The world can be a very uncertain and precarious place, especially nowadays, with geo-political wars, climate change, and the loss of long-term job security. Current events challenge us to adapt to changing conditions in creative ways. Think about protecting your future income and ease those money worries. Here are some tips; as always, consult your financial planner for tailored assistance.
Saving Safety Net
A saving safety net is a financial nest egg that covers the basic expenses of your lifestyle in the event of a crisis such as an illness or injury. Experts recommend that a saving safety net should cover between three and six months of expenses, giving you enough time to return to work.
A saving safety net is an excellent idea, but it’s not always the easiest thing to organize. Most people need to save for their annual holidays, their pensions, and their children’s futures. Start small or use a side hustle to build up the funds. These funds can then accrue interest over time.
Income Insurance
If you are struggling to create a saving safety net, one alternative is to sign up for income protection insurance. That said, some people use income insurance in conjunction with a safety net to cover them for periods longer than six months if they are affected by a serious illness.
Income insurance requires a monthly premium. It’s worth shopping around for an insurance deal that suits your budget or a lawyer that can fight your corner in the event of an industrial accident. For instance, a Bicycle Accident Lawyer is dedicated to winning bicycle accident cases.
Critical Illness Cover
There’s a reason so many people have health insurance because health issues in middle and later life are more common and hard to avoid. Illness can arrive at any time and prevent you from working for months or years, depending on the condition. Critical illness cover is an option.
Critical illness cover is one of the best ways to protect your future income. Again, it’s best to shop around and find the best deals and cover the premium you want to pay. Immediate cover is possible but requires a higher monthly premium. Most cover pays out after around four weeks.
Side Hustles
If you’re like most people, you spend most of your life working and earning the money needed to fund your lifestyle. If you struggle to save extra income for a safety net, you might need a side hustle to support your future income. The good news is that side hustles are easy to set up.
Popular side hustles include selling things on e-commerce platforms, dropshipping businesses, print-on-demand businesses, selling art, or freelancing. Use your side hustle to build up your saving safety net until you have six months of cover. Then you can invest or save for other things.
Passive Income
Side hustles are an excellent idea, but a better alternative is a passive income stream. Passive income is exactly the same as a side hustle, but it requires much less of your time and brings in a reliable source of income that you can save or invest. Develop side hustles into passive income.