Planning for your financial future doesn’t have to be a burden. Just follow these 10 simple tips and you’ll achieve your financial freedom that will enable you to protect your family.
1. Adopt The 3 P’s
Seek For Professional Advice
When you have health problems, you go to see a doctor. When you need help in legal matters, you see a lawyer. Why wouldn’t you seek for professional advice in matters that concern your finances and your life insurance? Certified financial planners in Burlington will explain you all your available options, so that you can come up with a solid plan to reach your financial goals on both short-term and long-term.
As unrealistic as it may seem, you can plan for the unexpected. A solid financial plan that includes life insurance among other things will offer you the peace of mind that you’ll be able to cope with any emergency you may have to face in the future.
Say No To Procrastination
Regardless of your age or financial situation, today is the bets day to start planning for your financial future. The plan you lay out today will serve as a foundation to build on, in regard to your future financial security.
2. Plan Your Path
How will you know which way to go, if you have to idea where you are? The first step of any financial planning process is to take a honest look at your current financial situation.
3. Put Together A List And Check It Often
When you have to face an emergency situation, the last thing you want is to search for information and documents. If you want emergencies to find you calm and prepared, make sure you prepare yourself in advance, when you are relaxed and you have clarity in thinking. Create your emergency financial plan and make sure you update it as often as needed. Here’s what you should put in your plan:
- Three to six months’ worth of living expenses, saved in a separate bank account that you can easily access.
- A list containing contact details and personal medical records of all members of your family, including blood type, known allergies, chronic medical conditions and current medication. Also include the contact details of your doctor.
- A copy of all your insurance policies, life insurance included.
- If you have children, include a list containing their school or daycare name and contact details. Also, make a list of all adults (with their contact details) who are authorized to pick up your kids from school.
4. Insurance Of Your Family’s Future
If something were to happen to you, how would your family be in terms of financial security? The best way to offer them protection is to ensure you get the right amount of insurance coverage and the right type of policy. You’ll need to update this insurance protection over time. Make sure you review it with a financial advisor every 10 years, or whenever your life takes an unexpected turn such as the birth of a child. For a better understanding of your protection needs, consider using a tool like My Insurance View.
5. Decide What WILL Happen After Your Death
If you haven’t considered to put together a will, it;s time to stop procrastinating. In the event of your death, the laws will determine the division of your wealth, without any consideration for your personal wishes, or for the wishes of your family members. Creating a will is far from being a straightforward endeavor, so consider seeking for professional help.
Writing your will is a great step, but what are you going to put in this will? You should use estate planning tools such as trusts, life insurance and long term care insurance to secure your assets. Estate planning requires professional advice, as it is a too complex matter to tackle on your own. Consider updating your estate plan after each major life event such as death, marriage, and child birth.
6. Get Rid Of Debt!
Finally, the fastest method to gain some financial security is to reduce, or to completely get rid of debt. Make sure, though, that your goal of becoming debt-free is a realistic one. If you can;t do any better than this, consider at least to use a debit card rather than a credit card to pay for your bills.