Insurance plays an Important Role in Staying Financially Strong

Sometimes the old clichés are still around for a reason. Take New Year’s Resolutions, for example. It might seem redundant and ineffective, but you can’t argue with the fact that a new year = new opportunities to do things differently or better. It’s quite simply, a wonderful season that has become synonymous with change. So, if you’re pursuing any goal as part of your personal or professional journey this year… Good on you.

One important area that we can all relate to wanting to see change in is our finances. January is a good time (or as good a time as any) to think back and consider how your choices and lifestyle have impacted your financial standing. While you’re thinking about this, you should also consider what you want to achieve in your financial future.

To help you on your way to finding financial stability and success, here are some cash savvy resolutions.

Resolve to know your history.

To get a good idea of how you got to where you are now, you need to look at your history. This might involve downloading a few statements on your own, or sitting down with a financial advisor.

Looking back allows you to become aware of your habits, emergency spending, items you clearly prioritise on a monthly or weekly basis… And once you’re aware of your spending habits, you can plot where to cut back, how much you should be saving, where your weaknesses lie, and more.

It’s basically a good way to get insights into your spending so that you can make better decisions in the months to come.

Resolve to plan your savings.

One of the areas where you can make better decisions is savings. Very few of us just happen to save every month and need to have a plan in place that we can stick to.

So, once you’ve examined your financial history, you’ll see for yourself where you can avoid unnecessary spending and you can sit down and plot the how and why of your savings.

There are 3 types of savings that you can plan:

1. Planning a specific amount that you will stash away, perhaps to invest later on or for a specific goal, like a car, studies, or travelling abroad.
2. Planning to save by not spending unnecessarily on things like convenience food, little items you chuck into the trolley on the way out, clothes that you don’t need, etc.
3. Planning to save money for emergencies. An emergency fund helps you prepare for unforeseen costs, like household repairs, unemployment, and medical expenses.

Ultimately, what you want to save for and how you plan your savings is up to you and what works for your budget. It could be wise to chat to a financial advisor about how best to structure this area of your finances.

Resolve to protect your financial investments.

If you spend money investing in something important to your life, like your house, car or laptop (or that couch that took you months of saving before you could buy it), then it’s worth insuring it.

Insurance is a necessary expenditure to factor into your budget to prevent you from much higher costs that you probably couldn’t afford if something were to go wrong. And boy, do things go wrong.

Car accidents, burst geysers, lightning strikes, theft, accidental damage… These things happen.

To protect your finances, as well as your investments, it’s best to seek out affordable, quality insurance. King Price, for instance, prides itself on providing inexpensive car insurance that decreases every month as the value of your car depreciates. You can also choose your own excess to suit you. Just remember, lower excess = higher premiums and a higher excess = lower premiums.

Not only are you assured of royal service and great savings for your car, but you can extend this protection to a range of other investments in your life, from your Apply Watch and bicycle (with their R1 insurance) to your house and computer.

Resolve to plan for the end.

Young, old, wealthy or broke… It doesn’t matter which stage of life you’re in, because there are no guarantees about what tomorrow will bring. That’s why you need to make it official and create your last will and testament.

Decisions that need to be made:

• Decide how your estate will be distributed.
• Decide who will wind up the affairs of your estate.
• Decide who will take care of your minor/dependent children.

By creating your final wishes in an official capacity, your loved ones will avoid a lengthy probate process and other legal issues, and minimise estate taxes, and you’ll also be able to make gifts and donations, and disinherit individuals who would otherwise stand to inherit.