They say that the UK has one of the lowest levels of financial literacy in the western world, with just four-in-ten adults able to correctly apply a discount to an everyday household item.
With this in mind and given the current economic climate in the UK, it’s little wonder that citizens are struggling to manage their finances effectively and prepare for those unexpected (and often traumatic) life events.
Make no mistake; however, combining financial preparedness with a sense of resilience can help you to cope with even the most surprising of life’s events. Here are some steps to help you on your way:
- Save as Much as Possible
Whilst it’s understandable that many people in the UK struggle to save in a climate where inflation grows at a faster rate than real wages, the desire to retain as much of your earnings as possible should be driven by your mindset rather than individual circumstances.
This means savings as much as possible in any given scenario, even if this only amounts to a few pounds here or there.
As a general rule, you should aim to commit at least 10% of your income to savings, but if this isn’t possible then just focus on spending responsibly retaining as much money as possible.
You’ll find that savings can accumulate surprisingly quickly over time, creating an emergency fund for that dreaded rainy day.
- React Quickly and Dispassionately to Unexpected Events
Not only are some life events unpredictable, but many can also take further unexpected turns over an extended period of time.
For example, let’s say that you have to have an operation to resolve a physical issue or illness. This can be disconcerting enough, but imagine a scenario where complications ensue and you require further treatment through no choice of your own.
In this instance, the impact of medical negligence can be significant, which is why you need to be prepared to pursue a claim against the practitioners in question and seek compensation for any associated trauma or loss of earnings.
With this type of resilient and proactive response to adversity, you can deal with anything that happens to you whilst protecting your financial savings.
- Invest in Life Insurance
Now, we know that this may seem a little morbid, but it’s always important to prepare financially for your death or the loss of a loved one.
This is particularly true if you’re married, as it’s important to protect your partner and shield them from excessive financial costs in the event of your untimely passing.
With this in mind, you need to invest in life insurance from a reputable provider. This provides coverage in exchange for a manageable monthly repayment, with the amount that you pay dependent on the extent and nature of the insurance that you take out.
Whilst this may seem like something of an inconvenience, it can provide genuine peace of mind and may prove crucial at some point in the future.