In these turbulent times of economic instability, people all around the globe are feeling its ripple effect. For some people, a loss of income or even a pay cut can have a significant impact to their livelihood. Here are some ways for you to stay afloat if you experience an interruption or loss of income.
1. Prioritise your budget
You need to make sure that you can pay for your family’s essentials such as medication, school fees and groceries. Identify and total up all your income sources and assets such as savings that can help you survive until you secure another source of income. Take a closer look at your expenses and eliminate non-essential spend. You may be able to save money by planning meals or reducing electric and water bills. Involve your family in making decisions of where to reduce spending so everyone understands that things are difficult for now, and having the support of one another can help you get through the trying period.
Self-control and careful planning are essential when you experience a loss of income. Also keep in mind that even small expenditures can accumulate over time to be a significant cost. Cut your spending that adds up over time such as coffee and takeaways. Also think about finding options to lower interest rates and monthly payments on your debts.
2. Talk to a Financial Planner
A financial planner can help you come up with a plan if you are experiencing a temporary disruption to your income. They will be able to help you identify options that can relieve the financial stress and help you decide what to prioritise so that you can recover from it in due course.
3. Consider Life Insurance
In the midst of reviewing your expenses and keeping to a strict budget, life insurance may not feel as urgent, but you need to make sure that your family continues to be protected. Having a life insurance plan ensures that the people who are financially dependent on you have sufficient funds to provide for themselves should anything happen to you.
Most of us would like to avoid talking about one of the most difficult topics of financial management but having a life insurance gives you peace of mind as you know that your family will be provided for financially if anything were to happen to you.
Life insurance can also be used to pay off debts or fund your children’s education. This is another reason why it is a very useful tool to have in your financial plan.
Through life insurance policies designed for education planning, you will be able to set your children up for a good education and give them a head start in building their own future. Leaving a legacy for your children doesn’t always mean that you need to own property or have an elaborate trust fund, it could be as simple as securing the future of your children by making sure their higher education needs are provided for.
