It seems there are far too many ways people and families can find themselves ensnared by financial problems. Very often, even competent long-term planning doesn’t help avoid these kinds of pitfalls entirely. There always seem to be some kinds of problems that most people don’t even think about until they are looking at a potential disaster. Here are 5 tips to help you family avoid a financial problems.
Because home, life, auto and other kinds of insurance policies can be difficult to understand, some financial planners recommend a catch-all liability policy with a low deductible that can be used to cover any unusual event the rest of your insurance portfolio might miss. These policies can be expensive, but they are often very responsive in a time-sensitive crisis.
Families that can afford to self-finance medium-sized purchases might not need this particular item, but for individuals and families that don’t have substantial savings, an open unencumbered line of credit with a zero balance tucked away somewhere can be a source of great comfort and a major shield against financial shenanigans in the event your family needs short-term cash in a hurry. Some financial advisors recommend $10,000 or more. Obviously the more the better.
It’s no surprise that in the current financial climate, people are more than a little worried about identity theft and compromised financial accounts at banks or credit issuers. While a credit monitoring service can’t shield you from every potential pitfall, it can be a great way to keep tabs on your credit score, open accounts and any unusual activity from one place. Given the relatively inexpensive cost, it’s an easy choice.
Almost all families either have homeowner’s insurance or are considering buying a policy. Some residential neighborhoods require it, and for good reason. What many people miss are two things that can turn an insurance settlement into a major problem. First, you need to be sure your deductible is manageable so you can actually reach your coverage. A large enough claim that is short on cash to cover the deductible can easily cost you your house. The second item is to make sure you know the difference between replacement value and your policy limit. This can be perilous, especially if you keep valuables on your property. Consider Colling Insurance Services, Inc to find an insurance policy that will work for you and your family.
The fastest way to create a financial crisis is to disappear, even for a short period of time. Regular communication with your creditors, bank and other financial counterparties is not optional. If people don’t know what you’re doing, they have no way of knowing otherwise, and that can lead to expensive misunderstandings.
Financial disaster is something everyone wants to avoid. Given the hard work you’ve done to earn your money, it stands to reason you would invest just a little more effort to protect it.