Putting plans in place for a financial emergency could help you navigate a storm when it happens. Industry super fund-owned bank ME explains the steps to take.
1) Know which expenses you can cut
When you’re in the midst of a crisis, it can be hard to think clearly about which costs you can afford to trim. Having a list prepared ahead of time can make important decisions easier. Your contingency plans could include dropping your gym membership, skipping your daily latte and avoiding Friday night take-outs.
2) Start to build savings now
In a crisis every penny counts, but why wait for crunch time? Start sweating the small stuff today to grow a pool of emergency money. Make savings easy by setting up an automatic transfer of funds from your everyday account into a high-interest savings account.
3) Keep short-term cash accessible
In a crisis you need cash fast. Think about the best place to store your cash so that it’s earning a healthy return while still being available when the money is needed.
4) Get your partner on board
One in two Australian couples admit to disagreeing about money. Yet working from the same page can be critical to helping you survive an emergency. If you’re in a relationship, take the time to discuss emergency plans and arrive at a strategy you both agree on.
5) Know who to talk to
A problem shared can be a problem solved. When a crisis strikes, make your lender an early port of call. It’s in their interest to help you renegotiate a payment plan.
This article is brought to you by ME. For more information, please visit www.mebank.com.au
Members Equity Bank Limited ABN 56 070 887 679.