unexpected emergencies, but unfortunately, they are a part of life. If an emergency happened today, is your family financially prepared to withstand its effects?
As you plan for the future, here are four ways you can prepare for a financial emergency:
Grow your emergency fund. Most financial experts recommend an emergency fund of three to six months of living expenses. If this feels out of reach, put aside what you can — every dollar helps. Use this fund only for emergencies — not for spontaneous splurges.
Get life insurance. If you have a spouse, children, or any other dependents, life insurance is a must. An easy and affordable way to care for your family in the event of your passing, life insurance gives you peace of mind. Talk with one of our experienced Financial Advisors to determine which type is right for you.
Consider short-term disability insurance. More than one in four of today’s 20-year-olds will be out of work for at least a year because of a disabling condition before they reach the average retirement age. Short-term disability insurance covers you should that happen. For just a few dollars a month, you can have the coverage you need should you be unable to provide for your family due to illness or injury.
Get a handle on debt. Emergencies never ask permission before they arrive. As you evaluate your overall financial health, work to pay down your consumer debt by focusing on the highest interest rate first, leaving you adequate cash flow when life throws a curveball.
If you find the need to amend or start your financial emergency plan to prepare for the unexpected, we are here to help. Give us a call today at (269) 324.0080 and schedule your free initial consultation.