What would you do if you woke up tomorrow and found out you were no longer employed? Sadly, recent times have not only made this a nightmare for many Americans but a reality. The covid pandemic has ravaged the economy at every level, not only in the US but also worldwide.

Job roles that were once thought of as secure are no longer, and there are record numbers of people registering unemployed across the country. With each battling its own issues regarding helping Americans survive this pandemic, it begs the question. Just how secure are your finances? And if the answer is anything other than solid or secure said with absolute confidence, then you should be looking at how you can protect your wife in the event of unexpected unemployment or an inability to work due to illness or injury.

There are many different options you can invest in to make sure your assets are secured, and your family or lifestyle is protected should the worst happen.

Income Protection

We insure so many parts of our lives. However, have you ever considered insuring your income? With the vast majority of adults thought to be just one paycheck away from financial ruin, it isn’t worth thinking about what would happen to you should you be involved in an accident or become too ill to work.

We are all familiar with being able to claim compensation should we be in an accident to help us recoup our losses like a Corpus Christi car accident attorney can help you out with, but what if you fall ill or have an accident at work that leaves you unable to go back to work for long periods of time.

Income protection insurances can help you cover any loss of income in circumstances such as these. For s monthly payment, you choose the level of cover you require to help cover lost wages and be able to pay your bills and keep a roof over your head. The unexpected issue is that you can never really know if or when something will throw your life into turmoil. Planning for this eventuality can take a weight off your mind should you find yourself in this position. Remember, you need to thoroughly check exactly what you are covered for and any specific circumstances that aren’t included. The level of cover being offered is suitable for your needs.

Savings

Not everyone can afford to have a savings account. With finances stretched tightly across many households, having a savings account seems like a luxury you can ill afford to start up. If you find yourself struggling financially, then having a lump sum to fall back on can be a lifesaver.

Try to get yourself into the habit of saving a nominal amount each month. If you find you are dipping into your fund regularly, reduce how much you save to an amount you can realistically afford to be without. Be it $5 or $10 a month. The sum will grow over time, and something in a savings account is better than $0 if the worst does happen.
It may be worth taking stock of your financial health and seeing what savings you can make on your outgoings to allow you to begin saving money. Create a budget and be strict with sticking to it to help you trim unnecessary spending.

Create a Side Hustle

If 2020 taught us anything, it is that anything can literally happen. No one could have predicted 2020 would see us living a life akin to something you would see in the movies, Contagion with Matt Damon and Gywneth Paltrow being one such film.

It also showed us that relying on one income stream alone is an outdated habit that really needs to be evaluated. Creating a new income source can help you support your finances or help you save for a rainy day. The most successful side hustles are those that know how to take it steady and build on something they already love to do or have a particular skill set for.

Think of blogging as a way to dip your toes into the world of freelance writing, photography, sponsored brand collaborations or even becoming a published author. If you work in administration, how about evolving your skills to become a VA in your spare time? The list of potential side hustles is endless but remember, it will take up more of your time, especially in the first stages of getting set up. Look closely at your schedule and existing commitments to see what time you realistically have and can afford to dedicate to a new side hustle. Then look at what you have to offer to turn it into an income source for your family.

There are plenty of side hustles that you can choose from these days including incorporating your hobbies into paid activities. For instance, if you really enjoy photography then you could offer your services for weddings or photoshoots. People are calling out for photographers these days, since there has been a backlog of events since the start of the Covid pandemic. Another great side hustle is selling goods online. This has been becoming an ever growing business idea since the start and success of Amazon. Jeff Bezos’s net worth is now around the $130 Billion mark and this is simply due to Amazon doing so well. You could become the next Jeff.

Reduce Your Borrowing

If you are concerned that you could lose your main income source, now is the ideal time to perform a financial health check. Look at what debt you owe and how much you are paying out. Then set realistic goals to help you clear those debts or reduce them to more manageable levels.

Stop spending on credit cards and look to balance your debt evenly at a more manageable level. While it isn’t always in your best interest to close a credit card – in some cases, this could do more harm than good; it is always worth running through your finances and looking at better ways to manage your debt and pay back what you owe.

In conclusion, being able to organise your finances and make sure you are in a good place financially and not living above your means will help you assess exactly what would happen if you lose your job or be unable to work. Reducing that damage before the worst happens will make sure you are protected despite a change in circumstances. And no one wants the worst to happen especially in the current economic climate!