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How to Back-up Your Life

How to Back-up Your Life

Too often people go through life with a tunnel vision approach of how they plan to go about their daily activities, long term goals and work related endeavors. Any well thought-out strategy is successful because the planners know that “the best laid plans of mice and men often go awry”.

Life is always tossing in the monkey wrench. You should never assume that what you plan today will work for you tomorrow. We see examples of these alternative plans everywhere, yet most of the time they go unnoticed. What does this say about our priorities? By putting some focus on the areas we have neglected to plan for, we can get a better understanding of where our life priorities really stand and where they really should be.

Why is having a Plan B a vital part of success? Not only do back-up plans keep you calm in times of duress, but they also offer two important attributes that should always be accounted for before planning anything in life: flexibility and adaptability.

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Flexibility allows you to change plans without notice which means you can adapt to any situation that arises to achieve your intended goals. There are areas in life where you should always have a back-up plan. We know one thing for sure: that change is constant. You have to be able to handle change whether good or bad. Here are some suggestions in areas that may need attention.

Your Career

-Always back-up your career. This is something to consider now when the economy seems to be headed into dire straits. I know too many people who have been laid off and have no idea what to do if they don’t find another job in their field. Always find something you can do in lieu of your dream job.

-Update your resume often. Whenever you finish a big project, switch jobs or get a new title, it is important to update your resume right away. Not only will it save you time later when you need it, but it is always good to have it updated for spur of the moment career opportunities. I have seen people lose promotions because their resume was not ready to go and they took too much time to update it.

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-Save, Save, Save. Financial planners recommend that you have at the very least two months pay saved up. If you get laid off or worse, fired, there is no guarantee of a severance package. If a medical condition befalls you and you need to take an extended leave of absence, this is a security blanket that will see you through to your recovery. Even if you cannot seem to save that much, save something or meet with a planner who will help determine the plan best for you based on your current salary that will stick.

Your Finances

-Always have a retirement plan. If you are at least 30 years of age and have not opened a savings account, 401K or Roth IRA, do it now! This is especially important for those earning a living in the blue collar or hospitality industry with companies that do not offer you benefits for retirement. Retirement may seem like a long way off, but by opening an account is a step in the right direction towards ensuring your stability later on in life.

-Plan for divorce. It is not a pretty phrase to read, but let’s face it, more than half of all marriages end in divorce. Of course we all tell ourselves that we will be the exception, but it is still a financially independent and intelligent thing to keep in mind, especially for women, so that we have financial security should the marriage fall apart. It is as simple as starting a separate savings account. You can find amazing deals right now if you do it online with interest rates up to 4.75%! That is as good as a CD and you can keep adding to it for the life of the account.

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-Plan to be widowed. The last thing you need when something so horrible happens is to have to worry about finances. Whether you are 20 or 60, you should have a living will. If you need a good reason why, let’s remember Terri Schiavo. She was only 25 and the absence of a living will kept her in a vegetative state for more than a decade. You and your partner should have life insurance policies with the other being named as the beneficiary.

Also, any retirement plan should also have the spouse’s name on it in the event of a tragedy. Each of you should also have your own credit card. Too often I see spouses just added on as users to the credit cards without realizing that they are just authorized users and not actual account holders. It is important to build your own credit and not just rely on your spouse’s.

-Always insure valuable items. The engagement ring you bought your wife, the family heirlooms your mother gave you, antiques of value in your house, etc. It is important to inventory your items of importance in case of a natural disaster, fire or robbery. Get them appraised first before insuring. You might also want to take photos of the items and put them somewhere safe.

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Your Personal Records

-Always back up important records. Plan a day each month to back up your files on your personal PC, laptop and work computer. I recommend an external hard drive. What size you will need depends on what kind of files you work with each day. External drives have come down in price and are much easier to use and less time consuming than CD burning. Instead of amassing a bunch of CD’s, you can just update files on the external hard drive.

This also means scanning in and saving important documents such as birth certificates, any financial records such as taxes and of course, work files! In case of a fire or computer crash, you will still have this valuable information. Your birth certificate can be certified by a notary public without having to go through vital statistics from the state you were born. You may also want to look into a safety deposit box for heirlooms and important records. Not only will these items be insured, but they will be safer than in your personal possession.

Back-up plans should not only be applied to business projects, educational goals, but everywhere in the real world: dealing with children, spouses and social environments. It is important to pay attention and start planning the alternatives so you are not left in the dust unable to adapt because you failed to develop a Plan B. Lack of planning robs you of your flexibility because unfortunately, failure is always an option and if you fail to plan, you plan to fail. You may never use your back-up plans, but like the flood insurance you purchased, it’s always nice to know you have it.

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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