Medical emergencies can be costly and youngsters are the most unprepared for facing one. Manage your emergencies well by being prepared in advance.
Health is the greatest Wealth that one can have throughout their life. In a world where everything moves fast, maintaining pace is challenging. Anything unexpected can happen to anyone at any time. Medical emergencies can be the villain of your financial stability if met without a plan.
Most youngsters often disregard the importance of being prepared to face emergencies, especially from a financial perspective. As we grow older, with age and experience things may be different. But, it is important that a Plan A is kept in hand when we are young and still earning. This article guides you through the importance of being financially prepared and independent, and shares some tips on doing so.
Unplanned Medical Emergencies
You may have started with your first job and in a few days, the first pay cheque will be in! That sounds perfect for kickstarting your career. Your bucket list can be checked off one by one- weekend parties with besties, occasional trips with family, trying out gastronomic delights, topping up your wardrobe collection, downpayment for your dream car. The list may get long. Now, what happens if something unfortunate pops up? A tragic event, like an accident, or a frequent headache that troubles you at work? It is all counted as ‘Unplanned’ expenses in your financials.
These unplanned expenses may happen at any point of time in one’s life. Being prepared to face the situation is important as it may otherwise drain not only your financial resources, but also your precious time. Financial discipline can be made a habit from a young age. It is a great idea to start small and build an emergency fund towards this purpose from the very first pay cheque itself.
5 Step Guide
Emergencies can be for your immediate family members or for you. Healthcare related emergencies have to be kept as priority. A step by step guide can help to build your emergency fund.
- Monthly Instalments to Savings Account
A proven strategy is to allocate a small amount as a monthly instalment to your savings bank account. You can increase the instalment amount by 10 to 15 percent every year or as and when your income grows. Interest accrued can be left unused for compounding benefits.
- Keep a Deadline
Keep in mind a deadline, say for instance one year from the date of starting savings. Check the account balance at that time and transfer half of the amount to a better-yielding savings scheme. The rule of thumb is to keep a minimum 6 months instalment ready to be used at any given time.
- Channel Additional Funds
A portion of your additional income every month or occasionally can be allocated for the emergency fund. Part-time jobs, incentives, allowance, bonus, etc. can be used here. It’s a good idea to safeguard your hard earned money from unnecessary expenses.
- Health Insurance and Benefits
If you don’t have insurance or mediclaim benefits at the workplace, then get one individually. Get quotes from multiple insurance companies and take the time to compare them. Get the service of a professional third party consultant. In the long-term, it pays for itself! Try to make use of the medical benefits offered by your company even if you have an individual insurance package.
- Stay Safe and Sound
Staying healthy, both mentally and physically, is the key for a pleasant life. Do routine exercises, eat healthy, cut unhealthy habits, have discipline and be happy. Keep your work-life balance at its best. Surround yourself with a positive vibe.
Emergencies are unpredictable and medical emergencies can cost you a bomb. Whatever job position you have, income level, age group and health status, you may be badly hit by such emergencies if no preparation is done in advance. Build your financial strength at the early stages of your career and have a strong mind to face things off- you can just beat anything and everything.
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