Ever since the emergence and propagation of Covid-19, there has been a significant rise in the anxiety of people. During this time of extreme uncertainty, most individuals are finding it hard to manage their financial and emotional states. When it comes to an unknown future, most of us are scared- especially in terms of our finances. In a situation such as this, people are losing their jobs without knowing if they would ever be able to reacquire it. Nobody knows what tomorrow has in store for them and how long this virus is going to stay.
If there is anything these scary times have taught us, it is to always be prepared for the unexpected. Having a fund to deal with an emergency is crucial for everyone, especially the people with compensated health conditions and have no family to assist them during the crisis.
Top 3 Ways To Stay Prepared
Canada is one of the many countries that have received a severe beating in the hands of this coronavirus, therefore, if you are a permanent Canadian resident or a travelling visitor, it is crucial for you to apply for super visa insurance Canada and look for the well-reputed companies, such as Manulife super visa medical insuranceto cover your health expenses.
Furthermore, you should start cutting your expenses from today, so you are able to assist yourself in case an unanticipated transpires tomorrow. If you have lost your job and are unable to put extra money aside, check if you are eligible for any government program, or if you qualify for any unemployment insurance.
You can also take advantage of loan deferrals, mortgage and search for other possible ways to cut your spending. The most crucial thing is to make sure you are not in any kind of debt. If you own a property that has suddenly gone down, instead of panicking, just sell it right away, unless you have a choice.
1. Protect your financial well-being through an insurance policy
The most helpful tool to prepare for unanticipated is getting insurance. Getting health insurance is most crucial, but you can also consult an expert to figure out what type of investment will suit your requirements the most. So whether it is life insurance, disability insurance or insurance of critical illness, you will be able to protect your own, as well as your family’s needs. Fortunately, critical illness insurance is also tax-free.
2. Set your emergency fund
The emergency fund is an account where you put money for absolute emergencies. So, for instance, if you have lost your job or experienced a car crash, you would be able to provide yourself with sudden and immediate financial aid. An emergency fund can also keep you away from debt and away from the situation that can make you crash your bank. Your emergency fund should at least consist of the amount worth six months of your expenses. This will allow you to keep afloat during the crises.
So start putting your money aside and little by little your fund will grow. You can deposit your money for the fund in any bank, however, make sure the money is not going in your regular account, or else you would be tempted to take extra money out. It is better to choose a bank account with high-interest rates and the one that allows easy access. This is important as you do not want to go through hurdles during a sudden financial dilemma.
Setting a goal of cash is also proved to be very helpful. There can also be unnecessary stuff lying around at your home, you can collect and sell them to get the money you could use later on.
3. Benefit from Automated investment tools
Other than having an account for an emergency fund, you can start investing your cash in various business ventures. Doing so will require you to consult a financial advisor, so they can help manage and secure your money for ‘rainy day’.
