When it comes to preparing for a crisis, many people think of war, natural disasters or other societal emergencies.
It is all the more common for smaller, more personal crises to occur: for example, losing your job or getting divorced and thus facing a financially challenging future.
– How do you prepare for it? It is also a form of preparedness, says Martin Svennbergwho is a financial prepper and who runs the platform as well as the “Everyday Prepping” podcast, to News24.
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Photo: Anders Wiklund/TT This is how you create financial preparedness
But what does such preparedness look like? First of all, you should define what type of financial crisis you want to prepare for and then build up a buffer.
– You have to ask yourself what you are putting money away for. If it is losing the job and being without income, then you have to think: How long will it take me to get a new job? If you work in a vulnerable industry, it might take three to six months, says Martin Svennberg and continues:
– Let’s say you want a buffer for three months, then you should focus on your expenses and not that you should have three months’ salary in the account. So calculate the expenses that you have to pay each month, multiply it by three and you will find out what your three-month buffer should be.
Photo: Martina Holmberg/TT
After that, it is important to be consistent and stick to the plan, with the funds you receive.
– Save a hundred ring a month, rather than putting money away when you get some extra income only, says Svennberg and at the same time emphasizes the importance of being as debt-free as possible, in order to achieve the best possible financial preparedness.
If at the same time you want to prepare for a situation where the digital banking systems are knocked out, you can, according to Svennberg, minimize the risk by having several bank cards, using different banks and having cash at home.
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