A financial crisis can take on many forms and unfortunately they have a tendency to arrive without any warning! Do you have any funds available to enable you to survive financially if a crisis occurs?
Financial disasters may arrive in the form of redundancy, illness, sickness or a crisis that could occur when your car breaks down, the roof starts to leak or business goes under. Unfortunately, when money is tight it is still essential to meet mortgage payments and daily living costs. Thankfully a little preparation and saving now will cushion the effect of the crisis on your family.
It’s all well and good saying that to avoid a financial crisis it is important to build up an emergency fund, but what happens when you don’t have much money to start with?
Hopefully, the following tips will help.
It is surprising how many of us have no idea exactly how we spend our money each month. It is important to get a handle on your expenditure by writing down all essential outgoings. You may then be surprised to see how much your non-essential expenditure amounts to! That coffee on the way to work, buying a sandwich instead of taking a packed lunch and the daily paper you buy to read on the train all mounts up.
Many of us bury our heads in the sand when it comes to money. It is essential that your bank account and credit score remains in good health. A poor credit score can affect future loan and mortgage applications. It is possible to dispute Equifax credit reports in order to repair your credit score, be sure to take advice.
Once you have discovered where you can make expenditure savings get into the habit of putting aside a percentage of your salary every month into an emergency fund. Your fund will soon start to mount up.
Are you getting the best deal?
We are often guilty of signing up to direct debits and leaving them to run on for years and years! It may be the case that you are not getting the best possible deal from your current utilities providers.
For example, if you reside in the state of Connecticut and are dissatisfied with your current electric service, you should consider switching providers. You can use energy comparison websites to compare the electricity rates in Connecticut and choose the plan that fits your preferences. To compare electric rates in CT, click here.
It’s always important to remember that “loyalty” to providers is rarely rewarded, so for your other utility providers, check out mobile phone tariffs and TV network prices.
Companies are keen to keep your custom and will usually be obliging and offer lower rates. Insurance companies are notorious for increasing premiums on an annual basis, it is, therefore, worth looking for a better deal when your renewal is due if your current provider can’t match the quote you’ve been given then take your custom elsewhere.
Having an emergency fund will cushion any potential future financial disasters. It could be tempting to dip into the fund, but try to resist as you never know what’s around the corner.
So do you think you could survive a financial crisis?