100 Words On: The Importance of Having a Financial Back-Up Plan

Everyday, people lose their jobs, become seriously ill, and suffer other hardships that strain their household finances. Even so, a sobering study by State Farm found that 55 percent of those surveyed don’t have a back-up plan for weathering a long-term financial crisis that may occur due to unexpected circumstances. I have three back-up plans: a) adequate life, health, home and auto insurance; b)  an emergency fund with six months of living expenses; and c) albeit small, a secondary source of income.

The bottom line: Life happens. It’s your responsibility to prepare as best you can for whatever it throws at you.

Photo Credit: US Army Corps of Engineers Public Affairs

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