Prepping Financially For An Emergency


Fab & Fru 5 Minute Guide #1

 Based on an article by Women & Co.

We’re not trying to be dramatic here, but whether you want to think about it or not, life is bound to throw some curve balls your way.  And when serious emergencies do arise, you’ll be glad you took five minutes now to remind yourself of how to prepare – financially – for the future!

1. INSURANCE

 You might not even be aware that there is insurance beyond auto, homeowners, and health.  NOW is the time to start educating yourself about other policies that can help protect you and your family:

Life Insurance  – Yes, we know, it’s creepy to talk about – scarier NOT to!

Disability Insurance – No matter how invincible you feel, everyone is vulnerable to accidents which can take you out of the workplace for an extended period of time.

Long Term Care Insurance – You know that 100 is the new 60, right? And, yes, hot stuff, someday even YOU may need home aides and nursing home care.  NOW is the time to start thinking about it – it will be way cheaper to get it when you are younger than when you really need it!

2.  EMERGENCY CASH RESERVES

In an ideal world, financial planners advise people to always have a 6-12 month cash reserve available for times of economic uncertainty.  With the economy the way it is, this is easier said than done.  Start adjusting your lifestyle accordingly so you can start saving and be in a position of power – not panic – should emergency strike.  As much as you love your Pilates class, believe us it is worth canceling the gym membership in order to get your financial fitness up to speed!

3.  ESTATE PLAN 

 We know, we know – you’re probably thinking you don’t have much of an “estate’ to plan for!  But an estate plan has nothing to do with living in a mansion.  All of us, no matter what our financial status, should have a legal plan in place in case we become impaired or, you know, dead.  Estate planning includes:

A Will & Testament.  Single or Married, we should all have a will.  We’re assuming you would rather have control over where your money and possessions  – not to mention children! – go in the event of your passing.

Living Will – Like it sounds, it’s something that affects you while you are still living.  This document lets you appoint someone to make medical treatment decisions for you if you cannot do so for yourself.  Maybe even more depressing to think about than the last will and testament, we know, we know.

Power of Attorney/ Health Care Proxy – This person not only can make medical decision on your behalf, but also financial and legal ones.  In other words – choose wisely.  And for goodness sake, remember to update according to major life events like divorces!

For a more in depth look at related issues, check out these articles:

Do You Really Need a Will?

In Case of Emergency

Single Women and Life Insurance

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