Whether it’s an unexpected medical emergency, your car breaks down, or you accidentally break something, render it useless, and need to repair it as soon as possible, it’s good to have some sort of a backup plan that allows you to handle the problem and get back up on your feet. Today, we’re going to discuss the top 3 resources that can get you out of trouble when life just doesn’t deal you the cards you’d want:
- Your savings
Of course, you need to actually have some money put on the side for this to be counted upon, but the concept of saving money is really important; a little bit of planning things in advance can make life so much easier later on. While true that you won’t be able to amass a small fortune in a couple of days, just think about how much money you can accumulate if you don’t go overboard with your spending habits and funnel it towards your savings stash instead.
For starters, set a goal of how much you’re comfortable putting aside each month. Depending on your overall income, it could be $50, it could be $100, or any amount you see fit. But even just a $100 a month will turn into $1200 a year, a whole whopping grand. Just think about how many emergencies this could cover.
By paying a small monthly premium and opting to actively protect yourself against predetermined disasters, having the right type of insurance can effectively save you from a financial disaster. For example, some people choose to have their car insured (having a car insurance of some sort may even be legally required in certain countries), so when something happens, the insurance company jumps in and covers the repair costs without you having to worry about it.
Depending on what you’re most exposed to in your life and the risks you are taking on a regular basis, you may want to consider a specific form of insurance custom-tailored to your needs (like personal injury insurance, for example).
- Personal loans
If you simply haven’t had the time to prepare in advance and life catches you unprepared, personal loans are an option to consider. These types of loans are used for non-commercial purposes, may be unsecured, and repaid in monthly installments. However, do keep in mind they have a rather high-interest rate, which is something you need to consider before making your final decision.
When it comes to personal loans, it’s easy to get swayed into borrowing more money than you actually need, simply because most of the providers are willing to offer you lower interest rates when you borrow a large sum of money. But no matter what you do, the most important thing is making sure that you’re going to be able to pay it back when the time comes, otherwise things could end up unnecessarily complicated.
When life gets sour, don’t panic and retain a calm mind instead, even though every cell in your body wants to start screaming and throwing tantrums. By remaining calm and level-headed, you’ll find that most of the unexpected problems in life are solvable in one way or another, especially if you’ve prepared for them in advance.