Setting Up a Contingency Plan for Your Finances

Family financesRecent research has highlighted that approximately three quarters of all adults in the UK are worried about their finances. Additionally, 20% possess no savings at all, while around a third of British adults have no contingency plan in place. While this could leave households struggling, having a contingency plan could assist.

Benefits of a Back Up Plan

While you may never need a back-up plan, when it comes to your finances, it is a good idea to make sure you are in a strong position. This could help you in numerous ways:

  • Should you lose your job, you can use these funds to pay for essential living costs, such as rent, bills and food
  • Having savings could allow you to follow your passion or change your career path, something that could require taking a lower paid job
  • Being in a stronger financial position could help to ease stress if you are injured or diagnosed with a serious illness

Essentially, having a back-up plan could help to provide financial stability. If you would like to set up your contingency plan, here are a few effective methods.

Consider an Insurance Policy

While you probably have insurance policies for your car and home, a personal insurance policy can provide cover in the event of accident, illness or job loss. These types of insurance can act as a contingency plan, by helping you to pay for your financial commitments such as the mortgage or loan repayments, as well as providing security for any dependents.

Build Your Savings

With so many British adults having no savings, in the event of job loss or accident, this could add to their stress and concerns. One way to combat this and build a financial cushion is by actively saving. There are many ways to do this, including automatic savings apps or creating a budget to help you cut back on unnecessary spending and live more frugally.

Pay off Your Debts

While clearing your debts may not provide a lump sum you can fall back on, it could ease financial pressures, should the worst happen. By paying off your debts you could reduce your monthly outgoings as well as improve your credit score, which in turn, could make it easier to access emergency funds, should this be something you require.

No matter which method you use for your back up plan, it could benefit yourself and your immediate family by providing financial security.

5 Safest Stocks to Invest in

Stock market

Investing money is a big step. Most spend years debating where and when they should go for it, and eventually end up saving them in their accounts. Which is essentially risk-free, and yet, you can play your hand at speculation and invest in stocks, which could either fall in favour of you or not at all. If you’ve got it really good luck, id say go for it! For you first timers unsure of the way to go about it, seeking middle ground might be a safe yet thrilling experience for you. Safe with a significant return. It’ll help you understand the roots of the changing market, introduce you to a way of things and the rest is all on your luck.

But if you do want to invest, where risk will be minimum with a promised return, open to significantly increasing over time. If you’re looking for a safe investment, here are some key tips; choose a company whose revenues grow steadily, has a good position within the market, has a stock that is fairly priced and has a concrete plan for its growth and rise.

Here the blue chip stocks might be for you, let’s break down 5 of the safest stocks for you to invest in.

Ford:  This US automaker might be your safest choice. Having had dependable stocks for the past one hundred years and despite having been subjected to changes through varying economic cycles and fluctuations, it still stands to be strong and reliable. One of the oldest, it’s journey is enough for you to learn from. Coming back stronger and stronger despite road bumps and failures that could’ve broke them down. Having this company’s stocks might just turn your luck around, who knows?

Coca cola: This American corporation offer you stock but so much more. The pride and confidence of being associated with this brand adds to your life. It’s giving and has a certain sense of reliability. They’ve had a steady increase in dividends and their profits over the years, with a solid return on your investments. I’d surely recommend this company for you. Catering to all people, it’s diversity has no end. Globally, it looks out for all ages, preferences, tastes and areas. Ever growing and ever changing. Its dynamic nature should be what draws you to it.

Microsoft: The best software companies, globally dominating the market, paving its path to higher payouts. One of the leading players in the game, it’s a solid choice for your first timers and for those who wish to play it safe this time around. It has years of experience and growth in its book, creativity at its peak and widening its perspective by changing with evolving times. Trying to adapt a modern, young outlook to its company, microsoft may end up becoming even more huge than it is now, a spectacle, if you will. Now is the time you choose your stand with it.

Amazon: Newcomer of sorts, youth among others yet has a rising tide of modern technology and energy. Influential to the core, this company is the new go-to for everyone. Making it more and more consumer worthy, entering into unknown get familiar territories to broaden its horizon, this is the perfect time to be investing in these stocks. Amazon has a great plan for its future, and it’s path isn’t going to be changed or hindered with. This is your chance, so go for it!

Apple: Apple has always been the king, and while the up and coming technological geniuses like Netflix and amazon have come into the picture, its throne remains intact. With its era beginning with the iPod, the iPhone, the iPads and so on, its profitability and innovation know no stop. Its impressive gains makes it the ideal and to be honest, the best company to invest in. It’s apple, you don’t need much of my reasons now do you? You know its glory, its prestige, its history and its excellence.

For all those looking out for safe investments, make sure you know that just being a part of the market doesn’t get you anywhere, unless sometimes worse. Being impulsive, giving in to the thrill and adrenaline rush of the stock market won’t result in big numbers as returns on your investments. The market is a wide arena and it’s all for you to explore. So get going, get investing!