.AVOIDING CRISIS
Don't let a crisis cause financial problems. Take these
steps now:
1. Calculate your net worth once a year: list all
you own, and owe (family income, expenses, debts, savings, investments,
insurance)
2. Start and build a rainy-day fund of savings readily
available for crisis.
3. Update your Wills at least every five years.
4. Draw up durable powers of attorney for you and your
spouse. These allow someone else to manage your finances and/or
your health care decisions in case one or both of you become disabled.
5. Carry enough insurance - life, health, disability and
car and homeowner's, with floaters or supplemental coverage for extras
like jewelry, art, furs. Keep the premium payments up to date.
6. Have a credit history - put loans and bank and charge
accounts in the name of both spouses if one does not earn an outside
income; if each earns or has separate income, also establish accounts
in each name.
7. Ask your personnel department for details on pension
plans and all other benefits to which you and your spouse may
eventually be entitled.
8. Keep a "Doomsday" book, with the location and numbers
of stock certificates, bank accounts and credit cards; where to find
your safe deposit box, will, power of attorney and life-insurance
policies; names and numbers to be called in emergencies (lawyer,
accountant, insurance agent, etc.); make sure your attorney, children
and/or a trusted friend know where to find the book.
Back
to index