Why is it Important to Have Plan B? – Why not have one for Greater Financial Security?
Presented by Cozee Cackel
With the hardships many faces today it’s hardly out of the question to think about one’s financial future, especially if they have a family to support. Now more than ever, it’s important to secure your financial future. If the chips are ever down, you’ll at least have a plan to turn to for help.
It’s true that you should put your whole heart into your main source of income. When you work hard enough with a drive to succeed, nothing will keep you away from that success. However, unexpected circumstances come into play every so often, so you may need to divert to Plan B temporarily.
Here are a few ideas for creating a solid Plan B:
Develop Multiple Streams of Income
When your main stream of income is sufficient to sustain your family, you may be tempted to rely on that income alone. Regardless, it’s a good idea to supplement that income in case things change or the unexpected occurs. You may think you don’t really need the money, but you can always save for future unexpected expenses.
- Look for side jobs in your field
- Consider using the Internet for part-time income
- Turn a hobby into a money maker
- Consider investments to grow money faster
Add to Your Savings
You’ll need to realize that even small contributions will add up to something big over the years. Shop around for a high yield savings account or CD. Tell yourself that you’ll add a fixed amount to the fund each month if a savings account. Have an automatic withdrawal every month even if you can only afford $10 or small amounts at a time to add to your savings account. This really adds up over the long run!
Develop Your Skills
Always be on the lookout for opportunities to improve your current skills, or to develop new skills. This will back up your career opportunities. If you pigeon hole yourself into just one career, you’ll be scrambling if something unexpected happens. While it’ll still be a bummer if Plan A falls through, it’ll be so much better if you can turn to Plan B without panicking.
Make Contacts and Establish Good Relationships
You’ve probably heard the saying: “Don’t burn your bridges.” You truly never know when you might want to walk a certain path, so don’t close any doors hastily. Also, remain open and make contacts wherever you can. You might be just walking in a shopping mall when you stop to help someone and that turns into a friendship you never expect, and later that person may be able to help you out in the future.
Write Out Your Plans
It’s vital to maintain a certain amount of organization in your plans. When establishing your life’s Plan A and Plan B, it’ll really help to write things down. Have separate lists for your short term and long term financial goals. Cross off goals as you meet them. This way you’ve got a written reminder of your progress. If Plan B comes into play, you’ll have written instructions and it will ease any worries.
Making Wise Choices
When it comes down to deciding what you should do with your money, remember to always invest in some sure bets. You don’t want to gamble with your money expecting greater gains. Your best bet is to find a middle ground. Decide on a certain amount of money that automatically goes into a savings account and can’t be touched.
When you have a nest egg for unexpected life events, it gives you time to execute your Plan B. If you’re lucky enough to have extra cash coming in, you can then decide to take a few risks with your finances.
Sometimes it takes a certain amount of risks to get ahead. If you know you are covered with enough money coming in, it just might be worth your time and investment to take a few calculated risks.