Keeping control of your finances is tough. When your bills rise or your car breaks down, a bill that is unplanned for could disrupt your finances. The same goes for major expenses like legal action or repairs to your home. Safeguarding your finances from future harm will ensure you’ve done everything possible to protect yourself should the unexpected happen. Read the following tips to make sure you’ve covered all possible outcomes.
Have your home assessed
When you buy a new home or have lived in your existing home for a while an assessment for any underlying problems could save you money. Some problems are easy to fix when they first appear but left alone can develop into bigger problems that are more expensive to fix. Have everything from your boiler to your roof guttering checked. If a problem presents itself, you’ve got time on your side to tackle it before it gets worse.
Insurance is important for many reasons. There are also different types of insurance that you should look into depending on your current situation. Having health and life insurance will protect you and your family in the event of illness or death while insuring your car will mean that you won’t be the one footing the bill if you were to have a car accident or your vehicle breaks down. Home insurance is also another essential type of insurance, one that could be your savior if your home were to flood or suffer fire damage. Don’t underestimate the benefits of insurance. That monthly/annual expense you begrudge paying could be the thing that saves you from bankruptcy.
You never know when you might need a lawyer. A dispute over a parking ticket or even a personal injury case could find you needing help. Having a family lawyer you know you can trust to help you with any sticky situations or an attorney who can tell you if it’s just a complaint or a valid personal injury case will be able to put your mind at ease when those big problems arise. The insurance discussed above could also help you to cover your legal costs if you were to face a lawsuit.
Many people avoid having a will, perhaps because the thought of dying isn’t something they want to contemplate. Nearly 60% of the population admits that they don’t have a will, even though it could be vital for your family’s future. A will is easy to set up these days, and you can even do them online if you’d prefer. Knowing that your family and assets will be looked after if something were to happen offers security and reassurance, and there are no excuses for not having one.
An emergency fund
It’s likely that you already have something you’re saving for like a vacation or a new car, but having a little pot set aside in case of emergencies or repairs will be an important asset for you and your family. Your rainy day fund can be there if a bill is higher than expected one month or you’re finding yourself paying out for a lot of different things like school trips. Even if you put a small percentage of your monthly pay into an account, you’ll feel more secure knowing it’s there for emergencies.
A budget isn’t just for people who are trying to cut back; it can be useful for any household to work out exactly what is coming in and going out each month. Making a budget is easy, and it can protect you from landing yourself in debt by spending more than you are bringing in. Your budget should take into account your groceries, utilities, entertainment and other bills. What’s left at the end of it should be your savings and disposable income, and you should try and divide that into weekly amounts as well to avoid that last week of the month drought where you’ve spent all of your monthly salary already.
Even if you future-proof your finances, there are still things that are out of your control that you may find yourself needing to pay for. If your savings aren’t enough, there is help available to you to fight financial plights. If you encounter any signs of difficulty, discuss it with your bank or financial advisor – they may be able to help you before things escalate. Planning for the unexpected is a part of responsible household management, and you’ll be grateful you did it if the worst were to happen.