One of the things I did over the weekend was to read up on bridge disasters. Ok now what has that got to do with financial security? Well remember the idea that finances are like a bridge. I was looking at various bridge disasters to see what comparisons could be made between them and the financial disasters that people experience. Amongst the reasons why bridges collapsed was that they were victims of an earthquake. This morning I heard that Christchurch New Zealand had experienced yet another earthquake that was strong enough to bring down buildings.
Our finances can be like that everything can look sturdy strong with no sign of problems then the earth shakes beneath us. Something that we rely on disappears. It could be a loved one who is involved in an accident or experiences a medical emergency. They say with earthquakes that it is possible to predict them to a certain extent and that is also true of accidents and medical emergencies. I mean if someone smokes it is not much of a surprise when they are diagnosed with a smoking related illness. How many times do we use the phrase that was an accident waiting to happen? We look back and recognize the warning signs after the event. Things that we could have done differently if only we had recognized them for what they were.
Life assurance household insurance and other insurance that covers things like critical illness come in very handy when these sorts of earthquakes hit. Losing the breadwinner and being able to claim on an insurance policy that pays off the mortgage will increase the possibility that your family will not lose their home after their death Even just putting money aside to pay for your funeral so that your loved ones are not presented with a huge bill can be helpful. Some people end up in debt that can cause them problems after paying for a family funeral. Of course many also advise building up an emergency fund or putting aside money for a rainy day so that you can draw money out of you savings to replace a washing machine rather than paying for it using a credit card and in the long run paying more for it.
Earthquakes do not happen that often and there are some areas where they are more likely than others. In the same way with our finances it is more likely that you will have to bury a relative older than you than one younger than you. It is easier to survive an earthquake if you are better prepared beforehand. Is it time to sit down and think about what can be done now to protect your loved ones from future economic earthquakes?