Clever Ways To Protect Your Income
Income protection is something a lot of us overlook. What would happen if you found yourself unable to work? Could you survive without your income? What impact would this have on your family? Most people would find it virtually impossible to cope financially. Read on to discover some smart tips on how you can protect your income.
Adopt Money Saving Habits
Pay off debts – The first thing you need to do is pay off any debts you have. Head to https://debtconsolidation.loans if you have numerous debts and you are struggling. Consolidation could make it easier for you.
Look for ways of making money on the side – One of the best ways to protect yourself is to ensure you have several different streams of income. This will minimise the impact if you do lose your job. Read more…
Build an emergency fund – When things are going well, you should save money for a rainy day. Most experts advise saving three month’s worth of money. E.g. if you spend £1,500 a month on rent and living expenses, make sure that your emergency fund has at least £4,500 in it. This then gives you a good three months worth of money to help in the case of an emergency. Read more…
Consider passive streams of income – This relates to income that you will receive regularly on a year-to-year basis. You can find more ideas at https://www.thestreet.com/how-to/make-passive-income-ideas-14682731. You are bound to find something suited to your skill set and lifestyle.
Consider Critical Illness Insurance
You should think about taking out a critical illness insurance policy. This type of insurance will ensure that you are protected should you be seriously injured or if you have become very ill. If you take out critical insurance, and you sustain one of the injuries or illnesses that are covered, you’ll receive a lump sum of cash to ensure that you do not suffer financially due to your inability to work during this period. Every policy is different, but the most common illnesses that are covered include strokes, heart attacks, major organ transplants, cancer, and paralysis.
Acquire Income Protection
Finally, income protection is another type of insurance you are advised to have. This is a form of insurance that pays you if you are not able to work because of illness or injury. With income protection you are paid until you return to work, your retirement, or your death. It is important to note that income protection is not designed to assist those that have been made redundant. It has been created for individuals that are physically unable to work, and payouts are usually determine based on a percentage of how much you earn.
Following the tips in this blog post, you will give yourself the greatest chance of protecting yourself should you be unable to work because of an illness or injury or you have lost your job for any other reason.