In 2018, Bankrate addressed common financial fears and how to overcome them. Two years later, people are still facing the possibility of a financial emergency, in addition to a pandemic. All of these things are frightening but you do not have to give in to fear.
Medical Emergencies: The article not only advises about having good health insurance, most importantly it reminds readers to be aware of their coverage. If you already know what is covered, what is not covered, and what kind of deductible you have, you will be armed with information before you need medical care. Many people recover from injury or illness only to find that treatment wasn’t covered or that they went out of network.
Job Loss: While there are sometimes signs, everyone cannot anticipate job loss. What anyone can do is be aware the one job is not guaranteed to last indefinitely. If you are able, you should set aside six months of expenses just in case you need it. If possible, you should have more than six months of expenses set aside. And if you cannot put aside even six months of expenses, put aside what you can and add to it bit by bit.
The other thing is to consider your skills and keep them refreshed. That way, you can quickly pivot into another job or take on freelance work if you can no longer count on your previous job.
Not Enough Retirement Savings: Bankrate declares, “It’s never too late to begin saving for retirement, though, even if your contributions start small.” This may seem like basic advice but it may surprise to learn that many people who think it is too late give up before they start. It is ideal to begin to save for retirement when you are young and starting to work but if you didn’t do that, it is okay. Don’t beat yourself up. Start to save so you will have something when you reach retirement age. You can reach out to a Fee-Only financial planner for help with retirement planning.
Overall, the article advises using knowledge as a weapon against fear. The more you know, the better prepared you will be to face any unexpected financial event.