Weathering Financial Crisis

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Life is full of ups and downs. That is why we should always be prepared for the unexpected things that may happen in our lives such as our house being devastated by a natural disaster, which is not entirely unthinkable nowadays because of unpredictable weather conditions, getting fired, and having a sick loved one. It will definitely be less stressful if we are able to explore our options before an intense difficulty comes our way. Learning how to manage and cope with our finances during these hard times is very important and with careful planning, we can lessen the effect of unexpected financial hardships.

People often ask themselves the question how to weather a financial apocalypse. Any person with assets should make a file of all his/her financial information and keep the data in a safe, easily accessible place. This includes identity documents, financial documents, insurance documents, and estate planning documents. It is also a must to save for emergencies. Always set three to six months of money aside in an emergency fund. For those who have more stable jobs, set aside six months. Actually, the true amount you need in savings is the funds you would need if you lost your job until you could get back to work again. So for instance you become disabled and have disability insurance that kicks in six months, you need six months of living expenses in emergency funds.

Furthermore, it is important to have an action plan in place if ever you become disabled, die after surgery, treatment, or accident. Always check your insurance coverage and determine out-of-pocket costs for surgery or treatment. Also check your disability coverage and be sure that you are current on premiums for disability, health, life and long term care coverage.

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