How To Get Out Of The 5 Most Common Financial Crisis

Unexpected crises can leave someone shattered and helpless. Since we all have dreams and aspirations that we work diligently to achieve, we make plans towards actualizing these set goals. However, things that we never wished happen may interfere and in certain cases can be very difficult to get past. This can dampen our spirits and leave us devastated and depressed.

Nothing is more frustrating than needing a house and not being able to get the right mortgage plan for reasons that are not really your fault. There are several kinds of crisis people face when needing mortgages. The experts team from reckon the very common and shattering problem people run into in regards to mortgages is the financial crisis. We need money to do almost everything we do in life. Feeding, clothing, housing, education and travels are impossible without money. When we are unable to take care of our most basic needs, it feels like hell is let loose on us. Nobody wants to be in this situation but it happens. Subsequently, it is important that we know how to get out of these financial crises.

This article presents to you the five most common financial crises and how to get out of them.

1.   Sudden Job Loss

Jobs can be very comforting because there is a stable minimum level of paycheck you expect regularly –daily, weekly or monthly. You are even luckier when the paycheck is fat. All your ne

eds are met – family maintenance and leisure. Everyone would want things to continue this way. Unfortunately, the reality of our present economic system is that things can change unexpectedly.  Someone doing well today may be fired and left in utmost disarray. The large numbers of workers retrenched following several economic depressions in the past are good examples of this. In 2008, thousands of people lost their jobs and it was really hard on them. We all have people in our lives that at one point or the other have lost their means of sustenance. This becomes even more difficult when we don’t have savings to fall on until we get another job. The stress can be overwhelming due to the sudden change which has ceased the constant flow of money. Apart from the loss of income, sudden job loss also comes with attendant problems such as loss of self esteem, respect and self identity. Life can be a hell in situations like this.

Ways out:

  • The best way to handle a financial crisis is to be ready for it. To avoid financial crisis caused by loss of job, you must have a reserve that can conveniently sustain you a few months after any unexpected job loss.
  • Another safety net is investment. Set a certain percentage of your pay aside for investment in more projects. This way you can easily turn them to money in case of emergencies. Examples are recurring deposits.
  • You should also try to create streams of income by taking advantage of your hobbies and skills.
  • You may need to adjust your lifestyle and reach out to people who will be instrumental in your job search.

2.   Medical Emergencies

People also suffer financial crises as a result of their health. Sometimes, people pursue wealth while they forget to take care of their health. As we are busy pursuing our dreams, we often forget to take good care of ourselves. In no time, unexpected health issues strike and the dreams are no longer important. We are broken and our finances take a major hit. Many of these age-related diseases are expensive to maintain. In fact, you can be in debt you never imagined in a short time.

Ways out:

  • Try as much as possible to have a healthy lifestyle. Health, they say, is wealth.
  • You should get good health insurance ahead of time.
  • Ensure the insurance also covers your spouse and children. This way, your health is taken care of and your wealth is preserved.

3. Loss of Property

One of the ways we preserve our wealth is by investing in assets. Real estate and commercial vehicles are examples of assets we invest in. Despite the huge profit potential they have, these things are not immune to theft, damage like fire outbreak or natural disaster. These assets are usually sizable investments and when issues arise, we are in a financial crisis.

Ways out:

  • Purchase insurances that cover your properties and in the case of losses, you will receive proper compensation. There are various options available for automobile or housing insurance as the case may be. It is important that you insure your personal car(s) and house(s).

4.   Personal Accidents

Accidents happen every day, even though they are not desirable. There are workplace hazards, road mishap and more. Some of these accidents totally alter the course of our lives, probably as a result of disability or serious health issues. Yes, we try to be careful but these things still happen. It is okay to hope and pray they don’t happen but you must also be prepared in case they happen.

Ways out:

  • Invest in accident and personal insurance.
  • If your work has significant hazards, ensure your firm properly invests in health insurance.
  • Be conscious of your occupational health and safety training.

5.   Death of Spouse

The fact is that life is transient. No one asks for death but it is unavoidable. Recently, the sad news of the death of Kobe Bryant hit everyone like a hurricane. Things like this happen every now and then and if we are not prepared, the death of breadwinners can result in a serious financial crisis for those who are left behind.

Ways out:

  • Ensure you have something that brings income for you. Better still, you can understand how the breadwinner makes money, especially if they are into businesses.
  • Invest in life insurance.

Unforeseen circumstances happen every day and the best way out of it is to be prepared even before they come knocking.