Thursday, February 27, 2014, AM | 2 Comments
Nobody likes to plan for the unthinkable, but unfortunately, life doesn’t usually go the way we plan it. Even if you feel financially secure now, any number of events can take that away from you in a heartbeat. It’s important to plan for such things, and if you have a family to support, it’s even more critical.
There are many ways you can protect your family in the future by taking certain steps today.
Build a Safety Net
Whether you’re working for yourself or for an employer, nothing is guaranteed. A shift in the market could take your business down with it, or your employer could be forced to lay off employees or close their doors.
Often times, these events happen without warning. What was a lucrative job one day may be gone the next. For this reason, it’s essential that you build a safety net.
Start dumping any extra money you have into a savings account, even if you have to cut back on luxury purchases. Ideally, it’s recommended to have between three and six months’ living expenses saved up at any given time.
This money can help tide your family over until your situation improves. Collecting this savings could help you avoid other devastating consequences that are connected to losing your job, like losing your home.
In today’s employment environment, skills are everything. Nearly all jobs now are demanding relevant skill sets from their employees. This can include, but isn’t limited to, college degrees and certifications.
You can even learn some of these skills on your own, such as writing or web design. If your skill set leaves something to be desired, consider dedicating a bit of your free time to picking up new ones.
If you suddenly find yourself out of your current job, having other skills to draw on can greatly improve your chances of finding other work.
The bread winner isn’t the only person who should keep up on their skills, if one partner has been a stay at home parent, it’s important for them to keep up with some of their marketable skills in case they ever need to work.
If their partner were to lose their job, get sick, or even die, they will be the ones to have to step in and become the bread winner. Taking online classes or volunteering in your spare time is a great way to boost your resume while being a stay home parent.
When you’re relatively healthy, paying for life insurance can seem like a needless financial burden. However, people can get sick and accidents can happen at any time. Having life insurance is one way that you can continue to provide for your family in case something happens to you.
For young, non-smoking adults with no pre-existing medical conditions, many life insurance policies are actually quite affordable. If you live in Oregon, there are many life insurance providers in Portland that offer different options from term to whole life. So do your research and shop around.
Make a Will
Death is an unpleasant topic, and most people would prefer to ignore it altogether. However, ignoring something doesn’t make it go away, and it’s better to be prepared.
Creating a will is very inexpensive and can make a huge difference for the loved ones you leave behind.
You’ll not only need to create a will that lays out death benefits and who you leave your estate to, but you will also need to create an advance directive or living will where you list what you would like to happen in a medical situation where you are unresponsive or incapable of making your own medical decisions.
Life is full of uncertainties, and if you have a family to think about, they can cause a lot of distress. By taking some of these steps, you can feel better knowing you’re providing a brighter, more secure future for your family.Facebook.com/doable.finance