Say the microwave breaks down, or you suddenly need to pay for plaster on a kids’ broken leg: a ‘slush fund’ of a small amount , maybe $100 that you keep around the house, will come in handy. That account where you keep a few thousand stashed away will come in handy if a relative falls sick and you need some off work suddenly.
These are the more commonly thought of safety nets, but there is another very important option to consider: income protection. What would happen to you if you fell sick or became injured and were unable to work? What would happen to loan repayments, the mortgage, the school fees? You may have a financial buffer but how long would that last? Your ‘slush funds’ will run out before long, however if you had the foresight to insure your income, you can relax knowing that you will still receive a set proportion of your income.
You insure your house, your car and your belongings, surely guaranteeing your income is worth a thought.
Finstyle can help you consider income protection, and talk through your options.
Disclaimer: The postings on this site are my own and don’t necessarily represent the views or opinions of Total Financial Solutions Australia (AFSL# 224954)
This information does not take into account the reader’s objectives, financial situation or needs. For this reason, before you act on this advice, you should consider the appropriateness of the advice taking into account your own objectives, financial situation and needs. Before you make a decision about whether to acquire a financial product, you should obtain and read the product disclosure statement.