If something where to happen to your partner, do you know where his will is?
If you have a car accident, do you know who to call?
Is your tax being done correctly every year?
I know many of you may think, this isn’t financially stuff but it is. I have to admit, until I met David, I was pretty clueless about what I need to have insured and how. I also hadn’t given much thought to a will and exactly how I would structure it.
Having my own business also means I have had to learn a little bit about business insurance, tax and the general finances of a business. I can say, in all honesty that it is not my favourite part of being an adult but it has to be done right?
I am trying to be more prepared for any eventuality, so I thought I would share some of my tips for being more financially prepared.
- Update your will regularly. When last did you update your will? Just as importantly, do you know where it is? This is such an important document. None of us really want to talk about our mortality but it is so important to make sure that your will is correctly set up, updated and stored in a safe place. It is also a good idea to make sure your children’s guardians know where to find a copy of your will as well as your financial planners details.
- Understand your insurance. David deals with our insurance and I never really took much interest but recently we changed brokers and I was involved in the process. I understand a lot more about what I am covered for and what not. You don’t necessarily need to understand every clause and phrase but understanding the basics is a good idea.
- Know who insures you. Make sure you know who you are insured with. Most insurers offer an emergency number of some kind, make sure you save this number to your phone.
- Get a professional in to do your tax. If you earn a regular monthly income from only one source you could probably do it yourself but honestly I am now of the opinion that this function must be left to the professionals. It not only ensures it gets done once a year, it reduces your risk of penalties.
- Insure your business. If you have a business, however small, make sure you are aware of the various business insurance options. It could end up saving your business.
- Store all your important documents in one place. I have a file on my desk that has all the most important documents in. It makes it easier for me if I need to contact the insurance company, medical aid or our bank.
- Talk to your children! I don’t mean sit down and discuss how much you earn and how much you are spending but your children should be aware of certain things. Encourage them to start saving, as they get older you can discuss things like your will with them.
Sorting your finances out isn’t always fun and it can sometimes be a little boring but it is so vital you stay on top of this and make sure your affairs are always in order and up to date.
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