Married couples can rely on one another when they fall through economic hardships, but single individuals don’t have that extra support. If you are single, you should prepare for the financial emergencies that can result from a sudden medical condition or the loss of a job. You can do this by evaluating your situation and creating a recovery plan that you can realistically follow after a financial downturn.
Set Up a Bill Payment Plan
Even before you experience a financial emergency, you should be ensuring you’re paying all of your monthly bills on time. This includes your minimum required payments on loans and credit card accounts, as well as paying your utility bills and rent on time. A single late payment can subject you to extra fees, higher interest, and negative hits on your credit rating.
Prioritize Your Expenses
You should also prioritize your payments. If you do have to make a late payment, make sure it’s a payment that won’t adversely affect your life immediately. For example, a late insurance payment may result in the loss of your policy. For that reason, you should make sure that payment is always made on time. Prioritizing your monthly expenses will help you recover faster by preventing the loss of essential services.
Know Where to Turn for Help
You should also be aware that you may need a little extra help in an emergency. Since you don’t have a spouse, you should find someone else who will be willing to help you in a financial emergency. This can be a friend or family member, but it should be someone you trust with your personal financial information. Talk to them in advance to be sure they would be comfortable and able to help you out. Explain that you would only need their help in an extreme emergency but that you might need financial assistance in a hurry. If they’re uncomfortable filling this role, look for another individual to be your point person in this way.
Finally, don’t be afraid to use professional services to help you create your plan. This will require sharing sensitive information, such as details about your finances and passwords, to your online accounts. For that reason, you should use the professional services you can trust, such as an attorney, financial advisor, real estate agent, and other similar professionals.