These special situations could be:
1. Loss of Job: Here comes the role of Emergency or Contingency fund which in other terms is money saved for the Rainy Days. In case of sudden loss of job, life gets unpredictable. So, it is advisable to keep 6 month’s salary as emergency fund for meeting of household expenses till one finds a new job.
2. When you get Married: The wedding functions and honeymoon can be planned but what happens when you get back to Daily Grind of Life. Especially for Indian females, they should update their records and get the changes made wherever required. Talk about money…be open and talk about each ones liabilities and assets .If possible, split tasks. A little planning and transparency will allow newly weds to build a strong relationship. Here’s hoping that money never comes between the two.
3. Child Birth: It is one of the most beautiful events in a couple’s life. But be prepared for a sudden rise in expenses like Doctor’s Fees, Vaccinations, Baby’s essentials etc. Make sure that you don’t overspend on the things like clothes, footwear, expensive Toys; stylish cribs etc as the little one really don’t need them all. Buying so many clothes will not be wise as baby will outgrow them in just matter of weeks. Also, add him/her in Health cover and increase your Life insurance as well as now you have more responsibilities on your shoulders.
4. Promotion in Job/Surplus due to Inheritance:
5. In case of Illness/Disability/
Learning how to manage your money the right way in Different situations is an important step towards taking control of your life.
Are you equipped to handle these special situations?