So, you've built your Money House. The foundation is securely set in the ground. Four sturdy walls have been erected. A roof tightly ties it all together.
The next logical step is to protect it. Protecting the income for your family is the next most important thing after their needs are met. How does one go about protecting a brand new Money House?
In a word, insurance.
Yes, insurance. Having insurance transfers the risk of catastrophic occurrences ruining your financial situation or your Money House. An unexpected stay in the hospital, severe illness, or sudden loss of life can all put the hard work you've done into building your budget, your Money House, into jeopardy. That said, what kind of insurance would be most helpful?
Once the Money House is built, there are two types of insurance that will be most beneficial to protecting it:
Health Insurance - Medical expenses are getting higher and higher it seems all the time. Even a single trip the emergency room can end up costing thousands of dollars or more. What about diagnostic bills like MRIs or x-ray scans? All of this can add up very quickly. Transferring the risk of huge medical costs is probably the first thing to get to protect your Money House.
Life Insurance - Along with medical expenses, a sudden loss of you or your spouse can throw the family into turmoil in more ways than one. If you are the income provider, suddenly your family has no way to provide for their needs. Transferring that risk to a life insurance policy that exists over a certain term should be the most cost-efficient way to provide that kind of protection your family will need.
We can discuss each of these in more detail soon. For now, with your built Money House, consider how much of your total income is actually taken up by your necessary expenses. Many, if not most, people should find that their basic needs don't cover their entire income. There is usually money left over.
I encourage you to take time to look at using some of that to protect what you have built. None of us know the future and it is best to be as prepared as possible.