Money may not be everything, but your financial health is as important as your physical health. Your financial health can affect your satisfaction and happiness. It can also give you peace of mind if you have laid the foundation for a secure future through smart financial investments.
Your financial health refers to your capability to meet your needs. It also covers how ready you are to face unforeseen and costly emergencies.
Poor financial health, such as having no savings at all, can affect your mental and physical well-being. It can lead to financial stress. Living paycheck to paycheck, like 78% of American workers, puts you and your dependents at great risk. This means that you cannot survive if you suddenly get laid off from your current job.
The economic crisis that the coronavirus pandemic brought into the world has made it clearer that people should invest in their financial health and future. The future is never guaranteed, and it is up to you to secure yourself and your family.
Save for Your Emergency Fund.
No one can predict emergencies. From a sudden illness, a car or a house repair, to a job loss you’re not expecting, it pays to be financially prepared. If you are not prepared for an emergency, you are in for a serious financial fallout. You may end up making costly loans to get you and your family through a tight spot. If you are not prepared, you will have to deal with two things: your problem and where to get the money to solve your problem. Imagine losing your job because of the coronavirus, with no one hiring new employees. Without an emergency fund, you and your family would likely suffer.
Save at least 6 months of your monthly expenses. Do not invest it in stocks or investment vehicles that are volatile and risky. It is best to have your emergency fund in a savings account that you can immediately withdraw in times of emergencies. Sudden problems will not be so disruptive and much of a headache if you have an emergency fund to provide you with some financial cushion.
Get Your Own Private Health Insurance.
Health is wealth. Many people, however, especially those who are young, think that health insurance is not important. Blame it on positive thinking, but people think that nothing bad will happen to them. Many are satisfied with the basic health cover that their companies provide. What people forget is that healthcare is expensive. Three days spent in a hospital can leave you with hundreds of dollars of payables.
If you are self-employed or have part-time jobs, it is even more important to invest in your own health insurance. Even if you have a corporate health insurance plan from your employer, you may want to review your insurance coverage. Identify the coverage that you lack and need, and get it from an individual health insurance plan. You may want to check with your company’s insurance provider, so you won’t need to undergo rigorous checks before getting your application approved.
Apply for a Total and Permanent Disability Insurance.
Accidents can happen anytime. You will never know if you are still physically able five to ten years from now. A total and permanent disability insurance policy give you coverage when you are no longer fit to work due to injuries. It can involve a loss of a limb or injuries that prevent you from working in the same way as before. You can also process for a Social Security Disability application if you have paid your Social Security taxes and have worked for a sufficient duration. Being ready for this situation gives you and your family financial security.
Start With Your Retirement Planning.
If there is one thing that you should not put off, it is investing in your future. Your retirement may seem so far off in the future right now, but sooner than you can imagine, you will suddenly be just years from retirement. Then you will start to think, “Did I save enough for my retirement? Can I still maintain my lifestyle after I retire?”
Retirement planning is important to ensure that you have a secure and comfortable retirement ahead of you. Think of how you want to live the rest of your years. What are your retirement goals? How much do you think you’ll need monthly to have a comfortable retirement? You must also consider the age you want to retire and the time frame that you have left. The longer the time frame that you have, the higher the risk that you can safely tolerate. You can invest in the stock market, where the returns and the risks are high.
The shorter your time left before you retire, the more you should focus on preserving your capital. Invest your money in less volatile vehicles such as bonds and securities.
Taking care of your financial health is your job and your responsibility. It is your responsibility to your children and your dependents to secure their future in this uncertain climate.