It is a wise thing to do, protect yourself financially against any unexpected events. This life choice is ever more critical if you have a family and children. If you are the main or sole money earner in the family, if your income is suddenly cut off due to an accident or some other form of major life event, then you are stuck. Having no money and being in a dire situation can lead you to make some highly damaging financial life choices that can affect you far into the future. You need to be wise, think ahead, and prepare your finances while you can. Above all else, the peace of mind having a plan for unexpected events will have can let you rest easy, safe in the knowledge have done the right thing.
There are many different insurances that you may find helpful. These include life insurance should you be killed and payment protection insurance, among others. By purchasing these types of insurances, you know that you and your family will have the money you need to keep paying the bills and staying afloat. Life often throws curve balls, and insurance is there for a reason. It can be a real lifesaver if the time ever comes that you require it.
Simply put, the more money you have saved, the better protected you will be in the event of something unexpected. There is definitely some wisdom in that old adage of having a rainy day fund! If life does take that unexpected turn, you need to have been sensible. If you have, you will have time to wait for any insurance litigation to be processed, for example. If you don’t have insurance, having money saved is the next best thing. It will buy you time to make those all-important next decisions. Maybe you will have to sell your house and downsize, and the more you have saved, the less desperate you will be. Try to have a minimum of three months’ regular pay in your savings.
If something happens and a partner becomes very unreasonable, perhaps even filing for divorce, you need help. First, remember knowledge is power, so it is in your best interests to learn as much as you can now to mitigate this possibility. Think about a prenup if you are getting married, for example. Maybe you should keep a separate bank account if your partner loves spending money. It may even mean you need to seek Arbitration to resolves any personal disputes as privately as possible. But you can plan ahead and keep any knowledge in your back burner, ready to be used if and when needed.
Try and make the best life choices you can now. Live within your means, cut up that credit card, get out of debt, invest, and possibly go for that promotion. There is no time like the present to improve how you are with money. How you are now will translate to how you are when you quite possibly lose everything. So, begin developing good habits now.