Stay secure by planning for contingencies


The only thing certain about the future is uncertainty. When you plan for your future and invest money with the hope of earning high returns, the only thing you can’t calculate is what the future holds for you. A stock market correction or a company’s bankruptcy can alter all your financial plans. You may wait all year long for the outcome of your investment but all you may get is loss and debt.

Even a natural disaster can melt the financial market and you can end up with unimaginable losses. An example of this can be seen with the 2011 quake and tsunami in Japan and the deadly floods in Thailand which disrupted trade and reflected heavy losses in the stock markets.

Need of saving

To be prepared for such events, it is always better to first secure your savings for emergencies and then invest the remaining funds. Before anything else, you must ensure that you and your family have a safe and secure future. A big illness or an accident can destroy a family’s future plans but with an emergency savings fund, you may be in a better position to safeguard yourself and your family Not only diseases but also the loss of a job can qualify as an emergency situation. During such times, a savings fund will be of great help.

The upcoming threats

According to research, India has the highest number of diabetics in the world. God forbid, if you or your loved one contracts the disease, you will need the money for treatment. This is only one example; there are several life-threatening diseases that affect families every day. Cancer is once such disease which requires heavy expenditure for treatment.   

Things that you should do

Health insurance will help you with your treatment expenses. It covers most of the ailments and expenses that you may require.

Most of the companies offer insurance covers to their employees. Ensure that you and your dependants are covered by them. You must also sign for other covers as per your requirements such as health, life, fire, theft insurance etc.

Life insurance is imperative. If something happens to you, this insurance cover will ensure that your family is financially safe. 

Set aside some savings in an emergency fund which you can withdraw at any time. You can keep aside an amount from you salary each month. This will help in a rainy day.

Once you have figured out all of this, you can go ahead with planning your investments.


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