How to create a financial net for you and your family’s safety?

 


Dealing with unforeseen circumstances can be hard, especially when it affects you and your family financially. Being the earner of your family puts you in a precarious situation, as your family could be left in a lurch financially in your absence. This is why it is essential to provide your family the financial protection it needs. This can be done by creating a financial net to ensure their safety from unpredictable mishaps. There are many ways that you can do this, and, listed below are a few of them which can help you in giving a proper direction on how to begin:

Create an emergency fund:

We are always advised to save a certain amount of money from our income for a rainy day. The main reason behind this is to have enough money for emergencies. The emergency could be of any kind, but having substantial savings to help cope with the cost of that emergency can be relieving. For example, Linda, 35, has been working as a software engineer for more than 8 years. She routinely sets aside a small amount from her monthly income for emergencies. When her mother went through a sudden medical emergency, Linda did not panic about the immediate cost of treatment due to the emergency funds available to her. This is just one example of how having an emergency fund can be beneficial.

Secure your savings:

Harvey, 29, started working at the age of 23. After 2 years of working, Harvey invested in health insurance to secure the well-being of his parents.At the age of 28, Harvey got married. With the prospect of starting a family of his own, and realising that his savings will not be enough to support himself and his family through emergencies, Harvey decided to invest in life insurance policy for family. Depending on his requirements, Harvey felt it was suitable for him to go for a term plan. As mentioned above, having an emergency fund can be beneficial. However, relying solely on it can be disadvantageous as the savings could get depleted in a major emergency. It would be prudent to have an additional layer of financial protection with the help of life insurance. You have the option of going for a term insurance or a whole life insurance based on your needs. To understand more about them, you can reach out to your insurance advisor.

Original Source : How to create a financial net for you and your family’s safety?


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