{"id":15940,"date":"2023-09-29T15:21:34","date_gmt":"2023-09-29T20:21:34","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=15940"},"modified":"2023-09-29T15:21:34","modified_gmt":"2023-09-29T20:21:34","slug":"financial-tips-for-international-day-of-disaster-reduction","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/financial-tips-for-international-day-of-disaster-reduction","title":{"rendered":"Financial Tips for International Day of Disaster Reduction"},"content":{"rendered":"

When it comes to mitigating disasters, a culture of preparedness and long-term safety can prove invaluable when it comes to your finances.\u00a0<\/b><\/p>\n

The International Day for Disaster Risk Reduction observed on 13 October, is an opportunity to acknowledge the progress being made toward reducing disaster risk and losses in lives, livelihoods and health, to prepare and adapt to the risks of disasters and strikes in different sectors of development.<\/span><\/p>\n

Consider this: What if we use the same foresight to protect our financial futures against unexpected events?<\/span><\/p>\n

While financial hardships aren\u2019t exactly the same as natural disasters, it can still be extremely beneficial to have a plan when they inevitably happen. This is especially important as we get closer to retirement.\u00a0<\/span><\/p>\n

So, are you ready to learn how to brace for the storms of financial uncertainty? In this blog, we\u2019re going to explore how to combine disaster resilience with financial security. Let\u2019s dive in.<\/span><\/p>\n

Are you Financially Prepared?<\/b><\/h4>\n

According to a recent Bankrate survey, approximately 22% of U.S. adults admit to having no emergency savings or plan in place.<\/span><\/a> Confronted with unforeseen medical bills, car repairs, or job loss, individuals may have to resort to dipping into their retirement income investments and personal savings.<\/span><\/p>\n

This situation becomes even more severe for those in retirement planning or nearing retirement age. Neglecting to allocate emergency savings for retirement can result in difficulties during one\u2019s golden years.\u00a0<\/span><\/p>\n

However, understanding and managing your finances early can help protect you from these future hardships and secure a safer retirement.<\/span><\/p>\n

Managing Your Risk<\/b><\/h4>\n

Risk management<\/span><\/a> is like having an umbrella \u2013 you might not need it every day, but when you\u2019re stuck in the rain, you\u2019ll be thanking yourself. One crucial aspect of risk management is having adequate insurance coverage. Insurance is a financial safety net, protecting you from the financial fallout of unforeseen accidents, health issues, or disasters. Securing these policies transfers some financial risk to an insurance provider, which can help provide peace of mind.<\/span><\/p>\n

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Another vital component of risk management is maintaining an <\/span>emergency fund<\/span><\/a>. It serves as your financial cushion, preventing these unforeseen events from derailing your financial stability. A common rule of thumb is to have enough funds that cover at least 3 to 6 months of living expenses. However, during market volatility, consider upping that number to 12 months.\u00a0<\/span><\/p>\n

Including risk management in your retirement plan is essential, as it can help you protect the lifestyle you envisioned in your golden years.\u00a0<\/span><\/p>\n

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Retirement Planning For Financial Freedom<\/b><\/h4>\n

With Americans living longer than ever, <\/span>retirement planning<\/span><\/a> is key in helping to ensure you don\u2019t outlive your savings. Here are some key principles of retirement planning:<\/span><\/p>\n