The truth is that you most probably work extremely hard to ensure that you are financially stable. You put in the hours at work, budget effectively, and always make sure to put a percentage of your paycheck in the bank each month, and yet in a split second your financial security could be damaged beyond recognition.
Like most of the world, you most probably rely on your income. While some people are able to afford to live off of their inheritance or savings, for the most part, society lives off of the money that they bring in each month. So the concept of losing that income is a terrifying one.
There’s a common misconception that being unable to work or your partner being unable to work due to accident or illness means that your finances will fall into a state of ruin. However, that is not necessarily true. There are steps that you can take to ensure that you cope financially after this kind of situation occurs.
Save, save, save
The reason that having savings in place is so crucial is simple: it’s so that should you not be able to continue earning like you are, you have funds to fall back on. Aim to put aside at least 15% of each month’s pay into a high-interest savings account – if you can afford to put more away than this, make sure that you do. The more money you can save, the better, as you never know what’s around the corner.
Invest in health insurance
If you don’t already have health insurance, it could be worthwhile investing in it. If you want to protect yourself and your family from financial ruin should one of you fall foul to an accident or illness, investing in health insurance could be a good step to take. This is especially true if you opt for health insurance that covers loss of earnings caused by time in hospital – this is most definitely something that it’s worth looking into.
Know your rights
It’s also crucial that you are aware of what your rights are in the case of an accident or illness occurring as a result of someone else’s negligence. Say, for instance, you’re hit while walking down the street by a car and are left with life-changing injuries, it’s important that you know what your rights are when it comes to compensation. Because compensation for accidents or illnesses that are caused by someone else’s negligence can make adjusting to life without being able to work (for a while or permanently) far easier.
The truth is that any accident or illness is going to have serious consequences on family life, but if you are smart about it, it does not necessarily have to lead to financial ruin. It’s all about how you handle the situation and what steps you choose to take – being prepared for whatever life may throw at you is also crucial. That’s why having insurance and putting money aside each month in a savings account is so vital.