HOW TO PLAN FOR A FINANCIAL CRISIS

A sudden loss of income, an accident or dread disease could all throw you into crisis mode and ruin your finances. However, there are ways you can help cushion the blow next time there’s a financial crisis. Here are a few tips from analyst, Wendy Makhado.

BEGIN WITH A PLAN. A financial crisis can be prevented with good planning. Plan your finances now with a crisis in mind.

START SAVING AGAIN. A good plan will incorporate a savings pocket so you can save for a rainy day. Start by saving towards having an emergency bundle set aside – for example, saving six months of your salary in case something should happen. A financial crisis takes most people by surprise, but the ones who come out less scathed are the ones who had built up their savings base well before the crisis hits.

GET INSURANCE. Consider insurance products that can provide financial relief in the event of a crisis, such as life, disability. and dread-disease insurance cover.

SPEAK TO AN ADVISER. Consulting a financial adviser will help provide you with detailed options on how to access the appropriate products and advice.