The journey of life is no less than a thrilling roller-coaster ride where at every corner there is a steep turn waiting for us! Just like the ups and downs of a coaster ride, life tends to surprise us with unpredictable events and happenings at every milestone. While the positive happenings add a new spark to life, have you ever wondered what will happen if any of these moments turn out to be quite critical? The bitter ones can actually change the entire course of your life if no precautions are taken beforehand. Since we cannot predict the future, we should act smart and financially backup ourselves for such critical moments in advance.
Here are 5 smart ways to backup your life’s crucial moments financially:
- Invest in a home to lead a decent life
There is a huge difference between renting a house and buying a home. While a rented home is your temporary address for which you need to shell out your salary to pay the rent every month, a home of your own is an asset and life-time investment. Even if you feel that buying a home is a costly decision to make right now, a time will come when buying a home of your own will become a necessity. After all, your family needs a safe shelter to stay comfortably during the adverse phases of life. So, no matter how serious the situation is, buying a home is like taking a leap of faith. It is true that this big decision will require a huge amount of money and you might find it difficult to manage your expenses for quite some time, but this investment will pay off in the critical moments of your life. To be on the safer side, finance your home with the cheapest home loan in order to settle your finances without any stress and tension.
- Secure a car to travel comfortably throughout
You might have done many small jobs with low salary to help yourself survive somehow. But when you finally end up with your first big job, did you utilise it in the right way? While you considered saving up a good amount of money and spent the rest on your necessities, you forgot about fulfilling the secondary needs of life. Of course, a big job indicates the right time to take huge financial decisions, but you should focus on the other necessities of life as well. Buying a car is a smart decision which is exciting as well as advantageous. A car is not only an asset which you can cash out at the time of need, but it will also help you and your family commute comfortably even when you are in the odd phases of life. Though you will have to think about the monthly EMIs and car loan interest rates after buying a car, it is a good plan to invest in it when you have less financial burdens in life than compromising on it later.
- Cover yourself against health emergency
Life comes with unexpected events and illness is one of those unforeseen circumstances. You will never know what health emergency will suddenly crop up out of nowhere. You may not see it coming your way and naturally you will have no plans to combat the situation confidently. But what will happen when such an emergency actually emerges? Whatever the health emergency might be, it is definitely going to cost you huge bucks as the medical expenses in our country are really high. This is exactly when your health insurance policy will help to survive the crucial moment. When you are covered by a medical insurance, instead of worrying about high-cost medical bills, you can just focus on the treatment as all the medical expenses will be taken care of by your insurance company. Hence, this is a real smart decision to take to financially back-up the critical moments.
- Insure yourself for the safety of your family
The news of the arrival of a new member in the family is so exciting that you might tend to ignore the financial difficulties that are going to come your way. Instantly after the birth of your child, a number of new expenses will get added to your budget resulting in a surge in your earlier financial plan. Other long-term unplanned expenses such as child care costs, medical expenses of your child, school fees, and additional costs can hamper your finances completely. Above all, there are risks of uncertainties like death or serious illnesses affecting the prime earning member of the family. If you are the breadwinner of your family, your child’s future will be sabotaged if you meet with such unfortunate conditions. So, while you expect a new member in the family, you should definitely consider to buy life insurance for securing your child’s future.
- Buy a retirement plan and secure your old age
You might have spent all your life in the best way possible in comfort and luxury. But have you planned your post-retirement life well? People usually do not think beyond the retirement phase and end up being in a soup at the end. Hence, it is very important to start planning right from the early years to avoid unnecessary financial burden after retirement. If you have not yet planned for your old age, don’t delay more. Apply for a good retirement plan right now to spend your retired life in a tension-free way. Remember, the earlier you start, better will be your retired life.
Well, these were some of the major instances when we as human-beings face financial hardships in our life. If we start planning from the time we start earning and opt for the best loans and insurances, then we will definitely lead a stress-free happy life in spite of the adverse and unpredictable moments. So, be on your toes and get your life planning calendar ready right away!