Being suddenly without a steady income can be a huge shock. You have bills to pay and other expenses to take care of so that you can survive. Everyone likes to think that it’s never going to happen to them, but you never know when you might lose your job or be unable to work due to illness or injury. While you can’t predict the future, you can do some things to prepare for anything that might happen. If you’re worried about being left without a regular income at any point in the future, try these ideas to protect yourself.
Take Out Insurance for Your Income
If you find that you no longer have your income, you don’t have to be completely without money. One option that’s available is to protect your income by taking out insurance. Specialist providers like InsureSTAT can help you with disability insurance, which covers you if you can’t work due to illness or injury. You won’t get the equivalent of your full salary, but you will still get a significant portion of it, which can help you out a lot. You can also get insurance that is designed to cover your mortgage payments if you lose your job or to support you while you’re out of work for a shorter period.
Create an Emergency Plan
Do you know what you would do if you suddenly didn’t have a steady income? What would be your first steps to try and get back on your feet? Creating a plan that you can follow if the worst happens can help to reassure you that you’ll be able to survive. Taking out insurance is one way to prepare, but you can also think about a few other things. How long will you be able to survive on your savings? What steps will you take to get back to work as soon as possible? What if you can’t go back to work because you’re not well enough or jobs in your industry have dried up?
Save Your Money
Having adequate savings is essential if you don’t want to panic as soon as your income is at risk. Saving can be difficult, but having a safety net can make a huge difference. If you want to set a goal for how much you should save, try to have enough to cover your expenses for a few months. Three months is good, and six months is even better.
Create Alternative Income
If you don’t have your primary source of income, you might be able to get by with other income streams. Whether you’re able to turn your hand to a new area of work or you have passive income to fall back on, it means you won’t be left without any money. You might have further skill you can use or small business. Various investments can also help you out if you no longer have your usual income to rely on.
Not having your regular income shouldn’t leave you high and dry. If you prepare for it, it could be less of a shock if anything happens.
Featured Image by Gerd Altmann from Pixabay