How to Protect Your Personal Finances from Catastrophic Events


You always need to be on your toes when it comes to finances, as it can be hard to know when an economic crisis might occur. There could be a recession—or you might have a personal accident that results in piles of medical bills. Whatever the reason, your finances can always be protected—so long as you are prepared. Here are some ways you can protect yourself during economic hardships.

Job Loss

Losing a job is always devastating. It is hard to lose your income, and harder to not know how soon you will find work. If you do not have other options for work, filing for unemployment can be a good temporary way to ensure you can pay off your bills.


Strategies you can use to increase the odds of receiving unemployment insurance will be different from state to state. You should pay attention to how unemployment is given out and how much is offered in your state, so you know what to expect.

Injury

Another tragedy that can happen is accidental injury. This can physically prevent you from working, and can add medical bills to your stress as well. Thankfully, disability benefits are offered in these circumstances.


Numerous conditions qualify for Social Security Disability benefits. You will need to file for Disability to figure out whether you qualify. Generally, if you can prove you are unable to do adequate “gainful activity” you will be considered for disability insurance. These disabilities can range from physical injuries to mental and emotional health disabilities such as depression or PTSD.

Identity Theft

Unfortunately, under no fault of your own, you may find that your bank is having problems with your account—they thought YOU withdrew the money, but it was somebody else. Identity theft affects people all over the nation, and this can prevent you from accessing funds that you have worked hard to save up.


In these circumstances, it is important you are not completely left in the dark. Keep a stash of emergency cash just in case this ever happens. This can help you get by while the police attempt to find the person who stole from you. How much you need may depend on your living situation, but if you catch this early, the police and banks can help you.


Economic hardship can be insufferable and scary. However, there are resources you can turn to in these dark times. Preparing for these circumstances can help you feel better about any financial difficulty you may face.


Read this next: What Budget Categories You Should Focus on to Cut Your Expenses

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