How to Prevent Personal Financial Disasters

Financial disasters can happen to anyone at any time.  Maybe they come in the form of a crash in the investment market that you have chosen, or maybe your company will be hit with future layoffs.  Financial disasters have many faces, and doing what you can to prevent them is essential.  Here, we will examine some ways to help keep them from happening to you.

One way to help protect your money against financial disasters is to create a savings account.  Ideally, at least a quarter to a third of your income should be saved or invested in order to help you prepare for retirement, accidents and injury, and other major life events.  Having a significant financial savings built up can help you make it through layoffs, market crashes, family emergencies, and whatever else life can throw your way.

Another great way to protect yourself against financial disasters is to create diverse investments.  Putting all of your money into stocks, real estate, or any other singular avenue of investing is exceptionally risky, and you want to have multiple options.  Remember that just because a market is profitable now does not mean that it always will be. 


Consider the purchase of hard assets such as precious metals as well as investments in stocks, bonds, CDs, or real estate.  The more diverse your investment portfolio, the lower the risk you are taking.

Ultimately, preventing financial disasters is a combination of good savings and good investing.  When you can manage these two things, it can be easy to stay both safe and sane no matter what financial storms come your way.

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