How to Safeguard Your Assets and Protect Your Financial Well-Being
The arrival of the pandemic shattered a lot of illusions about just how certain life is and how safe we are. One moment we were living out our ordinary existence, trying to navigate busy times but overall getting some enjoyment and joy out of life. Suddenly, the contagion swept the globe and in an instance our lives were turned upside down. Working at the office became working at home. Schools shuttered, and kids did Zoom sessions from their bedrooms. Even simple tasks like getting groceries became onerous, and lots of restaurants and entertainment spaces closed.
One of the lessons from all of these upheavals is that we can’t count on certainty and business as usual. With the pandemic, we also saw immense financial turmoil as industry segments ground to a halt and layoffs became the norm. Fortunately, there are ways that you can shelter yourself from life’s uncertainties and help protect you, your family and the assets that you own. With the right choices, you’ll be able to safeguard what you’ve worked hard for and watch out for and take care of your financial well-being too.
Get The Right Insurance Coverage
To fully protect yourself and your assets, you’ll need a variety of insurance coverage. You’ll want automobile insurance for your car, and a homeowners or renters policy to cover where you live and what you own. Getting a liability policy with a high limit is also a great idea. You might also need specialized policies, if you travel frequently, have pets or own recreational vehicles or watercraft.
If you work with an independent insurance agency, they’ll be able to get you quotes from different insurance companies so you get the coverage you need at an affordable price. They can also address your health insurance needs, from basic health plans to medicare, long term care and disability insurance.
Refinance or Pay Down Your Existing Debt
In order to protect yourself from future financial uncertainty, it’s a good idea to take an aggressive approach to refinancing or paying down your debt. Many families are burdened by high interest rate credit cards that have minimum payment plans that keep your paying nearly eternally. Look for cards with great introductory balance transfer offers so you can give yourself a chance to take care of that debt.
Another area of concern for many individuals or families are their considerable student loans. Refinancing your individual loans into a single, consolidation loan may reduce your monthly payment and lower what you will pay over time. You might also look into specialized loan forgiveness programs that are offered on some government-originated student loans.
Build Up Your Safety Fund
To truly protect yourself financially, you’ll also need to build up your nest egg and make sure you have a safety fund that could carry you through troubled times. It’s hard for most people to increase their savings from the wages they currently make, so it might be necessary to come up with an alternate plan.
Consider starting a side hustle to bring in extra income that can be earmarked to your safety fund. As you build your side hustle or invest hours in working this secondary business, you’ll generate much needed extra cash and give yourself an additional income stream that will help reduce your financial risk.