Scott Page is the CEO of LifeGuide, a company that specializes in financial risk-based life insurance and has thirty years of experience.
All this time, Page had to deal with people who were experiencing psychological problems due to concerns about their economic condition, including periods of illness, loss of work or retirement.
In fact, stressful and depressive conditions quite often occur in people who believe that they could not save enough money and are vulnerable to the need to pay large sums of medical bills and before the onset of the financial crisis.
In this regard, Scott Page raises the topic of the need for preliminary planning and other ways that will not allow problems to discourage you in the event of an emergency.
It's not too late
It is clear that long-term planning is the best way to avoid financial tensions. But even in the case when a person did not use this tool from a young age, far from everything is lost, and one should not give up. You should try to catch up and at a young age.
For example, if you are over fifty, but you are still working and are full of energy, you need to consider the option of an additional non-state pension. At a disabled age, it can act as a significant source of income.
For this, in Russia there is a state program offering a mechanism by which a gradual formation of a future pension financed from own funds takes place. It will help to preserve and increase the savings that are transferred to a special nominal account.
Taking care of yourself - first of all
It is necessary to revise the views on charity in relation to their children, other relatives and close people. Budget planning needs to be redesigned and emphasized on investing in one's beloved, in one's abilities and needs, in stimulating one's own activities, and not in helping others.
Otherwise, it will be difficult for you to create an airbag in case of emergency. But if you manage to save money, then the children will ultimately be easier, because you will not burden them once again with their needs.
Retirement Diversification
There are several ways to approach this event.
Firstly, if you feel you have enough strength in yourself, you can delay it and continue to work, saving money for the future.
Secondly, before retiring, you can get a part-time job and start developing a parallel business. At the same time, you need to understand that this should not be a large-scale activity, since it will have to invest a lot of money and a lot of effort, and this is most likely not your case.
Thirdly, to continue the business even after leaving the main place of work.
Any of these options or their reasonable combination will allow you to save money to create an airbag.
Budgeting and cost control
Having a budget plan, you can analyze the irrational monthly expenditure of funds. For example, eliminate unnecessary costs, which are often incurred due to their excessive availability and intrusive advertising. After all, today you can purchase everything through the Internet without leaving your home.
Most likely, most of what is acquired in this way - from household goods to clothing and furniture - will not be so necessary. But the rejection of the excess will ultimately save tangible amounts. All this fully applies to visiting cafes, restaurants and ordering food at home, which should not be abandoned at all, but should be reduced to reasonable limits.
For those who find it difficult to independently manage financial planning, there are a lot of services on the Internet, and you can always ask for help from relevant specialists or advanced acquaintances and relatives in this regard.
If you are a person in whom frugality cannot be attributed to virtues, then you need to reconsider your views and understand for yourself that the money that you are inclined to put to the wind today, tomorrow, being saved, can be directed to urgent needs. In extreme cases, you can put them in a bank on a special account, which has a limitation in terms of their spending.