You never know what life will throw your way. Here's how to prepare financially.

Key takeaways

• Always have some emergency savings. We suggest setting aside enough to cover at least 3 to 6 months of essential expenses.

• Pay down high-interest debt or avoid it altogether. It can be a real financial burden.

• Insurance matters. Think through your personal set of circumstances and make sure you have the insurance you need.

It's easy to feel like you have your financial situation all figured out until life throws a curveball. This could be loss of a job, a family member's illness, or even a global pandemic.

It's hard to predict what the next curveball will be, or when it might come your way. But it is possible to prepare financially so that when the unexpected does happen, you have a plan. We have a few tips to help you prepare for those future curveballs.

1. Always have some emergency savings

We suggest setting aside enough in cash to cover at least 3 to 6 months of essential expenses. If you're single, you have little or no debt, and have friends or family who could help you out in a pinch, you might be comfortable with 3 months of savings. However, if you have a spouse, kids, and a mortgage, you might be better off with 6 months of savings or even more. Consider keeping that money in easily accessible accounts, so you could tap it quickly if you ever need to.