We all know that life can throw some pretty wild curveballs our way. Recessions, natural disasters, pandemics, medical emergencies, layoffs… the list goes on.
We can’t bubble-wrap ourselves against everything that might happen, but we can put some smart safeguards in place for our finances and career.
Here are 6 practical ways to prepare your cash and career for the next “major historic event,” so you can deal with it head-on when they come.
Get Yourself Covered
First things first—don’t skimp on insurance. Make sure you’ve got the basics: health, home/renters, and auto insurance. And don’t forget about life and disability coverage—they’re just as important. If your employer offers these benefits, fantastic.
But it’s smart to know what your backup options are (both public and private) in case you suddenly find yourself without a job. Have you considered an FSA or HSA for medical expenses? If you’re enrolled in a high-deductible health plan, an HSA can be a lifesaver.
Speaking of medical costs—did you know a typical 3-day hospital stay runs about $30,000? That’s definitely not something you want to face without coverage.
Hope for the Best, Plan for the Worst
Let’s talk about something most of us would rather avoid thinking about—what happens to your money if something happens to you?
Take a few minutes to assign beneficiaries on all your important accounts—your 401(k), stock plans, brokerage accounts, IRAs, and HSAs. It’s actually straightforward to do—you just need their full name, birthday, and sometimes their Social Security number.
Also, be sure to double-check that your ex isn’t still listed as a beneficiary on that old 401(k). Remember, these designations are legally binding and can actually override what’s in your will.
Build a Safety Net
Did you know only 43% of Americans could cover a surprise $1,000 expense from their savings? Let’s make sure you’re in that group.
Start by creating a buffer—aim to set aside at least $1,000 or one month’s housing payment (whichever is bigger) in an account you can easily access. This way, when your car suddenly needs a new transmission, you won’t have to choose between paying your electric bill or racking up credit card debt.
Tackle the Debt Monster
Credit card debt can seriously hold you back when a crisis hits. If you’re carrying balances on multiple cards, focus your extra payments on the one with the highest interest rate—but always make at least the minimum payment on all your cards. And try to avoid adding new debt while you’re paying down the old.
Fun fact: the average American household shells out about $1,000 per year just in credit card interest and fees. Think of what else you could do with that money!
Rainy Day Fund
Once you’ve got your initial $1,000 buffer in place, it’s time to think bigger. Aim to save 3-6 months’ worth of essential expenses. This is your true emergency fund—your financial umbrella for those rainy days when you lose your job or face a major unexpected expense.
Expert tip: keep this money in a separate account so you’re not tempted to dip into it for regular expenses or goals. Out of sight, out of mind—until you really need it.
It’s worth noting that 85% of Gen Zers and 79% of millennials worry about covering a month’s expenses if they lose their primary income. So building up this safety net can give you incredible peace of mind.
Crisis-Proof Your Career
Your financial safety isn’t just about money in the bank—it’s also about your earning potential. That means you should have a game plan ready in case of a layoff.
First, don’t wait until you’re in trouble to build your professional network—nurture those relationships now.
Keep your resume and LinkedIn profile updated with your recent accomplishments. Something people often forget is to make sure you have personal access to important work documents like your portfolio and those glowing performance reviews.
Add your personal email to important accounts and save copies of documents you might need for future job searches.
Where to Start
Pick one or two strategies to tackle first—maybe stashing away that initial $1,000 buffer or updating your LinkedIn profile.
By building your financial buffers and preparing your career, you’re not just surviving—you’re setting yourself up for peace of mind.
Are you ready to retire with confidence?
Book a no-obligation initial call to see how we’ve helped hundreds of clients craft a personalized retirement plan that’s uniquely you.