My two recent posts in honor of Mother’s Day were related to Mom’s advising their children and taking care of aging moms. My final post for Moms this May is for Moms to take care of themselves.
Mom - Have you considered doing a Crisis Check- up? While times are good, most of us ignore what could happen. Death, Divorce and an Illness are all real. Do you know what situation you would be in if any of these happened to you? Do you want to have your own “Go Fund Me” page?
So what should you do for a crisis check-up? The easiest way to get into action is to start with smaller steps. Max Dixon, who I have been fortunate enough to receive training with, calls this a SSDT, a Single, Simple, Doable Thing®. For each crisis area, I am giving you one SSDT.
Death- Review your spouse’s life insurance coverage.
Does your spouse have life insurance? How much does he have? Do you know if it is enough? I have had several friends lose their spouses suddenly. I can assure you that $300,000 of life insurance does not go that far if you are still trying to send kids to college and cover a lost salary. This is the MOST important thing you can do for your family. Insurance does not have to be very costly and should be able to fit into your spending play. Did you know that you have a choice of how much insurance to get on your spouse? It does not have to be his decision. What amount would make you feel protected?
Divorce – Know where the money is.
None of us plan on it. Divorce may often be as surprising and sudden as death. What should you know? Since you can’t plan on it, just make sure you are more aware of your financial situation.
Know where the money is. Retirement accounts, investment accounts, savings accounts, pensions, stock options. Be aware of what you have as a family unit. If accounts are online vs. statements being mailed, get access to passwords if possible. Knowledge is power.
Illness –Build up cash reserves.
A serious illness can create a major financial strain on the family. Through the 12 Oaks Foundation, I see on a daily basis the dramatic cost of illness. Loss of work, commuting, and medical bills are overwhelming. Assuming you have medical insurance, make sure you have and are building up a cash reserve account. This will help with deductibles and lost time at work or quit jobs. I very frequently see where someone in the family will have to stop working if someone is sick.
Here are 3 Simple Doable Things. Can you do them? I would love to get a follow up from anyone who has taken the time to do any of these Crisis Check-up tasks. Send me a note! Please Share with your friends, family and colleagues.