Don’t worry, this won’t be a long lecture or class session but there are some things that I believe are very important and that everyone should know. So let’s get down to the basics, or the fundamentals of personal finance. With all the information that is floating on the web concerning the financial world it’s hard to know which one source to listen to or which article has the correct information. With that being said, what I wanted to do is breakdown some of the main items that you should have in order to have a solid foundation for your financial well-being.
Back Up Plan: Life happens and it happens when you least expect it. These funds are your savings – the money you are stashing away and will act as emergency funds in case anything unfortunate should occur. Whether you use it to continue paying your mortgage after you’ve been laid off or to pay for a medical emergency, these funds are a necessity for yours and your family’s well-being.
Working Retirement: That’s right folks, we’re talking about your 401k plan! If your work-place offers, you must contribute. It’s as simple as that. Planning and saving for your retirement is a must – and it must be done now, don’t hold off for any reason.
The Prepper: If you haven’t already it’s time to setup your Power of Attorney (POA). If you were unable to handle your own affairs as a result of an accident, illness or even absence, the POA gives your “agent” the power to make decisions on your behalf and handle your affairs as you would yourself.
The Today Game: Life isn’t a game but sometimes it can be, and the play can change on a seconds notice. It’s time to setup your living will. Your living will states your wishes regarding life support in the event that you are in a persistent vegetative state or irreversible coma and cannot communicate your wishes.
The End Game: This is your Last Will and Testament. This dictates the way your assets will be distributed and utilized following your death. Although setting up a Trust might be a better and more efficient option for you, it may not be the case for all individuals. At the very least, it’s important to have a will setup to ensure that even after you’re gone, any assets are divided as you wish.
I might be one of those “extreme financial preppers” but I know that by having these financial fundamentals in place, it gives me a sturdy platform to stand on. I can have the peace of mind knowing that these items are in place and that if anything ever happens, whatever the situation may be, I will have everything in place so my family doesn’t have to worry about anything. If you need some guidance or advice on any of these, or how to become an “extreme financial prepper” like me, just pick up the phone or shoot me an email. I’m always here.
Stay well and start preparing today!