How to Protect Your Income When Life Happens

Life can be amazing and fruitful, but it is also sure to come with at least a few negative events that you have to deal with. Preparing in advance can help you to be ready to weather the storms of life, no matter what they may be. While you can’t know what exactly life will send your way, you can take time to prepare so that you can be successful no matter what ends up happening.

Build Up Savings

Your first goal should be to make sure that you have savings available to supplement your lifestyle if you were to lose your job or otherwise experience a decrease in income. It is a good idea to start by building up enough savings to cover you and your household for three months or so. Then, over time, you can build it up even further until you can survive off your savings for a year or more. Setting up automatic transfers into savings can help you to put saving first.

Get Insurance

Insurance can also help to protect you if you end up in a situation where you can no longer work. No one plans on becoming sick or injured, but it can still happen to anyone. In fact, about a quarter of adults will become disabled at some point before retirement. That means that investing in disability insurance is a good idea, no matter where you currently are in your life. Disability insurance can be purchased privately and is sometimes offered by employers as well.

Pay Off Your Debts

If you have a lot of debt, it can be difficult to make things work if you no longer have a job. So in addition to saving and getting appropriate insurance, you should also make sure to pay off your debts. Moving forward, you should also make it a point to live within your means and avoid getting into more debt than you can afford. Staying out of debt will be a huge advantage if you ever find yourself without work.

Protecting your income might not be at the forefront of your mind when you know you have a solid job. But you need to think about it so you can be protected in case your situation changes. Being proactive about your finances can help you to prepare for the future and provide yourself with the security you need to be successful when life happens.

Check out this article on what to consider when selecting workplace health plans!

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