Financial self defense is a term used to describe your overall financial well being and planning for the future and unknown. I had the chance to discuss this topic on 1150 AM KKNW radio with Dr. James Gore the host of the New Urban unlimited radio show and JR Gillespie of All Star Financial Insurance. You can listen to our full discussion on financial self defense here:
Should Financial Self Defense Include Creating a Household Budget?
Financial self defense starts with implementing the correct budgeting based on your household income and making sure you are not living outside of your means. By sticking with your budget you can keep an eye on overspending and make sure you are saving something for your future. These days 78% of Americans are living paycheck to paycheck so it’s important to get a financial plan in place so you can put funds away for savings and rainy day.
Should Financial Self Defense Include Obtaining the proper insurance?
Insurance can come in many forms and amounts. Some of the most popular types of insurance include medical insurance, life insurance and disability insurance. Having the proper insurance can insure that your family is taken care of if you are not around or unable to work in the future. For instance if you are a business owner and have an accident which makes you unable to work, having the proper insurance can make sure you still get a paycheck every month even though you are unable to work. Insurance will help you stay on track and stick to your budget so you don’t have to be one of the 78% living paycheck to paycheck.
Should Financial Self Defense Include Business Planning?
If you are a business owner or real estate investor, having your businesses set up as an entity such as an LLC can make sure you will not be liable for business debts should you run your business properly. For example if you are facing collections for a business debt that you are not personally liable on or somebody slips and falls at a property you own and the property is owned by a business, your personal assets would be protected. Proper business planning can save you from having to personally deal with such an emergency and makes sure you can stick to your budget and continue to save for your future.
Should Financial Self Defense Include Estate Planning?
Estate planning is something that everybody should be thinking about. A typical estate plan consists of a will, power of attorney, medical power of attorney and a health directive. Having a will in place will make sure your assets will go where you want them to for the protection of your family when you pass away. A will can also set up a testamentary trust for your children and name guardians so there is no question as to you wishes. A power of attorney makes sure that your finances can be controlled by another should you become incapacitated and medical related documents make sure the right person is making your medical decisions should you not be able to. Having things documents in place avoids confusion by your family should something happen to you and makes sure there are safeguards in place for your estate and is part of the financial self defense strategy.
What Can I Do If I Did Not Utilize a Financial Self Defense Strategy or I Had An Emergency?
It is never too let to start thinking about your financial self defense plan moving forward. You can start be talking to professionals who can set you up on a plan to make sure you are protected moving forward. If you are already in financial distress then there are also options such as chapter 7 bankruptcy, chapter 13 bankruptcy and debt settlement that can get you back on track and in control of your financial future. Once you have a plan for your finances you can start rebuilding your credit and be protected should there be a financial emergency in the future.
If you live in Washington State and are looking for options for how to implement a financial self defense strategy, give Symmes Law Group a call at 206-682-7975 to speak to a financial planning attorney and learn about your options.