Let’s face it, we live in an unpredictable world and we never know when something bad is going to come our way. In order to best prevent a financial catastrophe from happening you want to make sure you know how to best protect your money. Money & Markets is a great resource for tips regarding safeguarding your assets. You want to make sure you are protected for the large financial ruin that could possibly occur to your home or health which can greatly impact your financial situation. Such a catastrophic event might be a natural disaster that takes out your home, or a severe car accident leaving you with medical bills galore.
One important way to protect yourself and your money is through getting the right kind of insurance. There are various types of insurance that are important to consider getting. Disability insurance is good if you ever find yourself unable to work because of physical limitations. Sometimes the government can help you cover yourself as well as receiving employer help, but this isn’t always a guarantee and it could take months to kick in. You want to make sure you are covered at the onset. Health insurance is another way you can protect yourself. Regardless if you are overall a very healthy individual, it is important to always have health insurance because you never know when one accident can wipe you out financially and be a huge burden for years and years to come.
Health related costs are not cheap. Just going to the doctor for a checkup can cost like $200. A third great type of insurance is property insurance. Chances are your home is your greatest asset so why not protect it. Along the same lines is car insurance. This can come in handy since driving a car is a liability and you never know when you may get into an accident. You can take all the precautions in the world, but you are still at the mercy of another driver. In addition to making sure you utilize insurance to cover yourself and your money, another great tip is to always have an emergency fund. A nice cushion to have as an emergency fund is about 3 months. You can start building this fund by taking a percentage out of every paycheck and laying it aside for a rainy day. You never know when you could experience a job loss, or something similar that leaves you strapped financially.
Make a commitment to yourself that you will not touch this fund unless it is a true emergency. Make sure your emergency fund is up to date. If you are blessed with a salary increase, make sure your emergency fund increases likewise. A last thing you want to be wary of in order to protect yourself and your money is identity fraud. Tips to help with this include being careful when giving out your social security number, being careful when working at a public computer, regularly changing any passwords you have, paying more with a credit card than debit card because credit offers more protection, shred any documents containing financial information and regularly reviewing your credit report. The last thing you want is some psycho pretending to be you and ruining your life financially.