Preparing for a financial emergency is often something difficult to do˳ Many people simply do not even think about what could happen since they are living day by day just trying to make it˳ Having an emergency plan, though, will help to prevent trouble when something does happen˳ An emergency situation can cause major trouble when you do not have the finances to handle it˳
Few of us think about what would happen if we lost our jobs or suddenly became too ill to work˳ The thought is simply too terrible to contemplate in many cases, especially if we are living paycheck to paycheck with a job as it is˳
The fact is, though, that financial emergencies happen to almost everyone at some point and they can have devastating impact in your credit˳ In fact, most people who declare bankruptcy do so because of a huge financial disaster such as sudden unemployment, huge medical bills, a lawsuit, or divorce˳ Despite this, few people plan for these problems, even though they can happen to anyone˳
If you want to keep your credit score in good trim, you should know exactly what you would do in case of an emergency˳ Developing an actual written plan can help you by letting you take action to save your credit as soon as an emergency occurs˳ Some items that could be on your financial emergency plan could include:
1) A list of all assets you could liquidate if you had to˳
2) A list of all extras or luxuries you could cut out of your life right away if there was a problem (i˳e˳ newspaper subscriptions, cable television, water delivery service, Friday nights at the movies)˳
3) A list of any resources you have that could help you in case of an emergency˳ Maybe you know a lawyer who deals in financial facets of the law˳ Maybe you have insurance that could help you˳ Maybe your employer offers a severance package˳ Whatever it is, write it down˳ Keeping a list of these resources will make them easier to access in case of an emergency˳
4) Other ways you could get money if you had to – jobs you could take, things you could rent out to others˳
The bottom line is make a plan˳ You need something in place so that when disaster strikes you can handle it without falling into a financial crisis˳ You will be stressed enough worrying about the emergency situation that finances do not need to drag you down too˳
Source by https://ezinearticles˳com/?Personal-Finance-Tips—Prepare-For-Financial-Emergencies&id=1673147
