Instability: How to Be Prepared

We live in a time where nearly anything around us can change in an instant. Financial markets, professional demand, technology, social standards, and political climates are in almost constant flux. In other words, stability and reliability are the exception. Meanwhile, unplanned and uncertain circumstances are to be expected.

Although many large-scale factors are out of our control, we do not have to face the increasingly unstable world unprepared. We can avoid the financial, physical, and emotional strain of unexpected change by:

Creating an Emergency Fund: Even a small nest egg, dedicated to necessary, sudden expenses, can make a major difference. Costly car repair, plumbing work, a raise in rent, sickness, and other unforeseen fees and bills can easily impact both your financial and daily life if you do not have room in your budget to pay for them. If you have to go into debt to cover these costs, you face the increased burden of interest. Initially, set a goal of saving enough to cover one month’s worth of living expenses. Next, to create a stronger foundation, aim to save enough to cover two and then three months’ unemployment.

Try Something New: Consider adding another income source to your plate. More and more people are incorporating a second career into their lives. In addition to the financial security that comes with more income, second careers are an opportunity to explore your passions and expand your skillset. A second career can even eventually grow into your primary source of income!

Save for the Long-Term: Set savings goals and stick to them. If you save regularly for the future, you increase the likelihood that you will someday be able to relax in your own home, or retire from work, on your terms.

Save Early and Often: Push yourself to save whenever possible. Live with a future-oriented mindset by only making necessary purchases and focusing on your savings goals. In order to make saving easier, set up automatic transfers with your bank into your savings account.

Spend and save mindfully to create a financial safety net. If you are interested in learning more ways to prepare for nearly any situation, visit the Syncis blog at www.syncis.com/blog.