5 Financial Emergencies Every Family Should Be Ready For

If worries are equivalent to money, then surely, many Filipinos are millionaires these days. Unfortunately, worry does not equate to growing your money. In fact, worry does involve money, which means you need to prepare for these concerns before it even happens. Otherwise, you might end up in debt and lose what you have just because you didn’t prepare early.

This is not just a Pinoy problem. In fact, this is a global problem. Every family, regardless of the race, should be concerned.

Before it’s too late, here are the most common financial emergencies you and your family should prepare for:

Emergency No. 1: Natural Disasters

Apparently, the Philippines experience more than 10 typhoons every year. For the past few years, the PHIVOLCS is warning the Filipinos about the impending earthquake or “The Big One.”

In other words, natural calamities will always happen. These calamities could lead to destruction, which eventually leads to loss.

Nothing beats early preparation when it comes to natural disasters. Having an Emergency Bag with food, water, and basic supplies could separate life and death in case disaster happens. Having an Emergency Fund is also helpful since your family could use it to get started. Getting an insurance coverage for your car and home could also help, although this could mean additional expense.

Emergency No. 2: Job Loss

OFW life is unpredictable. You’ll never know when disaster or political turmoil will struck the country where you’re working. There is also a possibility that you might be sent home due to variety of reasons such as redundancy, bankruptcy, and even co-workers stabbing your back.

This is why we always stress how important savings and investment are while you are still working overseas. You earn more, which means there is a higher chance that you could save more. Make the most out of your time there by working hard. If your health and body permits, get another side job or put up a small business back home for your backup.

Emergency No. 3: Medical Issues

Who doesn’t get sick? Everyone in the family, including you and most especially you, will experience weakness from time-to-time. If you don’t take care of yourself, then all of your savings might go to medical expenses.

Having a dedicated Emergency Fund could help address any medical emergencies. If you can’t fully commit to your P100 per day savings, then at least get yourself covered. There are several insurance companies that offer health insurance coverage to OFWs like you. Take advantage of that because who knows what’s going to happen to you, right?

Of course, prevention is always better than cure. Eat healthy, sleep well, get some rest, and learn to say no to things presented in front of you. Remember, health is wealth.

Emergency No. 4: Home Repairs or Renovation

Let’s say the roof is leaking or the pipes in the kitchen were busted. You could either fix it immediately or not worry about it until it gets worse.

Clearly, you are for option number one.

It’s hard to predict when home repairs are needed, which is why it is important to be prepared for it. Your Emergency Fund plays a crucial role in this, so make sure it has sufficient funds to cover for the expenses.

Emergency No. 5: Business-Related Expense

This is applicable if you have an existing business.

Having your own business, no matter how small it is, could help you a lot while you’re still working overseas. It helps augment finances back home and the burden does not necessarily lie on your shoulders alone.

Of course, maintaining a business could also mean costs. You might experience shortage in your cash flow, which could translate to inability to buy new supplies or late rental payments.

The good news is there are financial institutions like Balikbayad that could help you on this arena. You could borrow up to P500K with low interest rate and minimal requirements. Simply fill out the online application form and a Balikbayad representative will get back to you as soon as possible.

The bottom line is preparation. These emergencies may or may not happen but at the end of the day, what matters most is how well and how early you prepared for it. You can do that starting now.