Losing your job or having an unexpected medical bill can throw even the highest earners into a tailspin. That’s why it’s really important to plan ahead and make sure that you’re covered if one of these things happens unexpectedly. The cool thing is that even a little bit of planning (and saving) can put you leaps and bounds ahead.
Play with the tool below to see what you can do to protect yourself. We’ve pulled all of the relevant statistics, and brought in the selected persona's information, so the tool is personalized to their profile!
Now, you might find yourself saying, “what’s the likelihood that I would actually lose my job?” or, “Do I really need to save for a medical expense? I’m pretty healthy.”
It actually happens more often than you would think!
Almost 91% of Americans have an unexpected medical expense every year!1
And nearly 1 in 80 Americans lose their jobs each year, but depending on the industry you work in, it can be closer to 1 in every 25.2 Interestingly, over 18% of people perceive they will lose their job within the next 5 years.3
When looking at how long a typical job search lasts, it might seem like you have to save an enormous amount of money to protect yourself. We don’t view it this way. Unlike health issues, where you have limited control over an illness or injury, if you lose your job, you have a lot of control. This is not to say, we don’t have to plan for it, it simply means that we don’t have to go crazy.
Based on the spending of the selected persona, we would recommend saving approximately for emergencies. This would cover them for around weeks, while they look for a job. Or it would protect against of the most common medical scenarios.
To be super safe, they could add an additional . This would protect them against of the most common medical expenses even if they lost their job at the same time!
Without an emergency fund in place, most people are forced to take on debt or dip into retirement savings to keep their head above water. This reaction, if it happens repeatedly, can leave someone in financial ruin, drowning in debt with no retirement savings.
We aren’t going to tell you this is something you must do (that’s just not who we are), but now you know the risk you run when you don’t prioritize saving for emergencies.
Savings for emergencies is only the tip of the iceberg when it comes to your financial life. There is so much more to be done! Planning your finances can be overwhelming at times, which is why we provide a worry-free way to establish your financial lifestyle. Through personalized lifestyle planning we enable the life you want to live now, while helping you plan for the future.