of business, withdrawing money from retirement accounts is a bad idea as it can put your retirement security in jeopardy. But it might be enough to keep you from sliding deeper into financial trouble.
To conclude, if you have made it through difficult times in the past and wish to minimise the impact in the near future, you need to do certain things. Create an emergency fund equal to a few months’ of expenses and keep it in a separate bank account. Make insurance a safety net to cover expenses related to medical and other contingencies. If you have a well-designed plan before a financial emergency strikes, it will lighten your load a great deal.
The writer is associate professor in finance and accounting,