Mending Your #Safety Net

Edwin Harris - Mending The Nets

Edwin Harris – Mending The Nets (Photo credit: Wikipedia)At the end of the season, it’s a good time to mend your nets.

When we reach the financial adult stage (your chronological age may vary); you may wish to mend or create a safety net.

Safety nets are different from person to person; so feel free to select the pieces that match your own situation.

Security Risk management: often solved with insurance products. Car, renter’s, condo, house, flood, fire and theft, cell phone, jewelry, business continuation etc. Can you afford being without [insert category here]?

Savings (also known as cash these days due to barely visible interest). One person’s emergency fund is $500, another’s is $10,000 and I have met someone whose security needs are met by one year’s income in the bank ($65,000). I like to suggest thinking of this fund in terms of months of income or expenses (whichever is greater). There’s a joke in there, sort of.

Residence  Home is where the heart is (and the bills) and your fridge. (see my earlier post called Clean One Refrigerator Shelf at a Time here)

Friends and Family Shoulders to cry on or celebrate with. Who can help you stay accountable to yourself? Who will understand and support your goals? Which of your friends or other loved ones can give you an assist with tangible or intangible help? Do you need to move into someone’s spare bedroom for three months while you save up for XYZ goal? (Tip: set a deadline for being in-residence-the relationship is something you don’t want to lose).

The Future What does your future hold? What’s on your bucket list?

Tools
Education, knowledge or wisdom (not to be confused with advertising, too many data points, endless supply of new products, Squirrel!),
Wisdom comes from mistakes, mistakes come from experience.  Or,

There is only one thing more painful than learning from experience, and that is not learning from experience.  ~Laurence J. Peter

Emotional IQ  Know yourself. Are you a DIY (do it yourself) person? How resilient are you? Can you reframe an experience and move forward?

How do you like to learn new information? Are you a lifelong learner?

I have always enjoyed the opportunities I have had in my career to ask other people about their questions, or to consider what the important questions are for me when making a decision. Getting help with the right questions can be better than only searching for the answers.

Before You Quit Your Job-Five Factors to Consider

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1 Comment

Filed under Be Prepared, Family Lessons About Money

One response to “Mending Your #Safety Net

  1. This is a very helpful list. There are things to consider here that go beyond the usual “save x months of expenses.” Great advice!

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