If you’re ever in the position where you have to deal with financial loss it can be one of the hardest set of circumstances to deal with. However, if you are proactive and take steps to look after your finances there are ways you can avoid it happening to you. Below are some excellent ways you can prevent financial loss.
The most essential forms of insurance you should have are:
- Home insurance
- Health insurance
- Car insurance
With good coverage this should help if you are ever unfortunate enough to be in a car accident or have a serious health scare as not only the stress can bring you down but you will also get a seriously large unplanned financial burden.
2. Home security system
Even with insurance, if you are ever broken into this will cost you heaps in cash. Robbers can take items you probably didn’t even think to cover and then insurance companies won’t cover them. Install a home security system to avoid this ever happening. Another upside is it will also save you big when it comes to looking at home insurance premiums as well as being a visual turnoff to any potential robber.
Having a savings account is paramount and in it aim to have at least six months’ worth of living expenses. For example, if you mortgage, bills and living expenses equals $5,000 per month, aim to have at least $30,000 in your savings account. If you are married and have children, try to stretch this up to 12 months’ worth. With a healthy and stable savings account, should the unfortunate or unexpected ever happen at least you have cash aside for it to prevent financial loss.
4. Well maintained car
All it takes, your fault or not, is one car accident and this can not only put you in hospital and out or work losing your income but obvious financial stresses, especially if you are without insurance. Make it a rule to enforce safe driving and keep your car maintained to avoid as best you can accidents or problems with your vehicle. Take the car in for those routine fixes and inspections to make sure it’s safe and reliable.
5. Eat well
If you want to save money and to prevent financial loss in the future then really focus on eating well. As you continue to age, with a poor diet you will continue to deal with all sorts of health issues. In order to fix this, start consuming heaps of fruits and vegetables. Even possible consider vegetarian meals because it’s both a great way to protect your long term health but also a very easy and fulfilling way to eat.
6. Review your policies
Living in an ever changing economy and environment whilst it’s great if you already have insurances be sure to review them as time goes on as things don’t always stay the same and what was good for you and your lifestyle requirements may have been suitable three years ago it could now be redundant or there could be a multitude of better options out there for you. With deregulation allowing more competitors consumes have so many choices, make sure you choose wisely to help you to prevent financial loss in the future.
7. Excellent lawyer with a proven track record
Company owner or high net worth individual? Invest with a strong qualified lawyer. With the right advice on your side you can protect your future from those that may want to ever cause you harm, and typically the more money you have, the more surprises you may encounter.
8. Perfect credit
In order to keep a high credit score consider these two crucial factors:
- Hold no loans or credit cards
- Always pay all bills on or before time
Not the hardest points to adhere to but if you are ever in the position where you do need to borrow for any reason, having a perfect credit file makes it simple.
9. Secure your belongings
Will use an analogy of that busy mum at the grocery store that may place her purse or handbag on the top of the trolley. As she looks at a product in the aisle for a moment, any qualified thief only needs a blink of the eye to be able to grab it without her even knowing. Sadly, this happens more times than you’d be aware of. Thieves are opportunistic and keep a sharp eye out just for situations like this. So whenever you are travelling with your purse, wallet or handbag, always make sure they are secure and on yourself to prevent financial loss.
As you’ll see to prevent financial loss isn’t that difficult. It just means being both proactive in your decisions and the ability the make sure the circumstances you are currently in won’t lead you down a path of any type of financial loss.
To prevent financial loss simply stay sharp, secured and safe.