9 Important Financial Emergencies and How To Deal With Them
9 Important Financial Emergencies and How To Deal With Them
Personal Finance - Janice Friedman - May 23, 2019
DO YOU HAVE AN EMERGENCY FUND?
Have you ever encountered a financial emergency? What was it about, and how did you deal with it? Here, we will explore some of the most common financial emergencies and how to deal with them.
9 Important Financial Emergencies and How to Deal with Them
Have you ever been in a situation that requires you to use some finances which you had not anticipated? In life, we’re sometimes faced with sudden inevitable occurrences. Whether a sudden sickness, job loss, or sudden demise of a loved one, different financial emergences occurrences require us to dig our pockets deeper to fix them.
I’ve been using Personal Capital to plan for a financial emergency. I can use it to monitor my emergency fund and see how much cash is embedded in my net worth. Best part it’s completely free to use.
Financial freedom is all about having the flexibility to live completely free without any burden even if there is an emergency. Even if you’ve achieved financial freedom, building some sort of buffer in your financial plan for financial emergencies is important.
Before we explore more on the different types of financial emergencies and ways to deal with them, let’s look at what a financial emergency is first.
So, What are Financial Emergencies?
Financial emergencies are unexpected situations that require one to use some money that they didn’t intend. What happens when you find yourself in need of cash abruptly from an unanticipated event is what is referred to as a financial emergency.
If not resolved on time, it can pose immediate grave repercussions. These emergencies can occur at any time and in any circle of life, including at home, and work and more.
Since you can’t prevent some of these emergencies, the prudent thing to do would be to plan for them. That is, make sure that when the unexpected event occurs, you have some cash stashed somewhere to cushion you from the impact.
Although you cannot entirely plan for everything, having a fall back plan or some backup is always crucial.
List of Most Common Financial Emergencies
Here are 9 of the most severe financial emergencies you are likely to encounter.
Major Medical Emergencies
Some health or medical emergencies are beyond our control, and no matter how much we try to stay healthy and fit, they still occur. Although we all want to believe that we won’t get sick, planning for such things before they happen is the best thing to do.
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