In life, there are emergencies that force us to spend money to bail ourselves out. These include accidents, hospitalization due to sickness, being suddenly in debt, or becoming victims of natural calamities. That’s where a licensed money lender comes in. In Singapore, you can easily connect with a reputable lender who can give you the quick cash that you need.
The money lending industry is closely monitored by the government, so you will be well-protected in case of disputes or problems with your chosen lender. Lenders don’t need collateral to approve loan applications and loan processing is likewise quick. They will present you with different loan options with typical interest rates ranging from 1% to 4%, which is very manageable for most people.
But how do you prepare yourself for financial emergencies? Here are five tips for you:
Set aside money as an emergency fund
Life’s surprises can leave you with huge financial challenges, be it a sudden illness or losing your job. The age-old adage “Make hay while the sun shines” is something that is true today and in the future.
With this, make sure you’re setting aside a certain amount off your monthly income as an emergency fund. You can put it in a bank, place it in a safe, or explore other ways to keep it safe.
Just be sure you always have extra cash for emergencies. The more money you have saved, the better prepared you will be when sudden expenses come knocking on your door.
Get insurance for everything
While it may be quite a burden to your pockets at first, getting all types of insurance coverage will provide benefits when the funds suddenly go dry. If you can, get insurance for health, life, car, disability, and real property so that you’ll have all bases covered. You don’t have to get all of them at once, though. Just secure the ones that you think you’ll need more and that your budget permits.
Secure pertinent financial documents
Processing claims in case of death, disability, and other emergencies will be easier if you have all the necessary documents that insurance companies require. These documents would include your bank account details and the contact number of your CPA. Store them in a safe place and make sure at least one in your family knows where to find them in case the needs arise.
Live frugally as much as possible
It’s important to discipline yourself to only spend that is left after you have paid for your financial obligations and have set aside your monthly emergency fund savings. Living below your means is not easy, but it could spell the difference between having enough money to tide you over in dire times and not having a single penny to buy your medicines or settle your financial obligations.
Invest in different ways
It’s important that you invest your money in several ways to minimize potential losses and maximize possible gains. You can invest in the following:
- Stock market
- Cash bond
- Time deposit/cash savings
- Franchise/personal business
These five hacks are pretty much everything you have to do to make yourself financially prepared in case anything bad happens in the future. It is better to be ready for anything, right?