When you’re focused on saving money and boosting your finances in the present, it’s easy to get caught in the day-to-day minutiae. While this is entirely understandable, one of the most important elements of true financial savviness is to do what you can to future-proof your finances wherever possible – and here are three essentials to keep in mind when seeking to do just that…
1) Watch the economy
Focusing on your finances is important, but it’s also helpful to keep an eye on the broader national picture. Take the time to read economics-based blogs and track the health of key financial indicators such as the stock market. If you do this, you’ll be able to spot the signs of storm clouds on the horizon, which in turn allows you to take action and protect your own finances before a nationwide problem dawns.
2) Divide your funds
Many people hold all of their financial products with a single bank or institution, an option that is made all the more attractive by loyalty bonuses. However, this can be problematic; if your bank fails, every cent you own will be impacted, which is less than ideal. It’s preferable to divide your funds across a number of different providers, so you always have options should one bank or institution fall into difficulty.
3) Buy insurance
Insurance could be considered the single best method of future-proofing your finances, helping to protect against calamity and ensure you and your family always have access to funds you’ll need so you can recover from unexpected expenses. As well as the usual insurance options, such as car insurance and business insurance, it’s also worth considering purchasing life insurance – if you have never bought this type of insurance before, the infographic below is the perfect primer to get you started…
Infographic Design By: Do I need life insurance