Normally, life is full of surprises, and we always face unprecedented events that may drain our bank accounts if not wisely handled. One day, you may have millions in your bank, while the next day, you might have nothing due to unforeseen situations. Here is a list of various situations that can leave you penniless.
1) Job Loss
Every year, many people lose jobs. In 2020, for instance, most Americans were rendered jobless due to COVID-19. When joblessness strikes, it finds most people unprepared. They use all they have and get broke within a few weeks or months. Below are three tips on how you can navigate a sudden job loss:
- Always have an emergency kitty.
- Continuously invest your earnings in other areas.
- Develop a saving culture
2) Traffic Accidents
A traffic accident comes along with hefty hospital bills. In a CNBC report, more than 137.1 million Americans faced financial hardships in 2019 due to medical costs. As medical care costs rise each day, treatment after a severe accident may leave you bankrupt. However, comprehensive medical insurance can help you handle the situation smoothly.
3) Aggravating Bank Fees
Numerous fees and unclear charges systems highly characterize the banking system today. As noted by International Finance, most banks apply unfair charges that make every-day banking extremely costly. So, you will have to endure overdraft fees and other unjustified deductions. However, some online accounts, such as Aspiration, may be of significant help since they charge nothing.
4) Sudden Death
Bankruptcy may occur in households that have one main breadwinner. In case they die, the family struggles with payment of the mortgage, school fees, and other bills. However, it is always wise to have life insurance that will sort out your family once you are gone, or you might leave them in the streets.
5) Wrong Investments
As the financial market becomes increasingly volatile, you might be a victim of an unlucky investment. Investment is risky, but that does not justify carelessness. You have to do it right, or you might lose everything you have. Instead of making investments blindly, find Wall Street alternatives such as whole life insurance. The cash value goes up over time, you are guaranteed payment upon death, and it creates a solid financial foundation for future asset building opportunities.
6) Unforeseen and Unbudgeted Expenses
You can lose property or business due to many unexpected situations. These include:
- Natural and manmade calamities
- Economic regression
It is always wise to have insurance coverage for your property or business in case unanticipated events strike.
If you are having issues with debt payment or managing your financial portfolio, please contact us. We will help you identify financial goals and recommend a plan to help you get there.