You might think that your financial situation is quite secure. Perhaps you have a well-paid job, and maybe, if you’re sensible, you even have some money tucked away in savings. But nothing in this life can ever be certain, and there are a number of problems that can develop and will take you through the ringer financially. This doesn’t just mean that you won’t be able to afford life’s little luxuries. You might not even be able to afford a basic quality of life. That’s why you need to watch out for the problems that can hurt your finances and drain your bank account.
This is particularly important if there are people in your life who rely on you such as your children and your family. The good news is that if you know what can hurt your bank account, you can plan for the issues and may even, get ahead of them, so they never affect you in the first place. Let’s start by thinking about something that plagues the majority of the population.
Dealing With Debt Before It Strikes
Recently, there was a story about a woman crying on the phone about the cost of her student loans and her fear that she would sink into debt. The woman was on a train, and after falling asleep, she awoke to a startling discovery. A stranger had slipped one hundred pounds under her napkin and a note that wished her well. Unfortunately, when you get into debt, you probably won’t be able to count on the kindness of strangers. The only person that you’ll be able to count on will be yourself.
So, what can you do to keep your finances healthy and make sure that you don’t end up in debt? Well, first be careful what you borrow. Now borrowing is somewhat inevitable these days. There are various times when you will have to borrow in life – a student loan being only one of them. But a student loan isn’t that difficult to pay back because they typically have low levels of interest attached. Find out more about paying off student loans on ft.com/.
What you need to watch out for are loans where the interest rates are frankly massive and exceedingly difficult to pay. We’ll call these bad loans, and they are tempting because they are so easy to get hold of and can give you the money you want instantly. They can act as a gateway to a better quality of life, seemingly without consequences. If you want to go on that awesome holiday, you can or buy that fancy new car. The problem is the debt builds up and becomes unmanageable at which point you could end up in the sixty-seven percent of the population that will die in debt.
Remember, you don’t even need to take out a loan to end up in this type of trouble. All you really need to do is use your credit card one too many times. Now, you’re probably thinking, wait a minute, how do I get by without borrowing? Well, you need to learn to be frugal with your money because that way you’ll have more locked away that you can fall back on if and when you need it. Aim to save a little each month that you can spend on things you need and perhaps things you want.
Coping With A Disability
It is worth pointing out that the disabled are the group most at risk of ending up in debt. It should be easy to understand why this is. After all, when you are disabled, you have a variety of additional payments that you won’t have to typically pay. Hospital and doctors appointments are often more frequent, and if you don’t have health insurance, you’ll have to pay for these yourself.
You might also need to pay for fixes and changes to your home to make it more accessible as well as medication. Regardless of whether it is a physical or mental disability, you may need psychiatric support too. People with a physical disability often developmental issues such as depression and require this support to maintain a good quality of life, but it all costs money.
On top of this, even if you can still work you may find it more difficult to find a job with a disability due to the stigmas associated with your condition. It’s true to say that people with disabilities are constantly discriminated against, and this can mean that their incomes are often limited. There’s also the possibility that they are simply unable to work due to their condition, again limiting their income.
At this point, you’re probably already aware of these problems or feeling pretty darn lucky that you’re not disabled. However, according to insurestat.com/, the typical individual has about a 38% chance of being disabled for five years or more. That’s insanely high and five years is more than enough time for you to feel a serious strain on your finances. Handling this situation is about knowing that you won’t have to worry if you do develop a disability and you can make sure of that if you have the right insurance. The right insurance plan will make sure you get money if you can’t continue in your current line of work or even if you have to switch to a job that pays less. It is the only way to protect yourself from the impact of a disability.
Bad Buys
Last but not least we need to think about bad investments. You might think that people end up in financial trouble because they spend too much in frivolous areas but that’s not true. Some people follow the idea that you have to spend money to make money with so much heart that they invest massive amounts in areas that they hope will pay off but are always a risk.
You can avoid losing money through bad buys and investments by making sure that you are looking at all the factors carefully and making sure it’s not a larger risk than you can handle. If you do this, a bad investment won’t take down your bank account. You can learn more about choosing the right investment on moneytothemasses.com/.
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