If you were to lose your job tomorrow what would you do?
Would you be able to immediately find another job? Do you have enough money saved to cover your bills?
Nobody wants to think they’ll those their jobs but it’s a reality that many people are waking up to each morning. That’s why it’s so important to think ahead and make a financial emergency plan.
Start an Emergency Fund
An emergency fund is an essential element to a financial emergency plan. Really, an emergency fund should be an essential part to almost everyone’s personal finances.
There’s no right or wrong answer when it comes to how much money you need though. Some experts recommend having three months’ worth of expenses socked away for emergencies while others recommend having a years’ worth.
The amount of money you need to have saved depends on several factors, such as:
- The amount of your expenses
- Income sources
- Ability to quickly find a new job
- If you have a working spouse
Personally, I think that six months’ worth of expenses is a good amount to have saved, but what you need may differ.
Network with Others
Making meaningful connections within your chosen field of work is extremely important.
By building relationships now you’ll have people to help you out in the even that you lose your job. The network you build can also bring you new opportunities.
Take some time each week to reach out to new people and get to know them. Broaden your horizons. You never know which person will be able to help you out when you’re in a bind.
Start a Side Business
In addition, having your own side business gives you the opportunity to work on the things that matter the most to you.
And if you have your own side business you’ll have an income source to fall back on in the event of a job loss. You’ll also be presented with enough time to work on your business even more and grow your income to the next level.
You can’t predict the future. That’s why it’s so important that you make a financial emergency plan now.
By having an adequate amount of savings, strong connections, and a side business to fall back on you’ll be prepared for whatever financial situations life throws your way.
Do you have a financial emergency plan?