3 Ways to Be Financially Prepared for the Unknown
In the wise words of Forrest Gump, “Life’s like a box of chocolates. You never know what you’re going to get.” While we can’t predict what life throws at us, we can work to prepare financially for whatever comes our way. We’ve compiled a few nuggets of wisdom to help you prepare for the unknown.
#1 – Save unexpected cash.
If you have a great tax year (hello, refund!) or usually get a work bonus each year, consider putting all or most of it in a savings account. Don’t fall victim to spending your money before you have it! If you’ve budgeted properly, you shouldn’t need it. And you’ll be glad you saved that unexpected cash when an unexpected expense (goodbye broken dishwasher) arises.
#2 – Use credit card perks to boost your savings.
Credit cards can be great tools to help boost your savings when used properly! Purchase your essentials (which you already buy anyway) with a rewards credit card, pay it off immediately, and watch the cash roll in.
We’ll use the BHFCU Cash Back Credit Card as an example. According to U.S. News, the average family of four spends just over $18,000 on groceries each year. With 1.5% cash back on everyday purchases, you’d send $275 directly to your savings account. Add in other essentials like gas, pet supplies, and online subscriptions, and the number just grows!
#3 – Consider life insurance.
Do you have children or assets like a home? Would your loved ones be set up financially to care for themselves if you were gone? These are important questions to consider! Life insurance can be a good way to prepare for the unexpected. Check out the first-timers perspective on life insurance from one of our staff here.