Achieving Financial Security with Smart Planning and Insurance

While it's never going to be anyone's favorite topic, bad things do happen and at any time anyone can die or be put into some other sort of crisis. Job loss, layoff, injury, debt and even death -- these are all things that can strike suddenly and without warning.

While nothing can fully prepare you for tragedy, there are ways to help secure you and your family's stability in the event of a financial crisis. Below are different things to help you prepare for financial disaster and offer advice to further protect the stability of your lifestyle.

Emergency Fund

Whether you keep a stack of bills in your home safe or have built-up a nice savings, it is important to have some emergency money in case of an unplanned layoff, job loss, injury or other crisis.

Having access to a few months of pay can help with surprise medical bills, mechanic fees, or other expenses that you can cover in case you lose your job. Most financial experts recommend between three and four months of wages should be saves in your emergency fund. It may take you some time to do this but putting aside money each month will begin to build it up faster than you think.

Insurance Coverage

There are many types of insurance, including liability, auto, homeowners, disability, life, fire, flood and earthquake just to name a few. You can even ensure your electronics. As a solution, insurance really can help maintain stability and security in your life even in the face of a major crisis.

For example, if you are injured and suddenly unable to work, then having disability insurance can really save you over the next few months. Should you pass suddenly, life insurance will help your family with all of the expenses that come with a death and help them get by financially when they suddenly may not have the main income.

Making Smart Money Decisions

One of the best things you can do is establish good financial habits, which are the key to managing any crisis that may come up later. Always be sensible in your actions to avoid building up debts or putting your family in a disastrous financial situation. A new car may look nice in the driveway, but if you can't make the payments every month then you are only hurting yourself.

It's not just the big things that can hurt you; little things like credit cards can really hurt you. For example, it is very easy to build up your credit limit over just a few years. While you may have started with a $1,200 limit it can climb to $12,000 before you now it. While you still may be able to make the minimum payments or even a bit more, what happens if you lose your job? 

At Linton and Associates, we urge families to take financial security very seriously to keep them out of debt and maintain stability in case any crisis should ever arise. For more information on our insurance plans and how to keep your family financially stable, please feel free to contact us today.