5 Ways to Prepare for Life’s Financial Surprises

5 Ways to Prepare for Life’s Financial Surprises 

“I’ll have it made when I have a million pesos in the bank.” Many approach life with this kind of financial goal, only to feel frustrated by all of the emergencies that eat away at this goal. 

The thing is, life will always have surprises to throw at you, whether it’s a sudden illness, unemployment on the downside, or significant milestones like getting married and having children on the upside. But surprises only happen when you’re caught unaware – they are no longer surprises when you prepare for them.  

See financial preparedness not as a one-time event, but an ongoing process. While life’s surprises can significantly impact your regular expenditures, constantly working on your financial preparedness allows you to be flexible and adapt easily when these challenges come your way. 

Here are five ways to prepare for life’s surprises: 

Have an emergency fund. Think of this as your “peace of mind” account. Just as you always make sure to have enough to pay your bills, keep this account funded regularly and consistently. This ensures you have the funds to tide you over any kind of emergency, whether it’s home or car repairs, illness, or unemployment. 

Diversify your investments. You’ve seen it happen in the movies: the main character puts their life savings into an investment, only to lose everything when the company declares bankruptcy. Let these movies be a cautionary tale against putting all of your eggs in one basket. When you allocate your money to stocks, mutual funds, and different business investments, you’re assured you won’t lose everything even if one investment doesn’t quite work out. 

Get insurance coverage. Some people think that getting life insurance is morbid, as though doing so invites misfortune. But getting insurance is all about being prepared, not just for accidents or death but for many other things. Having health insurance covers medical treatment, getting educational insurance secures your children’s education, and availing travel insurance ensures you’re compensated for any flight delays or issues during your trip. 

Reassess your financial plans. Change is the only thing that’s constant in life, so you also need to realize that your financial plans aren’t set in stone. Just think: your life as a single 20-something just entering the workplace changes drastically when you decide to start a family, work abroad, or pursue further studies in your 30s or 40s. Your financial plans should match your changing circumstances and priorities accordingly. 

Identify your lifeline. If life can change quickly for you, the same is true for the rich relatives and friends you may be hoping to rely on during emergencies. Thankfully, you can always count on Salmon Credit, a flexible loan that gives you a credit line of up to ₱50,000. You only pay interest on the amount that you use, and you don’t need to pay in full – just pay the minimum amount monthly and keep using the credit line as you need it. Best of all, you only need to apply once, and you’re assured that you have ₱50,000 on standby whenever you need it. 

Download the Salmon app on iOS and Google Play to apply and learn more here.