Big corporations have a name for it: “risk management.” There’s value in thinking ahead and although it may seem dark to think of the worst-case scenario, planning for the future is just a smart thing to do.
If you have your health…
They say if you have your health, you have everything. The older we get, the truer that feels, especially if there are any health issues plaguing us along the way. Prevention includes finding and seeing a doctor, dentist and any other medical specialist you need to stay healthy. If something seems amiss, check it out. Early detection saves lives.
When it comes to our homes, we need to have the same risk management approach. Proper insurance coverage is a must. Protect your assets by filming your belongings and storing that information in a file on the cloud. In the event of disaster, you’ll have a clear inventory of your treasures, and you’ll be able to file your claim accordingly. Make sure you have both fire and flood protection if it’s available.
Home maintenance is another “hidden value” of prevention. Keeping your home safe and up to code is a sound investment. Even if it’s your forever home, updating the interior, landscaping and roof maintenance are investments worth making. If there’s a faucet that needs to be replaced, or a wall that needs to be repaired, the sooner the better.
Assets minus liabilities
Your balance sheet may include vehicles, so it’s a good idea to keep those vehicles in top shape. Make those oil changes right on time. Keep your tires inflated at their recommended pressure. Keep your car clean and shiny and invest in detailing if you have kiddos who spill on a regular basis in the back seat. This isn’t just because it will increase your resale value. You deserve to enjoy a clean, beautiful car.
Then take a look at your finances. Do you have everything in place that you need? Start with an emergency fund. You can build it up slowly but be consistent, contributing what you can to prepare for that proverbial rainy day. Make it an automatic withdrawal and do your best to keep your hands off that money so that if and when an unexpected expense hits, you aren’t blind-sided. Pay off debt so you aren’t a slave to your creditors. Again, slow but sure wins the race.
If you’re still working, take advantage of that matching contribution to your 401(k) or 403(b). Set up your own retirement accounts in addition to anything provided by an employer. If you’re self-employed, there are options for making contributions, too. Consult a financial planner, and if you are interested in a fee-only planner, contact the National Association of Personal Financial Advisors (NAPFA), www.napfa.org.
