One of the first pieces of the puzzle is to have in place an adequate emergency fund. The amount you should have in reserve varies depending on your household income, whether there is one income earner or two, and what your family spends each month.
Next step is working out a way to build an emergency fund if you don’t already have one. This involves looking at your budget and working out how much you can afford to set aside, remembering this will only be for a short time.
Finally, we need to work out where to park the emergency funds. There are lots of options and things to take into consideration. These include looking at your taxable income, whether you have any bad debt, whether your loan/s have redraw facilities etc. So as you can see, something that seems fairly simple actually involves quite a bit of thought to get the best possible outcome for you.
Although an emergency fund is a good start, some of the best financial protection comes in the form of insurance. We are talking life, total & permanent disability, trauma and income protection. These are the main four that you should consider as a part of your financial security plan (in addition to private health and general insurance).
Insurance is often more affordable than you think and can provide much needed benefits in the event of serious illness, accident or untimely death. We can formulate a risk protection strategy to suit your needs and budget. We also provide a dedicated claims service to help you in the event you need to claim on your insurance.