Lots of us work very hard to protect our money, whether with savings, wise investments or just being budget savvy. When we’ve worked hard for our money, having to pay out after a disaster that we can’t control can be very upsetting and frustrating. Whether you’ve had to unexpectedly pay out some money after a flood at home or you’ve suddenly found yourself out of work, there are some ways to protect your hard-earned cash.
Always Have Solid Insurance Coverage
It’s essential that you cover yourself against disaster with some solid insurance coverage. Check your current policies to make sure you’re prepared for the worst and won’t be caught out.
At minimum, you should always insure your home and your possessions. Take out coverage that covers for common household issues like plumbing leaks, the boiler giving up, and break-ins. If you have more valuable items like expensive electronics, quality bikes or a lot of jewellery, you should add them separately to your insurance to make sure they’re covered, as these are not always included in standard policies. Check to see if your phone or other devices are covered if they are lost, stolen or damaged when you’re out of the house, as this is not always covered.
If you drive, take out car insurance. Shop around for a good deal, and look for affordable premiums. You want to be covered in the case of accidents, damage and repairs.
If you have children or other dependants, think about taking out a life insurance policy. While it isn’t pleasant to think about what will happen after we’re gone, it’s also important to make arrangements for your loved ones and those who rely on you. Life insurance can help to over medical bills, funeral costs and other expenses after a death.
Create an Emergency Savings Fund
Savings can offer you a safety net if you lose your job or find yourself unable to earn. Aim to save between three and six months worth of monthly expenses. If you are made redundant or get fired, this fund will keep you going while you look for another job.
It’s a good plan to have some emergency funds set aside for unexpected costs. This could help you if the washing machine suddenly breaks down and needs replacing, the dog needs expensive surgery at the vet or the car needs some costly TLC.
If you’re living with a partner, having an emergency fund may also be wise in case of a breakup. It’s not nice to think about, but if you split up, you don’t want to be unable to move out because you can’t afford it.
Be Prepared for Accidents
A car accident can be one of the mostly disasters you can have. From paying out insurance premiums or for car repairs, to losing your ability to earn if you rely on your car for work or were injured, you could easily find yourself severely out of pocket.
Your car insurance will help you here. Make sure you’ve opted for a policy with premiums you can actually afford, and check exactly what you’re covered for.
If you’ve had to take time off work, speak to your boss about paid leave. Whether you’re off recovering from injury or emotional distress, you may be entitled to some paid sick days, so you’re not missing out on your salary while you’re away from the office. Arrange this as soon as you can, so you have one less thing to worry about.
Find someone to advise you about car accident law to see what costs you may be able to claim back on insurance, whether you may be able to seek compensation and what other actions you may be able to take to protect your bank account from a hammering.
Keep Important Documents Safe
We all know we should store important documents like insurance policies, marriage certificates and bank statements, but most of us just keep these in a cupboard at home. This is usually fine, but what if your home is damaged or destroyed in a flood or a fire? Your documents would be lost too.
Put all the important documents in a file to keep them all together. Add account numbers and the phone numbers for important people like your insurers. Scan all these documents and print a second copy to keep somewhere outside of your home, like with a relative. Save a copy on your computer too, and either email them to yourself or save them on the cloud. This way, if you lose the original copies, you can still access everything you’ll need.
Tackle Small Problems Before They Escalate
Take care of you, your home and your car. If you’re looking after these important things, it will be much easier to spot small problems while they’re still easily and affordably fixable. Catching these issues early can save you on bigger repairs and medical bills later on. For example, it’s always cheaper to have a cavity filled than to have a root canal. It will be cheaper to repair a leaking pipe than cope with flood damage if that pipe bursts. Try to keep on top of your health, with a good diet and exercise routine. If illness takes you out of work, it’s easy to fall into financial difficulties.
Try to invest time and money into keeping on top of these small problems, and keep your home, car and body running smoothly, and not costing you a bomb. It might seem that making little repairs is costly, but in the long run, this approach will save you money. As an added bonus, little problems are far less stressful to deal with than a major catastrophe with your home or car.
Being prepared for the worst might mean you’re forced to think about things you don’t want to, but it could really help you and your family if the future turns badly for you. Know where to ask for help, store your paperwork safely, and be insurance savvy.