Fireproof Financial Plan – 5 Steps to deal with a ‘Hope this Never Happens’ Event
Every person should have a Fireproof Financial Plan in place in case of emergency. With this plan in place, you will be able to respond calmy and think clearly in the event of a financial catastrophe.
· Be Prepared.
o Though you may believe that this will never happen to you, you should always be prepared for a financial emergency.
o Know the route you are going to take before the emergency occurs
· Stay Calm.
o With the correct procedure in place there is no need to be alarmed.
o Do not panic when you hear those words, “you no longer have a position with this company” or “this is Dr Smith, we need to talk”.
· Respond Immediately.
o Remain calm and remember, your financial plan is in place.
o Understand that there will be a period of grief – allow yourself to grieve and be realistic about the time this can take.
o Seek the support of those around you – don’t be embarrassed or too proud to admit you’re having problems - we are not meant to do life alone.
· Enact the Plan.
o Be confident that you have a plan in place for emergencies and all you need to do is follow it.
o When you are given a new beginning, it starts with an ending.
o Be thankful for closed doors and believe that you are being guided to a new door.
o Remember, life is a journey, not a destination
Now we understand the 5 steps we need to take in case of a financial emergency, how do we create the Fireproof Plan for your money?
Creating Your Fireproof Financial Plan
· Set up the Ideal Bank Account Structure
· Put a Spending Plan in place so your money is organised, essential bills are covered, debt is eliminated and savings are accumulating.
· Negotiate with your Creditors to reduce and eliminate debt, then
o Cut up the credit card
o Set some debt rules
· Put a ‘Life Happens’ Emergency Savings Plan in place
o Increase this account to equal a minimum of 6 months of income
· Increase your home loan and personal loan repayments
· Keep an electronic copy of all your important documents and back it up to the cloud.
o Wills & Power of Attorney
o Birth Certificate
o House deeds
o Insurance Policies
o Drivers Licence, Medicare Card, Bank and Credit Cards
o Superannuation details
o Photo collections
Start your Fireproof Financial Plan today and give your finances the same kind of care and forethought you would give to protecting your family from disaster.
For help setting up your own Fireproof Financial Plan, consider booking a Money Success Breakthrough Call with me and having a chat.