You never know when a financial emergency could hit. Therefore, you want to start planning today to keep yourself and your family safe from the worst that life can throw at you. What are some things that you want to start planning for today?
Buy Insurance
Flood insurance will help pay for any damage done to your house or other property in a flood. Life insurance can help you provide for your family in the event that you are hurt or killed. A life insurance policy may provide money to help pay the mortgage on your house or your child's education. Having health insurance can be the difference between spending $10,000 an hour in the hospital or paying $500 to get adequate care.
Retain an Attorney
Having a good attorney can keep your family on solid financial ground if something bad were to happen. When speaking to Ianniello Anderson, P.C., an attorney, he mentioned to me that if your small business were to be sued, your attorney may be able to keep the judge from ordering that your house is liquidated to pay for damages done to the defendant (this is especially important for those of us who run a business out of our homes). If you are ever convicted of a DUI, you could pay fines in excess of $5,000. You could also lose money due to missed work if confined to jail.
Have an Estate Plan
Where would your money go if you were to die? Would it go to your children as you wanted it to, or would a judge order that your wife gets all the money before she leaves for Vegas? By putting your money in a trust, the government cannot impose estate taxes and creditors cannot use the money to pay off any debt that you may owe. If you have millions of dollars in money or assets, you could save as much as $389,000 or more for each million you have by not having that money taxed at the maximum 38.9 percent federal income tax bracket.
Build an Emergency Savings Fund
Putting money away each time you or your spouse gets paid can help cushion the blow from a job loss or medical expenses that aren't covered by your insurance policy. Experts recommend that a family have at least eight months worth of savings at all times. To help make it easier to save, money can be deducted from each paycheck and put in a separate savings account.
Having insurance, putting your money into a trust and having a good attorney could all be moves that save your family thousands of dollars. Whether your family is well-to-do or is squarely in the middle class, making these moves can keep you and your family from going into extreme debt and living on the streets.