No matter how predictable you think your life is, no one’s entirely safe from the occasional curveball. One moment, everything seems to be running smoothly, and the next, you find yourself facing a medical emergency, sudden job loss, or an urgent home repair. These situations can be especially distressing if they catch you unprepared. While you can’t always predict financial setbacks, having a strong backup plan can make handling them easier and less stressful.
Many think of financial security as just about earning as much as you can, but it’s just as much about managing your money wisely and ensuring you have the right safety nets in place. A trusted financial partner like Maya can equip you with the tools you need to take full control over your finances, from rewarding credit cards to goal saving tools and time deposit options. When you have the right resources at your fingertips, you can feel more confident about navigating life’s uncertainties.
Let’s explore and outline practical strategies for setting up strong financial safety nets and building your resilience against unexpected challenges.
Start with an Emergency Fund
An emergency fund is your first line of defense against financial setbacks. It acts as a cushion that allows you to cover unexpected expenses without relying on debt. Financial experts typically recommend saving three to six months’ worth of essential expenses, but if that feels overwhelming, start with a smaller goal—such as PHP 10,000 or one month’s expenses—and build from there.
You generally want your emergency fund to be in easy reach, but not so accessible that you’re tempted to dip into it for non-emergencies. Separate it from the money you use for regular expenses and instead keep it in a high-yield savings account from which you can still withdraw the money if you need it. Should you find yourself struggling to save, consider automating small deposits from each paycheck to grow your fund over time.
Ensure Reliable Access to Credit
Even with a well-funded emergency savings account, there may be times when you need the extra flexibility that credit cards provide. A credit card or personal line of credit can serve as a short-term buffer that helps you cover urgent expenses while managing your cash flow more effectively. You might use a credit card cash advance, for example, as a fast way to augment your current cash supply in emergencies. Just make sure you can pay it back promptly to take full advantage of the convenience without racking up steep interest charges.
Maya’s Landers Cashback Everywhere Credit Card is a great example of a financial tool that provides both convenience and value. Not only does it open up a reliable credit line for unexpected expenses, but it also gives you up to 5% cashback on purchases from Landers superstore and 1% cashback on other eligible transactions*, which can help you stretch your budget for everyday purchases. We also make it a point to provide transparent breakdowns of all our fees and charges. You’ll always know what to expect and have an easier time using your credit responsibly, even when the unexpected strikes.
Know What Expenses You Can Cut If Necessary
When financial difficulties arise, you can save yourself a lot of stress if you already know exactly how to adjust your spending. Start by reviewing your monthly budget and categorizing expenses. Fixed costs like rent, utilities, and groceries are necessities, while discretionary spending—such as subscriptions, dining out, and luxury purchases—can be cut back if needed. Even small changes, like preparing meals at home or pausing non-essential memberships, can add up to substantial savings over time.
Explore Alternative Income Streams
A strong financial backup plan can also include ways to increase your income. Relying solely on one paycheck can leave you vulnerable in times of crisis, so it may help your financial security to find other sources of income.
Some practical ideas you can explore include:
- Freelancing in areas like writing, graphic design, or consulting.
- Selling products and services online.
- Renting out a property or unused space for passive income.
- Investing in dividend-paying stocks or other income-generating assets.
Even if you’re financially stable now, developing a side income stream while you still have the time and resources can help you build a stronger safety net for the future.
Maintain a Career Safety Net
Your ability to earn income is one of your most valuable financial assets. Losing a job unexpectedly can be a major financial blow, but there are proactive steps you can take to make sure it doesn’t cripple you financially. You might try upskilling through online courses or certifications to remain competitive in your field, for instance, or networking with industry peers to stay informed about job opportunities. If you’re in a field prone to layoffs or market shifts, consider diversifying your skill set or exploring alternative career paths.
In general, it’s never a bad idea to keep your resume and LinkedIn profile consistently updated, in case you need to job hunt quickly. The stronger your career safety net, the less vulnerable you’ll be to sudden changes in employment.
At the end of the day, there’s no such thing as preparing too well or being too cautious when it comes to setting up your financial backup plan. The contingency measures you put in place today may just save you and your loved ones a major headache the next time a major life change comes your way. Looking to add another reliable credit card to your toolkit? Apply for the Maya Landers Cashback Everywhere Credit Card now and enjoy unmatched flexibility, rewards, and peace of mind.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
