Practical financial preparation for life’s unpredictabilities
The current worldwide environment reminds us that life can change unexpectedly. Getting ready for those modifications is not just wise– it’s needed. Here are some crucial monetary actions to take now while you still have the time and presence of mind to do so thoughtfully.
Since health threats can emerge at any time, it’s essential to gather your important financial files– such as insurance coverage, stock certificates, mutual fund accreditations, and land titles– into one secured area. Keep digital copies backed up on the cloud. This makes it simpler for your next of kin to procedure insurance coverage claims or manage estate matters in case something happens. Communicate where and how to access these files to a trusted family member to avoid confusion throughout difficult times.
While organizing your documents, review your life and health insurance policies. What is the current value of your death benefit? Will it be enough to cover your household’s needs? You can estimate this by dividing your policy’s coverage by your family’s monthly costs. You might require to update your strategy or purchase extra insurance coverage if the benefit won’t last long enough. An expert financial organizer can help you determine any protection gaps and identify suitable solutions within your budget.
Leaving your household financially unprepared amidst an unstable economy would be a great disservice. Now is the time to ensure they have enough.
Illness or incapacity can strike suddenly. It’s important to reveal your preferences to your partner or trusted individuals about your treatment, funeral plans, and other personal decisions– such as the type of wake or who should officiate.
If you have children, plan ahead. What happens if both parents are gone? Identify who will take custody, how insurance proceeds will be managed, and what plans ought to be made. Clearly communicating this reduces tension and prevents conflict during a currently tough time.
In the case of serious illness or coma, who decides whether to continue life assistance? That burden frequently falls on grieving loved ones. By preparing a sophisticated medical directive or living will, you define your choices ahead of time. This gets rid of the emotional pressure from your family and ensures your options are honored. It secures your self-respect while offering your family peace of mind.
Many individuals have found themselves with lower expenditures from reduced travel, eating out, or entertainment. Use that extra money to develop or grow an emergency fund. Having three to six months’ worth of costs in savings gives you a safety net. In these unstable times, saving a lot more is recommended. Keep this fund in conservative, liquid instruments like savings accounts or cash market funds for accessibility and capital protection.
Lastly, consider developing multiple income streams. Not just can this supplement your savings, it can also soften the blow if you lose your primary job. Offer your skills, explore online freelance work, or generate income from hobbies like cooking or crafting. Sign up with local networks or digital markets to promote your offerings securely and conveniently.
While we hope for the best, we need to get ready for the worst. Enhance your body and mind. Organize your finances. Communicate your wishes. Develop your emergency fund and income sources. In uncertain times, preparation is the most effective defense– for yourself and for those you love.
Rienzie Biolena is an authorized financial planner of RFP Philippines. For more information about financial planning, go to the 112th RFP Program this July 2025. Please email [email protected] for more information.
