You’ve gone a long way when your business is all set up and doing very well. However, the hard reality of financial setbacks and unexpected expenses is something we all have to face, so best to always be prepared. You might be one of the many businesswomen who has obligations to your family like caring for your young children and at the same time, well into your entrepreneurial journey.
Things can suddenly take a major turn when you go through the different stages of life and more so, when you come across situations that you didn’t really see coming. A helpful way to weather any storm that may come your way is to have a savings and investment plan so read on and know how saving up can help your business in case it encounters financial problems.
Let’s start by recognizing challenges to reaching your financial goals, such as the following:
• Disability. If you have dependents, ensure their needs are covered in case of an unforeseen event. For example, consider a life insurance plus investment plan for yourself and invest in disability insurance.
• Health setbacks. While insurance with investment plans can help cover some medical costs, ensure you have enough coverage by considering to get a comprehensive health care plan as well. Take good care of your health, too, by getting regular checkups, exercising, and eating healthy.
• Death of a loved one. As this can have an immense impact emotionally and financially, having a will prepared and kept up-to-date can help set things in order. Ensure that you have life insurance coverage that also has an investment component to provide care and support for your dependents even when you're gone.
• Job loss or resignation. To be prepared in case this happens, have an emergency fund to temporarily cover your everyday expenses which include your business.
• Market volatility. This occurs when certain market factors such as, consumer sentiment, inflation, company performance, fiscal and monetary changes and the like cause movements in the market. You may lose a lot of money when this happens unless you diversify your investments and choose less risky forms of investment such as bonds.
To further help you protect your finances and prepare for such potential financial threats to your business, we rounded up these following steps you can take:
1. Build a financial plan. This plan should include your financial goals, such as saving for retirement, a house, and if you have children, their college education. Also, consider how you will manage your investments in the long term. Consider speaking with a financial advisor to help you create a plan that suits your needs.
2. Have an emergency fund. Save enough money to cover at least three to six months' worth of living expenses should you lose your job, get sick, or experience other unforeseen events.
3. Say no to debt. Borrowing money or using your credit card often comes with high interest rates, so you eventually end up paying more. Having too much debt can also leave little money for unexpected expenses or emergencies. Because of this, try as much as possible to always pay for things you buy in full.
4. Invest. Invest in assets like stocks, bonds, mutual funds, and real estate to potentially grow your money. Remember, though, that each of these has its own level of risk. Therefore, understand these risks and learn how to limit your exposure before investing. Also, make sure you diversify your portfolio, so that if one of your investments performs poorly, the others are not put at risk.
5. Review your insurance and investment plans. Also, ensure you have adequate insurance coverage for unforeseen events like death and disability. Check if it is enough to cover your needs and that of your dependents and/or property. Always reach out to your financial advisor to cover the gaps of your financial needs.
If you’re ready to avail of or upgrade your savings and investment plans, consider AXA’s range of products and services. We offer flexible plans that will suit your budget and lifestyle, no matter your age and stage in life. Our wide range of insurance and investment plans will also help you prepare for unforeseen events that can potentially hurt your family’s finances.
If in case a sudden illness would set you back, AXA also offers various health care plans to help you overcome such a roadblock to your entrepreneurial journey. One of your options could be AXA Health Care Access if you’re looking for a health plan that’s both comprehensive and affordable. You may also consider AXA Global Health Access which provides best-in-class worldwide medical coverage.
Know you can game plan your way to preparing for the unexpected by availing of any of AXA’s savings and investment plans. Talk to an AXA financial advisor today for more information.