You can make all the plans in the world, and do everything in your power to stay on track, but life has a way of ignoring your wants and desires sometimes. Life is completely unpredictable. Life is full of chance, fate, twists and turns, the unpredictable and unpredicted. Sometimes it can be great (imagine winning the lottery!), sometimes it can be a real testing time that puts you in unfamiliar place with your back against the wall. This is when protecting your family will become the most important thing to you, especially if you were the chief or sole breadwinner. As such, we have compiled a list of ways that you can protect your family when things don’t go to plan, for whatever reason, and in whatever form.
Fail to prepare then prepare to fail.
It is always a good idea to learn the basics of money; how to budget and where to invest. But don’t absorb all this invaluable information by yourself; teach your partner and children how to budget better and invest wiser as well. It may be that you suddenly lose your job, in which case it will be a matter of thinking clearly and taking the right steps, and making sure you are protected financially. It may be that you were unlawfully terminated, in which case it is always wise asking the professionals for their advice, like those at www.warriorsforjustice.com. However, it may be that you fall ill, or worse, in which case it is always a good idea to have brought in an accountant that knows your story. The reason for this, they will be understanding and will be able to think clearly at a time where your family can’t.
Invest in a 401(k) plan.
While most of us have not lived through a depression, unlike our parents and grandparents, we have seen an economic crash. As such, we should understand how turbulent the market can be. That’s why it is always a good idea to put money into savings. If you are self-employed, put $60 a week into savings, this will soon add up. If you are employed, then invest in your employer’s 401(k) plan, which is a workplace savings scheme. Most employers match contributions, so if you can afford to put in the maximum, then do.
Budget, budget and budget.
If something happens to you – whether it be redundancy, illness or worse – do everything you can to minimize the shock. That means sharing your financial position with your family. They will need to know what they have to work with so that you can all plan for certain events. It will also mean they will know what fixed outgoings there are so that they can plan the more flexible outgoings accordingly.
It is always worth having insurance, just in case. Life insurance is a great place to start because death is inevitable; it is just a matter of when. What’s more, it can cost as little as $10 a month, and that will secure you around a $90,000 lump sum payout should anything happen. If you’re not sure how much you should be paying in, a good rule of thumb is to make sure the payout will pay off your mortgage at least. This will then reduce a big chunk of the financial pressure should something happen.