Have you had some close calls with a job loss or relationship breakup? The result can be a devastating blow to your finances. Anything can pop up, and leave you with the difficulty of trying to put the pieces back together. If you’ve suffered from a loss of income or cash flow, being prepared for the event can give you the right survival skills to get by until you can find a new job or a way to repair your financial situation. Here are just a few tips on getting set up for the possibility of a financial disaster before it occurs.
Have Your Assets Appraised
Do you have a lot of classic cars or a vacation home that you barely use? While they may be some of the last things that you want to part with, they may be able to save you from financial ruin during a tough time. If you suddenly find yourself out of work due to an auto accident, contact car accident lawyers until you find a reputable one. Choose one that will be able to help you get in touch with someone who can appraise your valuables and offer you advice on possibly pursuing legal action against the party that caused your injury.
Keep Your Credit In Tip Top Shape
Is there a possibility that you might lose your job or be demoted at work? The pay cut can be devastating to your lifestyle. While you may have unemployment and be able to cash out some work-related stock or retirement funds, you’ll need to think beyond that. One of the best things you can do right now is to keep your credit in the best shape possible. This means taking a good look at your FICO score and credit report and asking yourself:
- *Are you making all of your payments on time? If not, be sure they get paid before the due date. This includes your utilities too—these payments are often noted on your credit report.
- *Do you have outstanding or overdue accounts? Be sure to pay them off as soon as possible. Items that go into collection can be derogatory on your credit report.
- *Too many open credit card accounts? Try to get these paid off when you can. This will increase your debt-to-income ratio, making it more difficult to get a line of credit.
Having good to excellent credit is essential when you suffer a financial loss. Being able to borrow money temporarily is important in order to sustain yourself financially until you can get back to work.
Secure A Savings Account
Now is the time, before a financial burden occurs, to set up some sort of savings account. If you or your spouse is experiencing lack of cash flow, you’ll have to rely on your savings. An IRA or individual retirement account will give you some gain in order to get ahead with medical bills, overdue mortgage payments and car notes. CD’s and money market accounts are other types of accounts that also may be beneficial to start investing and saving in right away.
Get The Right Insurance
It’s never too late to have the right insurance for you and your family. Should anything happen to you or a spouse, no one wants to be financially strapped for paying for final expenses. If your spouse relies on your income to sustain the homestead, be sure to consider giving them enough in the policy to live off of for at least three months. Between life insurance and short-term disability insurance, talk to your insurance agent about the best policy for your financial needs.
Unexpected financial fails are a part of life. Tackling them by being prepared is the best way to keep things sailing along smoothly.
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