They say you can’t predict the unpredictable. Unfortunately, life’s biggest changes – like job loss, injury or sickness – often come without warning. But even a small cushion of savings can soften the blow of an unplanned expense. Additionally, keeping up smart financial habits (even in a crisis situation) can keep you tracking toward your long-term goals, like owning a home or saving for retirement.
Build up a financial survival kit with these essentials:
1. Savings Security Blanket
It’s good practice to have about three months’ salary saved up for a crisis like an unexpected job loss. But three months’ salary won’t just appear overnight – it takes time, and that’s OK. Start budgeting and put a small percentage of your monthly paycheck into your savings until you hit your target. (Pro Tip: Set up automatic contributions, and you’ll never know the difference.)
2. Retirement Roadmap
Retirement may feel a long way off, but the key to financial freedom in retirement is saving a small amount over a longer period of time. Enroll in a 401(k) plan, either independently or through an employer, as soon as possible. This way, you’re automatically be setting aside money for future you. There are also opportunities to grow your 401(k). For example, talk to your employer about matching your contributions. Some employers incentivize saving for retirement by matching your contributions up to a certain percent. That means more money for you when you need it later.
3. Financial Fuel
Smart investments can fuel your financial success. Take the leap on a bigger expense, like getting a degree or buying a home, with a loan from Summit. Student loans can cover a range of expenses small and large: from books to an entire year’s tuition. As for mortgages, there are fixed-rate and adjustable-rate options, so you can pay for your home at a pace that’s comfortable for you.
4. A Friend for the End of the World
That’s us. Remember, no matter the challenge, you’re never alone in your endeavor. Summit Financial Advisors are a great resource when planning for the unknown. Get personalized guidance during all life’s ups and downs, whether you’re stepping in the door for the first time or you’re already a loyal member.
You never know what might happen along the way, but you can feel better knowing you have a plan in place and a financial partner who can guide you. So go ahead, predict the unpredictable.