What comes to your mind whenever you hear of a financial emergency?
Do you always think about negativity and unpleasant events?
Out of 10 people, 8 or probably all the 10 people will regard a financial emergency as an unpleasant event.
Let’s have a clearer understanding of what a financial emergency is.
What is financial?
This should not cause a problem since the term is often related to finances.
It is representative of one’s financial capability which is evident in how much you can spend based on your income level.
What is an emergency?
Emergency on the other hand comes with a little misunderstanding.
Even most dictionaries tend to refer to it as unpleasant events such as accidents, health issues among others.
According to Merriam-Webster, Emergency is an unforeseen combination of circumstances or the resulting state that calls for immediate action.
From the above explanation, the next question should be:
What is a financial emergency?
Financial emergency refers to an unforeseen circumstances or event that requires immediate financial commitment.
Note, there can be an emergency without financial obligation.
Accidents and other unforeseen negative events are also examples of financial emergencies.
From the positive view of a financial emergency, a change in your job probably to another state is an example of an emergency that requires financial obligations.
You will need to relocate which requires securing an apartment in the new state.
Also, you might be promoted and not be relocated to another state but there is a compulsory change in your style of dressing which requires changing your wardrobe.
A scholarship that you have applied for might be approved when you least expect it.
All these are financial emergencies but they are not negative circumstances.
Nevertheless they still require financial obligations.
Step by step guide on how to handle financial emergency in Nigeria.
- Have a saving plan.
You cannot cheat nature. Infact without savings, you might not be able to do anything.
In all dealings with money including wealth creation, saving is the fuel.
When you have enough savings, financial emergencies might not become a burden.
- Installmental payment
This is less available in Nigeria but if the emergency is about assets, you can consider paying in instalments.
Nevertheless, there are some instances whereby Installmental payment will not be available.
In such cases, loan seems to be the way out.
Don’t ever think of getting a loan to clear expenses. It is a bad financial habit.
Taking a loan during financial emergencies most especially for an expenses is not advisable in Nigeria.
- Passive income
This is the most active way of handling financial emergencies.
Making passive income in Nigeria is very easy with good investment.
Even if you are not having any investment, you can make passive income with kurepay.
Financial emergencies require planning and it should not be handled in a hurry.
You will make decisions that will affect you later on if you are not careful about what to do.
Now, you know that financial emergencies are not about bad occurrences alone.
Also, you have learnt ways of handling financial emergencies.
In a few words, can you narrate a financial emergency that you had and how you solved it.
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