Your income is one of the most essential things in your life and the lives of your family. Without money coming in, there is no way to pay the bills. You will lose your utilities, home, food, and even the basic necessities that make life enjoyable. Without a good income, you could even end up living on the streets, with nowhere but a shelter to hang your hat. Not a place that any of you want to find yourself in.
One of the most common ways to keep your income is to play the game with your employer, putting up with everything they dish out. For most of us, that is simply a part of life that must be dealt with because without a good job, there will not be any income. But what happens if you get injured or disabled and can no longer work?
That is a great question that not many have an answer to. That is why we are here to discuss some of the best tips on how to safeguard your income. So, let’s jump right in and get to it.
- Savings – It may be hard to put some money into a savings account or a lockbox without using it when needed. The point is to build up some cash from every check and keep it until needed. If you lose your income due to an injury, lay-off, or personal issues, you can dip into the savings box until you get yourself back on your feet. This type of savings can be a great way to keep your head above water for a short time, but that is the drawback of this safeguard. It is only meant to help for a short time. It is not a long-term solution to the income problem. You can look at it this way; the savings you built up can be a great asset to fall back on at first, but if you do not have any other ways to protect your income in place, your savings will quickly be diminished down to nothing.
- Income Protection Insurance – Depending upon your policy, an income protection insurance policy can cover around 70% of your income if you have become temporarily disabled or injured to the point of being unable to work. How it works is similar to a paycheck, but it only comes once a month for the length of time that the contract states. This is much more helpful than getting a lump sum check that you have to budget and keep in an account. The monthly checks can fall into the budget you already have set up, with some of the unimportant payments being put on temporary holds if needed, such as money set aside for a family vacation. You will need to check with your specific iSelect income protection insurance to see how much it will pay and how long they will pay it.
- Improve Your Worth – One of the best ways to protect your income is to ensure you are valuable to your employer. Continue learning about your specific industry, even if you take home education classes or travel to seminars on your days off. The more knowledgeable you are, the more worth you will have. This will help guarantee that you have a job with someone else who can use your knowledge, if not at your current location. It will also help you with promotions, raises, and overtime. The more valuable you are, the more work they will offer you, even if it means paying extra cash for overtime.
- Improve Your Income – Do not ever get comfortable in your job, even if you own your own company. Always be on the lookout for a better opportunity or a way to expand your current business. Even if you have to transfer to a different location or another company, you never want to sit back in your current job and watch everyone else pass you by. Keep the same drive alive that you used to get to your current position because opportunities are always available to improve your income.
What matters the most when trying to protect your income is never giving up the fight to improve your financial wealth. There are many ways to build wealth, such as buying a home and letting the equity work for you.
Of course, there are chances along the way that you will be taking, leaving you with the possibility of getting seriously hurt. Plus, you never know if a medical condition may bring you back down from the top of your industry, so take the time to be prepared by protecting your income in every way possible, especially with the four tips listed above. They can work alone, but most of the time, it is better to let them all work together.