Sharon Epperson, the Senior Personal Finance Correspondent for CNBC, advises people to focus on what they can control in their finances.
3. Where the money goes when it comes in
Knowing how much money you have coming in is just the first step. You must have a way to allocate your money into various bank accounts, not just one. This allows you to be more strategic about your pay and distribute to a few places to help you meet your financial goals. Types of bank accounts may include money for savings, emergency fund, and vacation fund.When you have a plan for your money, you can invest that money for the long term.
Epperson has her own experience of a medical emergency. In 2016 working at the height of her career, she suffered a brain aneurysm rupture. Half of those people who experience this die immediately, and two-thirds of those who survive have neurological deficits. Epperson was unable to work for a year, and in her recovery, she had to relearn everything from communication to balancing a checkbook.
Epperson didn’t know if she’d ever return to work. Fortunately, she had disability insurance through her company and had saved up an emergency fund. Those two precautions kept her finances healthy while she got back on track. The bottom line is you never know what can happen in life, and by controlling what you can, you are offering a layer of financial protection for yourself and your family. Remember that it is good to talk with your support systems and networks about finances, as it makes us stronger as a community and helps make you stronger. Have those conversations, talk about the worry and insecurity you feel, and prepare your finances to endure hardships along the way.