The idea of being spontaneous and living in the moment is romantic and exciting, but sometimes, you have put your practical hat on and realize that life is unpredictable. Although none of us ever want to imagine going through life-changing events or sustaining serious injuries, the reality is that things happen, usually when we least expect them. If you haven’t already started thinking about your finances and your future, hopefully, this guide will encourage you to do a little forward planning.
Saving for the future
You may be young, fit, and full of beans now, but the sad truth is that none of us can predict what’s going to happen tomorrow, let alone next year or in a decade’s time. Our health is often something we take for granted, and it’s easy to assume that you’ll be physically capable of working for the next 20, 30 or 40 years. You may have a stable income now, but ask yourself if you could cope if you were involved in an accident or you developed an illness that meant that you had to change job or give up work completely. No matter whether you’re in your 20’s or your 50’s, it’s always beneficial to put money aside. If you haven’t already got a savings account, open one now and start saving. Even if you only deposit a small amount every month, you’ll have a cushion if things don’t go to plan.
Protecting your income and knowing your rights
If you have an employment contract, it’s important to take the time to read it. Do you know what would happen if you were to take a prolonged period of time off sick? What would you be entitled to claim financially and how long would your employer pay out? If you’re unsure of your rights, ask your employer for more information and read the contract carefully, including the small print. If you sustain injuries at work, there is a chance that you could claim compensation provided that you can prove that somebody else was negligent. If this is the case, it’s wise to contact legal experts like Benedict Morelli to find out more. Although compensation could give you financial stability in years to come, it’s worth remembering that it takes time to process claims. If you’re self-employed, and you don’t have an employment contract, it’s beneficial to look into means of protecting your earnings, such as illness cover and income protection insurance.
Unfortunately, nobody can bank on enjoying good health forever, and it’s important to plan ahead, especially if you have dependents. If you don’t already have life insurance, it’s worth taking a few minutes to shop around for policies and learn more about what different plans include and how they could benefit you.
Many of us like to focus on the present, especially when it comes to our finances. It’s important to live for the moment and seize the day, but it’s also worth devoting a little time and attention to planning for the future. Think carefully about how you would cope if you couldn’t depend on a stable income or your health deteriorated. Consider taking out insurance policies, learn more about your employee rights and start putting money aside.