Before you can start planning for the future, you need to ensure that your current financial picture is stable and ready for any contingencies that could jeopardize your financial situation. Importance of an Emergency Fund Before putting money toward your investment goal, you first need to create an emergency fund. The emergency fund is there to ensure that you have enough cash on hand to handle any unforeseen expenses that may occur in the future. Experts advise everyone to have approximately three to six months worth of current living expenses saved up in very safe, liquid, short-term investment. Protect Yourself with Insurance Without the proper insurance in place, an unfortunate accident could result in financial devastation for you and your family.
Insurance is designed to provide protection from catastrophic loss.
The continuing increases to the already high cost of health care makes a good health insurance plan essential to your financial security. Active military members and retirees and their survivors have a big advantage here due to the Military Health Care System. Disability insurance is designed to protect one of your most valuable assets - your ability to earn income. Even though protecting your future income stream is very important, many people simply overlook this need for protection. Statistically, the odds of becoming disabled for 90 days or longer are much greater than dying during one's working years.