Once you have laid the first two layers of your financial foundation, it’s time to start thinking about everyone’s favorite subject: what happens if tragedy strikes?
So far, talking about ideas such as building leisure budgets has been fun. Yet, just as you must think strategically about how to bring your goals to life in the now, you also need to plan for what may happen tomorrow.
This is where risk management comes in.
What Tomorrow May Bring
2020 taught us that you never know what a year may bring. If you never take the time to stop and discuss with your spouse, partner, or family the current state of your risk management, you may wake up one day to discover that a crisis has struck and you have no plan.
It’s time to change your mindset from “I don’t have time to chat about risk!” to “I don’t know how much time I have on earth - it’s time to talk about risk!”
Ask yourself, If I walked out the door today and was struck dead or injured and couldn’t work, what would happen with my financial situation? Can I cover my BAM (Bare Ass Minimum)? Do I have the right sets of insurance? Are we ready to dip into our savings?
You Need A Will
Nobody likes talking about death, but here’s the plain and simple truth: you will die. Maybe not today or tomorrow, but the day will come when you will pass from this life. When that happens, what will become of your wealth?
According to statistics, nearly 80% of Canadians don’t have a will.
What is incredible is that creating a will for your life is easy to do - yet the consequences of not having one can be catastrophic.
In this layer of your financial well-being, you need to think critically about the steps that follow your untimely death. Does your will clearly state where your wealth goes upon your passing? Does the will give directions as to how money will move from primary to contingent beneficiaries?
If you want the comfort and clarity of mind that comes with having your risks fully managed, take the time to set up your will. Even a young, healthy couple or individual without much debt can benefit from knowing that their future is protected. Don’t let the unexpected catch you off guard.
Want to hear more great lessons on life, happiness, and true wealth? Check out the Picture of Wealth podcast - hosted by Dustin Serviss. Discover the tips, tricks, and insights that unlock a life well spent. Listen today where you listen to podcasts.