Okay, so life might be all sunshine and rainbows at the moment. But what happens if disaster strikes?
Your car might break down, one of your family might be involved in an accident, and particularly if you’re living in the UK, Brexit might negatively affect your finances. Should your family find itself in a financial crisis because of these or any other reasons, then life will become more of a struggle. How will you pay the bills? How will you put food on the table? And just how will your children cope when they can’t watch Ben and Holly if you have had to cancel your Netflix subscription? Okay, we jest on that last one, but you get our point. When your financial situation is put in jeopardy, your family will suffer in varying ways.
With the above in mind then, here are just a few of the ways to protect your family from a possible financial crisis.
#1: Put more money into your emergency fund
If you don’t have an emergency fund in place, then you should get something sorted, and pronto! Whether it’s a jar on top of your kitchen cupboard or a dedicated bank account, you need that cash buffer to help you in the event of an unexpected disaster. After beginning your emergency fund, you should look for ways to add to it regularly. So, you might want to sell any household items that you no longer need, for example, as you can put the spare cash into your fund. Or you might look for ways to generate a passive income stream; putting a share of the money earned into your emergency fund rather than using every penny you accumulate to pay for some of the nicer (but not necessary) things in life.
#2: Find ways to be a frugal mummy
If you can find ways to save money on your family expenses, you might then have more money to put into your emergency fund. As examples, you might shop around comparison sites to find cheaper utility providers, use discount vouchers when you’re at the supermarket, and look for cheap things for your kids to do instead of spending a fortune when you’re trying to keep them entertained. By making frugal living a habit, not only will you have the means to save money, but you will also have the knowhow to survive should a financial crisis necessitate the need to live more simply down the line.
#3: Know who to turn to should you need help
If your car did break down, knowing a mechanic who wouldn’t rip you off would be advantageous to you. The same applies should you or any member of your family get involved in an accident, as if you knew of personal injury attorneys who offer top-notch representation, then their legal expertise would soften the financial blow should you need to take time off work or pay any expensive medical bills. So, think about your life and any potential problems that could one day scupper your finances. Then do the necessary research to find those people that you could trust to help you should the unthinkable happen. It’s better to be safe than sorry, after all!
#4: Find a way to clear your debts
Let’s be honest; none of us enjoys being in debt. However, many of us are, and not always because we have been negligent with our finances. You probably have a mortgage to pay, for example, or you might be paying off a car loan; two common expenses that affect even the most financially-savvy amongst us. Of course, you might have been more than a little foolish too, such as maxing out your credit card on items you didn’t really need, and you might now be living with the consequences. We aren’t here to judge, so no matter the reasoning behind your debts, you owe it to your family to reduce or eliminate them as soon as possible. You might want to make larger payments on your mortgage, for example, especially when you have free cash available. Or you might want to speak to a debt-relief charity if you are currently struggling to pay everything you owe. Use these tips on tackling a range of debts to give you and your family better chances of financial freedom.
#5: Find ways to make more money
We have already linked you to passive income ideas, but is there anything else you can do to boost your finances? If your job is low paid, you might want to consider a change of career, for example. You might look for ways to earn money from home, especially if you have time on your hands to generate extra income. Or how about a promotion? It might be time to speak to your boss if you know you deserve one. Research other ideas online for tips on how to give your finances a much-needed boost, and then do whatever is relevant to you, as you might then be better off in the event of a possible financial crisis.
*This is a collaborative post. For further information please refer to my disclosure page.