Do you have a plan in place if you were to unexpectedly lose your job or you decide to go the entrepreneurial route for your career? Have you sat down an written out a financial and lifestyle management plan for this life event?
It’s a good idea that you do!
The job market and opportunities of today are so different from our parent’s generation. More businesses are using technology to replace an actual body, the economy is causing businesses to downsize and use fewer people for the same tasks, and there is more job dissatisfaction from employees.
I know we all have day dreamed about being financial independent and not having to “punch the clock” for anyone. But with that comes additional responsibilities on our part.
- Will we make enough money to cover the household expenses?
- What about our children’s education? Even with public school, there are other expenses to consider
- Who will provide our health, dental, and life insurance and at what cost?
- Will we have any money left over for vacation or other activities?
Many financial planners suggest that households need to have at least 3-6 months of household expense in reserve for such life changing events. And of that 6 month reserve, are you sure that you have everything covered?
When I sit down to determine exactly what it costs to keep my household functional, I primarily just look at our needs:
- Shelter (mortgage)
- Gas (transportation)
Other things such as cable, alarm system, home phone line, beauty salon, clothes shopping, and eating out just don’t come into the equation. It would be great to still be able to have these things, but in (what may be considered) tough times, we have to be realistic. Even if it hurts for a while.
Another thing to consider if you lose your job or decide to become your own boss, is that you lose the luxury of having company contributed health benefits. This can be a hard hit because we all know that we can’t predict when we will get sick or have the worst tooth ache in the history of life.
There are sites that you can use NOW to help you assess how much it would cost (out of your pocket) to cover you and your family short term. One such site is “ Term Health Insurance“. This site will search companies in your area that provide temporary short term insurance. They also have links to information about student insurance, how to comparison shop for insurance, and is a health plan worth it.
I suggest before you go with any temporary health plan, that you research the validity of the company, get reviews from others who have tried it, and always get receipts as a paper trail in case something does not get paid as quoted.
Other useful link: Mayoclinic.com
**Disclosure: This is a sponsored post but all opinions are my own and without bias**