You are earning a comfortable salary and so is your spouse, so the very thought of bankruptcy must be a faraway one. You can never be too sure though, in recent times economic uncertainty has become a regular phenomena and there can be little done to control it. While you may not be able to predict the future, whether economic or otherwise, you can definitely secure it. And how do you go about doing this? Simply by keeping your own bankruptcy checklist of course. Here are a few:
1) Too many obligations?
Think once. Think more than once. How many loans have you going on? Are you struggling to pay off the installments every month? Are there any unpaid credit card bills? If your answer is yes for all these questions then, you are on your way to bankruptcy slowly but surely.
Your cash inflows and outflows need to be well balanced. Obviously, your inflow should be of higher value when compared to your outflow. When you try and balance this equation, there will be a better chance for you to face off any financial adversities.
2) Forgotten medical insurance?
Have you forgotten to avail medical insurance or don’t think it’s worth it? Seek a reliable professional to help you choose a suitable medical insurance so that you or anyone from your family needn’t be bombarded with medical bills when there is an unexpected hospital visit. This is one of the common forms of bankruptcy across the world.
3) Is your life insurance sufficient?
Although most of us avail life insurance, are we sure of how much is enough? If you have a significant debt burden, then ensuring your family is shielded from it is of the utmost importance in your absence. Evaluate carefully and modify your insurance plan if necessary.
4) Remember your good old piggy bank savings?
There is a reason everyone is gifted piggy banks during their childhood. Inculcating the habit of saving a certain sum everyday will indeed go a long way. Obviously once we grow up, banks replace our piggy banks, apart from deposits you make. It is always advisable to have at least half a year’s salary in a savings account, use this as your emergency fund.
5) Too much of a friendly guarantor?
Acting as a guarantor every time a friend asks is not a good move. There are so many reasons you shouldn’t do this: one good one would be using your assets as a collateral. Don’t fall prey to sentiments and go bankrupt.
If you have been able to clearly analyze the answers for the above checkpoints, then you will be able to get an idea of your financial position. So, start saving today, for a surer tomorrow.