It may not make the most uplifting dinner party conversation topic, but planning for disaster is certainly sensible. In order to manage disruption to your work or home life, it pays to have thought about it in advance, because if you leave it too late, there’s often very little that you can do to help your situation.
The best businesses and, indeed the most financially secure individuals, take the viewpoint that it is only a matter of time before disaster strikes. If you plan for when, rather than if, disruption will occur, you’ll be able to get through it much more smoothly.
Have a plan
The first step for dealing with setbacks is to have a clear plan. Companies carry out fire drills regularly, families that live in parts of the world where natural disasters are common know exactly what to do when disaster strikes, but do you have a clear plan of action for your home or business?
Think about the worst-case scenario, whether it’s to do with your family, job or health, and consider the best ways of managing. In the long run, you’ll be thankful that you came up with a plan.
Digital disruption
For businesses, disruption has evolved over the last few years. Whereas the biggest risk to company data used to be in the form of fire or theft, now digital disruption is becoming a major issue.
Hackers and insider agents pose a major risk to businesses, as do internet blackout and computer malware. Many companies now formulate a business continuity plan that contains disaster recovery as one of its key components. Some cloud computing firms have even been set up with the sole purpose of helping businesses to manage disruption, because even the smallest amount of downtime can have a huge reputational impact.
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If you want to protect your assets against future damage, one of the most sensible decisions is to invest in insurance. Whether you choose to pay for home insurance, business insurance, property insurance, or all three, you’ll need to do plenty of research and choose a policy that meets your needs.
The options are vast, ranging from basic policies to life insurance with a savings plan that gives you extra protection, and each will have their own merits. Insurance does come at a cost, but it’s one that you’ll appreciated when times get tough.
A financial cushion
When things are going well it can be difficult to find the motivation to put money into your savings. Life is for living, after all, but living from one paycheque to the next is not a sensible way of managing your finances.
Instead, it is recommended that you put aside enough money to live off for approximately three to six months, should you lose your job. Get into the habit of putting money away each month and you’ll have a financial buffer that may prove vital in the years to come.
Don’t be blasé when it comes to planning for the future. You should, of course, plan ahead for happy times, but you’ll be glad you also planned for the bad times if disaster does strike.
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