In fact, you might be better prepared than you even thought you could be. Here are four signs that your planning has put you in a position to make it through the worst.
1. You have a substantial emergency fund
In the event of job loss or a medical emergency, you can lean on your emergency fund , which most people want to cover three to six months' worth of basic living expenses. If you're truly prepared, you've bulked it up.
If your emergency fund has three to six months' worth of expenses, you're probably in good shape. If it has reached the 12-month mark, you might be better-prepared than the typical person.
2. You have an asset you could borrow against if you needed to
While having an emergency fund could keep you from needing to borrow in the first place, having these options can be a backup safety net. If you do need to borrow money, having this type of asset behind you could make it cheaper.
3. Youre not worried about finding insurance coverage
In a global health crisis like the coronavirus, having the right life insurance and health insurance can bring big peace of mind, both financially and personally.
Many people are scrambling to get life insurance coverage in the wake of the coronavirus. Life insurers are seeing big upticks in applications for term life insurance policies , the most popular and affordable type of life insurance. Many people who often would put off signing up for a policy are finally making the jump. If you already have your coverage in place, you're one step ahead.
4. Youre able to stay the course with your financial goals
If you're well-prepared, you're not thinking too emotionally about your money, either: Now isn't the time to sell off investments, or make sudden changes out of fear. Keep saving, investing, and working towards those goals, and you'll be prepared to make it through the downturn.
