Money tips: How to deal with financial setbacks [Video]

You can rarely predict them; the best you can do is prepare for them.

Financial setbacks can be devastating, whether it’s a job loss or divorce, injury and illness or long-term disability.

More than one in six Canadians are worried about job loss in the next year, according to a Harris Poll and NerdWallet survey. But it also found roughly two-thirds don’t have an emergency fund, which many experts consider a critical tool in the face of a financial crisis.

“A lot of people suggest having enough set aside for three months of expenses which will keep paying for your housing, keep paying for your essentials, and also just take a lot of that emotional weight off,” said Clay Jarvis, NerdWallet Canada spokesperson and financial expert.

“It can kind of clear your mind a little bit to look at the next phase of your life.”

Kate Childerhose advocates for more, if possible.

An emergency fund covering four …