Lawmakers knew the consequences our country would be confronted with at the inception of 2013 if they did not address the tax break changes. The Fiscal Cliff had been discussed and debated by the American people far much longer than it was discussed and debated by the Senate. Three hours before midnight of January 1st, the Senate finally sat down and agreed on a tentative deal to prepare for the upcoming year. Many of us are aware of Americans propensity to procrastinate, but like the fiscal cliff, there are many other important things that should not be left for last minute review.
The financial consequences of ignoring the impending fiscal cliff would have been disastrous. Similarly, in a grave situation like the death of a family member, there is potential for disaster. If we do not plan accordingly for ourselves, and our loved ones, we could face ramifications that are not remediable. To avoid a fiscal cliff of your own, you should prepare for the uncertain. Here is a brief checklist to get you started:
- Create a living trust. In the case that something happens to you, the last thing you want is the government deciding who gets your estate. Avoid probate and make sure that your beneficiaries are planned for.
- Plan your retirement. Its never too early to start.
- Create a savings for your childrens college fund. Education is truly invaluable and possibly one of the best gifts to give to your loved ones.
- Get life insurance. Make sure you are prepared for any unforeseen circumstance that you or your family might face. SelectQuote makes this simple and provides quotes specific to your needs.
- Have an emergency fund. Designate a monthly allowance to this fund and do not fall short. When the time comes and you need this extra cash, youll be glad you did this.
Go ahead and create space for these critical considerations to make way into your life. Looking at the big picture enables you to put life goals and priorities into perspective. In addition, preparing yourself and budgeting you and your familys expenses for the unexpected will relieve day-to-day stress. Wishing you wonderful “fiscal” planning from your friends at SelectQuote!