This post brought to you by Super Claims Australia
As the world still recovers from the Global Financial Crisis, even six years later, providing for our families is one of the hardest but most important tasks we have before us.
We need to not only put a roof above their heads and food on the table, but also ensure we have enough financial back-up should an unexpected emergency strike. Here are five simple ways to provide financially for your family:
The first thing you should look into is your superannuation package. As pensions become ever scarcer, people are going to have to look at self-retiree possibilities, including superannuation. If you don’t have a super package or you need to make a claim on your existing package, take some advice from professionals such as Super Claims Australia to see what you should do.
Just as you set up automatic payments for regular bills, create a new savings account and have money regularly transferred into it. You can keep it as a savings device so that, when retirement comes, there is a nice nest egg, or use it for major bills that come once or twice a year and usually prove to be a burden on the budget. Whatever you use it for, try to forget it is there until its intended purpose comes around.
Have an emergency plan
Make sure your will, life insurance and other ‘fall-back’ measures are in place and up-to-date. Should you be injured or unable to work for a lengthy period, workers’ compensation and other government schemes will last only so long. You might need to have private scheme in place to at least supplement any employer or government compensation. And should you die from something that is unrelated to work, your will should stipulate how to dispose of your assets and look after your family. If you don’t have a will, get one as soon as possible.
Savings are wonderful (and important) but they aren’t the only way to ensure you and your family enjoy a prosperous future. Have you ever thought of splitting your hard earned cash into different investment streams? Consider keeping some money in a high interest-earning savings account, while putting some into property and a bit more into shares. That way when the markets or interest rates drop in one area, you should still be earning in another. It will also mean a collapse in, for example, the share market, isn’t going to completely wipe out your earning capacity.
Always look at your net worth, with an eye on how to make it grow. Some people turn hobbies into profitable side businesses. Often called entrepreneurs, these are people who look at all the possibilities in life and grab any opportunity to make a buck. Similarly, reducing your debt can also grow your net worth. If you think the house you have is far too big for your purposes, down size. If you don’t really need the V8 muscle car in your garage, consider trading it in for a smaller model.
The trick to providing for your family’s future, particularly in tough economic times, is to not let the unknown worry you and instead consider your options. It’s not about taking risks, it’s about grasping opportunities that come your way.
Car and house image courtesy of suphakit73 at FreeDigitalPhotos.net – Emergency image courtesy of artur84 at FreeDigitalPhotos.net