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How to Prepare for Personal Financial Disaster

by / 0 Comments / 12/05/2017

In today’s unstable economy where casual work is more prominent and people are less likely to have their jobs for life, the way they once did, personal financial disaster is something that keeps many of us awake at night. Rather than worrying however, all you can do is be as prepared as possible, so should this happen to you, you’ll be ready to respond in the best way that you can. Let’s take a look at some of the top ways then in which you can prepare for personal financial disaster.

 

Make a Backup Plan

Start off by writing down all your earnings and outgoings so you have a clearer picture of exactly where your money is going every month. There is plenty of money-saving advice online, so if you are able to make some cuts and channel this money into a savings account or ISA, you will have a backup fund. Think about the possible situations that could arise to cut off your means of income. Though losing your job is the most common, you may also end up suffering an injury that could prevent you from working, in which case knowing someone to contact like Quittance can give you peace of mind. Ultimately, the more prepared you are for financial disaster, the better you will be able to respond.

Work on Alternative Income Streams

The internet has provided plenty of opportunities to make money online, so making some extra cash on the side is much easier than it once was. There are plenty of opportunities to make money through the sharing economy, whether this is by renting out a room, a driveway or storage space, selling extra items you have lying around or offering your services to other people. There are plenty of online platforms for you to take part in some casual work like writing, design, translation, web development or proofreading, so it is worth exploring these options to ensure you have a secondary means of generating income in place.

Widen Your Social Network

Obviously, you will be in a much better position if you have people who are able to provide you with direct financial support if you are in dire straits. But the more people you know, the more likely it is that you will be able to find a new job opening should you lose what you have currently. Try to always network with people who are in your particular field so you are better able to access the kinds of positions that suit you.

Always Learn New Skills

The more skills that you are able to offer to employers, the easier it will be for you to find job openings. As we have already talked about, if you have certain technical or creative skills, then you can offer these online as a backup. If nothing else, learning new skills makes you more rounded as a human being, and you may even be able to teach others at some later point in life.