People of all kinds, across the board, are more or less similar in most ways. They are born to families and they are loved and looked after by others and then they grow up and have their own families. Now they become the providers and look after their loved ones. They not only provide for the basic needs but also look after other needs which may or may not be necessary. They may do it out of compulsion or love or a sense of duty.
There are times when, in spite of all the good intentions, things get financially difficult. Some of this could be because of bad planning and poor judgment. Unfortunately, there are things which are not in our control and these can derail our financial planning. If we are not careful these problems can cause great difficulties for us and sometimes even land us in a debt trap.
There are some emergencies which are totally unexpected. Suppose the roof starts leaking and you realize that it needs extensive work done. If you are in an accident and your car is damaged badly. If you find out that it is not completely covered under insurance. Even worse would be if you get seriously injured and need hospitalization. Then, there are natural calamities which cannot be avoided. There are many people who have faced a lot of financial problems because of a forest fire or floods. These are beyond our control and cannot be controlled. But there are some things that you can do to ensure a smooth life. If you want details, you can see it here.
1. Insurance is a funny thing. It can seem like a waste of money to you initially. When you need it, it becomes the most valuable thing. When you are unwell, money is the last thing you want to think about.
2.Another thing you should avoid is trying to keep up with the people around you. Social media makes people compare their lives with their friends and it is easy to fall in this trap. Don’t keep acquiring things just because others have them. You can soon land in a disastrous situation.
3.Bad habits like gambling, drinking, smoking are always only a step away from financial troubles. It is true that you can be only prepared to a certain extent. Beyond that, it is not possible to plan for all kinds of emergencies.
It is better to have an emergency fund which you need to continuously top up. As long as you are aware and have a plan for tackling the emergencies of life, you can be secure financially.