You worry about the physical health of your family, but what about the financial health of your loved ones?
If you aren’t careful, an unexpected major expense like an injury that makes it tough to go back to work, or a home repair that wipes out your reserves, could be financially catastrophic. The best way to protect your family’s future is to plan for surprises so that you are never caught off-guard.
Simplify
When it comes to your finances, it is best to keep it simple. Cut out unnecessary spending, reduce the number of accounts you hold, and automate transactions wherever possible. Something as easy as forgetting to mail a payment could wreck your finances, and it is so easy to prevent.
There is also something to be said for keeping your world, and your happiness, a little less dependent on the things that money can buy. Choosing a smaller house, eating out a little less, and enjoying pastimes that don’t cost a fortune, like opting for board games instead of a Playstation, can also help you live better for less.
Plan Ahead
If something catastrophic does happen, you are going to need a sturdy safety net of savings to make ends meet. You might need to have several months of salary in reserve just in case.
The rule of thumb used to be three months but now some experts are recommending you have even more stashed away. For optimal protection, primary breadwinners or families with small children should stash 12 to 18 months of living expenses in an emergency fund.
Insurance
Ideally, you have both liability and collision coverage on your vehicles, and you should probably take out more than your state minimums. If something bad does happen, you want to make sure you have enough insurance coverage to pay for the claim.Â
Health insurance is essential too. If you are ever seriously injured or found out that you were sick in some way, you will need insurance to help cover the costs of treatment.
Without it, you may not get the help you need and even if you do, it will come with a big debt to repay. Consider life insurance as well, especially if you have people at home who depend on your income. Generally, you need a policy that is equal to 10 times your current salary.
Identity Theft Protection
Take the time to set up identity theft protection and credit report monitoring. All it takes is one time for someone to get ahold of your credit card or other financial information and your financial future could be in jeopardy.
Having the right safeguards in place can help you feel comfortable and confident when shopping online or using your credit cards.
Conclusion
Keeping your family finances safe takes planning. Start by simplifying and automating your finances wherever possible then plan ahead.
Set up an emergency fund, purchase insurance policies, and enroll in an identity theft protection program. With a little planning and preparation, you can protect your family’s financial future.
We ask that every contributor and expert answer the Identity questions in keeping with our theme. Their answers can be random and in the moment or they can be aligned with the current article they have written. In that way, and as a team, we hope to encourage and motivate each other, thus inspiring you to Get All A’s.
Identity Magazine is all about guiding women to discover their powers of Self-Acceptance, Appreciation, and Personal Achievement.
1. What have you accepted within your life, physically and/or mentally? Additionally, what are you still working on accepting? Now, we’re not talking about resignation, rather stepping into, embraced, and owned.
I do not fit in, and that is my strength.
2. Appreciation is everything. What have you learned to appreciate about yourself and/or within your life, physically and mentally? On the other hand OR in contrast, are there elements of who you are that you’re still working on appreciating?
My courage. My heart. My family.
3. Share with us one of your most rewarding achievements in life? Tell us not only what makes YOU most proud but also share the goals and dreams that you still have.
Earning my bachelor’s degree one month after I turned 19. I was the first in my family to go to college. After that, I took 5 years off then went on to earn my master’s degree. I’d like to run a marathon (I’ve only done half marathons so far)Write a book under my own name (I’ve spent years as a ghostwriter)Visit every national park (I’m halfway there!)
