Do you know what your most valuable asset is? It is neither your home nor your car. It’s your income. Think of yourself as a prime money-making machine that will mint millions before retirement. The amount of cash that you will make will pay off all your other assets and take care of your household expenses too.
It is, however, possible to forget that your ability to make money did not come cheap. You are a product of years and years of learning. Your parents have also spent a large chunk of their income, to ensure that you can support not just yourself, but the coming generation as well. It is incredible just how much time and money goes into ensuring that you can generate an income.
Like many other income earners, you might forget to protect your most valuable asset. It is often easy to protect the things that you purchase. You will, for instance, pay insurance for your new car. Shouldn’t you also secure your earnings as well? Below are three ways that you can secure your income
A breadwinner’s job loss, sudden injury, or illness can have devastating effects on their dependents. It is a fact one in ten workers will need an extended sick leave at least once in their lifetime. The bills will begin to pile, and mortgage or rent payments that were once done on time will become a big problem. If you are one of the few lucky workers, then you have state benefits to back you up, should you suddenly find yourself without an income.
However, a drop in income will most definitely lower you and your family’s standard of living. Some employers do have useful sick pay schemes. You should, nevertheless, pay for income protection to ensure that you can access regular pay should you need to be away from work for an extended period.
Additionally, you can take an employment policy or an accident or critical illness cover. Income protection insurance products can give you at least 80% of your salary until you are well enough to work. A critical illness or injury cover, on the other hand, will pay a lump sum amount after a period of illness. Alternatively, take a life cover whose payout after your death should keep your family on track.
Financial experts say that you should have at least three to six months of your living expenses safely stowed away in a rainy day account. If you, however, can squirrel away at least a year’s worth of expenses, then you will be on firmer ground should your earning ability diminish. Opening the best high-interest savings account will also ensure that in the event of an emergency, you have financial support.
A well-funded kitty can also ensure that you can stay at work should the vehicle that takes to work, for instance, breakdown.
You will have enough cash at hand to solve medical emergencies or job losses should the worst happen. The savings will help you to stay on track in your job search, minimizing your level of stress.
If you are single, your income is protected from the adverse effects of a divorce. If you are married and happy, then your income is safe too. If you, however, are married and not satisfied, you need to find a way of turning your situation around if you want to protect your greatest asset.
Do you know that a divorce can rob you of at least 75% of your assets?
You might not only be forced to give away half of what you own, but you will need to pay your shyster lawyer as well. They do not come cheap. The divorce could also entail a lifetime of child and alimony support, that will cut deeply into your earnings. If your marriage is on the rocks, ask for help from a qualified therapist. If you, nonetheless, have to go through it, protect your income by seeking mediation.