by Nigel Hilton
Money makes the world go around, and most of us work hard to keep money coming in and our savings topped up. Whether you're a budgeting expert or have bounced back from debt, it’s natural to feel protective over your money. Unfortunately, sometimes a personal crisis can make a real dent in your finances. Whether you’ve been made redundant, the washing machine needs replacing or the roof has started leaking, there are ways to protect yourself from ending up severely out of pocket.
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Never Go Without Insurance
The right insurance should protect you from unexpected issues or problems, so always read the small print carefully to check your coverage.
Home and contents insurance is essential. Your home should be protected in case you need to pay out for repairs or in case of a break-in. Check your policy to make sure valuable items are covered. You may need to separately insure jewellery, expensive bikes or electronics. Make sure you have coverage that will pay out if your phone or other electronics are lost stolen or damaged while you’re out.
If you have dependants, like young children, you should consider a life insurance policy. Nobody wants to think about dying and leaving behind their children, but if you’re prepared, you can make a terrible time a little easier on your family. Help your loved ones to cover the expenses of your death, like medical bills or funeral costs.
Set Up A Savings Account
Aim to have an emergency fund of somewhere between three and six months worth of expenses saved up. This is a safety net to help you recover from any financial disaster. It could be especially useful if you find yourself out of or unable to work for a time. Give yourself the space to seek another job without stressing out about how you’ll keep paying the bills. A good fund of emergency cash will also be useful for those unexpected expenses that happen in life, such as the boiler needing replacing in the middle of Winter, the car needing expensive repairs or the cat needing some pricey treatment from the vet.
If you’re sharing a home with a spouse or partner, try to have your own emergency fund of savings. In the case of a break-up, these savings can help you to get out and not get stuck sharing a home neither of you can afford to move out of. While it’s fun to prepare for, it’s sensible to keep some money back just for you.
Brace For Accidents
In America, around 2.35 million people are injured in car accidents every year. No matter how careful a driver you are, accidents can happen to anyone, and can end up costing you a lot of money, whether you’re paying out for car repairs or you’ve had to take unpaid time off work to recover.
Make sure you have solid car insurance to protect your from costly repairs in a situation like this. You’re looking for affordable premiums and comprehensive coverage.
If you’ve needed time off work, find out if you’re entitled to paid leave. If you’ve taken time off to recover from injuries, you should be able to claim paid sick leave, so you’re still earning while you can’t work.
A car accident settlement could also help cover your costs. Speak to an attorney who can advise you on the best move, and what compensation or insurance claims you may be eligible for.
Take Care Of Small Issues Before They Become Big Ones
Look after your health, your car and your home. By paying close attention, you can spot small problems much more easily, and deal with them promptly before they become bigger issues with expensive solutions.
If the car is making a funny noise, have it looked at by a mechanic before you find yourself with a broken down vehicle. If a pipe is leaking, find a reputable plumber Sydney (or elsewhere more relevant) to get it fixed before it bursts and causes expensive flood damage. Visit your dentist and cough up to have a cavity filled instead of risking ending up in need of a costly root canal. Try to care for your health, as illness can take any of us out of work for a long period.
Stay on top of the little things, although it may feel like you’re always paying out to fix something. Small repairs are much cheaper than big ones, and you can stop problems escalating and leaving you severely out of pocket. Keep your money safe.