There is always lots of news and information in the media about saving, budgeting, earning more and growing your money. But what about protecting your wealth? It’s a topic less discussed but equally as important. Making a will is imperative to protect your finances and ensure your loved ones are taken care of when you pass away.
Name an executor to distribute your assets – everything you own – to your beneficiaries and instruct a lawyer to draft your will. Build an emergency fund. Save at least 3-6 months of expenses in an easily accessible savings account to draw upon in genuine financial emergencies, such as a health problem or your car breaks down or a job loss.
Set up a trust. A trustor gives another party, known as the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary, useful for holding assets for minors and avoiding lengthy court procedures.
Purchase the appropriate amount of insurance. Term life insurance, critical illness and income protection are all useful, depending on your circumstances. They can provide cover if you lose your income or develop a serious health condition.
Establish good discipline, goals and habits. Set a budget, pay off high interest debt and set financial goals.
Track your income and spending and aim to save and invest part of your income every month.