Your income is the most important asset that you have, keeping your finances In check and supporting your lifestyle. Your income also protects your future, allowing you to save for retirement to continue your lifestyle after you are done with work. But there are a lot of things that could impact your income, and if you don’t have plans in place, these can be catastrophic. Here are a few ways to protect your income from unforeseen events.
Invest in Your Human Capital
The most important thing you have is yourself and your own skill set. The more you can do, the more ways you are employable. You should continually be investing in more education, and broadening your skillset to make sure that you are able to offer the most you can to make the best income. The more skills you have, the more valuable you are to your employer. Not to mention, the more you can do the more employable you will be in the event you lose your job. The Taplow Group recommends you learn new skills and take new classes to expand your skill set.
Most people do not have disability insurance, which is surprising given the high rates of disability impacting people in the workforce. According to Insurance Center Associates, 25% of adults will suffer from a disability before they retire. And if you develop a disability before you reach retirement, you may find yourself without income. Disability insurance covers you in this situation, giving you a portion of your regular income while you are unable to work. This is the best way to protect yourself from disability that impacts your income.
Develop Multiple Income Streams
According to The Creative Life, developing multiple income streams allows you to diversify your income, so that if one stream of income is impacted your others can stand firm. There are many ways to diversify your income stream, like starting a side hustle, investing in dividend paying stocks, or purchasing investment properties and rental properties, or freelancing your services. There is no right or wrong answer to how you diversify your income stream. Whatever works best for you is a good move!
The fear of losing your income can be a major stressor in your life. But a good way to put those fears to bed is to protect your income from emergencies. You can do this in many ways, like insurance, diversifying income streams, and investing in yourself. If you can take care of these three things, you don’t have to worry about going without income again.
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