Illness is something which no-one can plan for. Even the healthiest and fittest of people may, at some point in their lives, find themselves struck down by an illness or disability. But even though illness is unpredictable, making preparations for such an eventuality is something we can all integrate into our lives.
The Importance of Planning
Illness can be very draining, leaving little time or energy for dealing with everyday matters such as budgeting. People who become ill often say that money is one of their largest concerns. One of the best ways in which you can prepare for a future illness is by drawing up a financial planning the present. Not only will a financial plan help you to deal with your day-to-day spending, it will provide you with the support you need until you are able to get back on your feet and into work again.
How Your Plan Can Help You
The most important aspect of a financial plan is that it can help you see a little further into your financial future. By taking stock of your finances now you may well see room for potential savings. It is these savings which will form the safety net for any future illnesses or disabilities. If you find that you aren’t currently in a position to save, looking at your financial plan will help you to identify ways in which this can be achieved in the future. Paying off debt, for example, will ensure you are able to allocate more money to saving. Some people choose to do this by consolidating their debts using a short-term installment loan. However you choose to become debt free, make sure you’re able to meet any terms and conditions going in.
Creating Your Financial Plan
No two people’s financial requirements and responsibilities are the same. Financial plans will therefore differ greatly between individuals. It’s a good idea to look for a template to serve as a basis for your financial plan, but you must ensure to customize it for your own particular needs.
Common elements which you may wish to include are:
• Monthly Income and Outgoings
• Savings and Investments
• Upcoming Expenditures – for example, car tax or home repairs Additional elements you may wish to include are your partner’s income and expenses, any benefits you are in receipt of or may receive in the future, and any debts you are currently liable for, whether you’re paying them off or not.
Protect Your Plan, Protect Yourself
You will never be able to predict the onset or severity of an illness, but the more preparations you make the more protected you will be. Make sure to talk over your financial budget with family, friends, you employer and even a financial consultant if you can afford one. Keep all your documents – including any insurance papers – in a safe place so they can be easily accessed if and when the time comes that you need them.
Article Contributed by Jonny Pean Google+ read more trendy topics here @1ststop.co.uk