When you’re just starting out on the financial independence journey, you’re going to be understandably worried about a few things in your life. Namely, what kind of insurance you’ll need to take out to keep everything together, and what part of your life will need a close eye on. After all, money makes the world go round, and a lot of mistakes have the potential to be made with steps like these.
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So, if you are in a position of inexperience, but you want to go ahead with your early retirement plans, here are a few things to keep in mind about protecting your life and what’s in it. Being careful is the name of the game, and you can always bounce back from a mistake or two, but take care of the important things first of all.
Your Home and Contents
Your home is one of the biggest and best assets in your life. If you’re a homeowner, you’re going to have some kind of insurance on it already – you want to be protected in case of accident, breakdown, or emergency, and you never know when something technological can go wrong in the modern day and age.
Knowing how to take care of your home and contents is key to early retirement. If you want to be able to stop worrying during this early stage of your journey, getting into contact with services like Worrall Moss Martin Lawyers will help you to settle your accounts here, and ensure your estate is in place to be taken care of.
Even if you’re only renting your place, you might want to invest in some contents insurance. If you experience a break in, or your house gets flooded through, and half of all your possessions are suddenly gone, you’ll want to be covered in the eyes of the law.
Your Loved Ones
The people you love most in the world, such as your friends and family, might need some assurances during a time like this. If you’ve got kids who rely on you, and every time you look into their eyes and feel the need to protect them, you’ll want to assure yourself that what you’re doing is the right thing!
You’ve got more than one mouth to feed. You’ve got a handful of school years to pay for. You’ve got a roof to keep over their heads and clothes to buy as they keep on growing. And it’s a worrying thought to suddenly quit your job and rely on various side hustles to keep revenue coming in.
And yet, you’ll still be making money, and you’ll be putting passive sources of income in place to ensure money is always churning in the background. Of course, putting a bit of money away for each child is a good call here; it means they’ve got a safety net for the future.
But at the same time, you want to focus on the here and now. That might involve cutting down spending in some areas, and putting a bit more effort into others; if you’re changing the way you live, your kids are going to notice, so make sure a time like this is still filled with fun memories.
Your Savings Account
You’ve probably got a savings account – only a quarter of adults in the UK don’t, and that means it’s a popular thing to do with your money. It’s smart too; if a rainy day ever comes for you, you’ll have a good amount of cash in place to ensure the rain goes away and doesn’t have to come back another day!
But you savings account might need a bit of protection. You can always take out an account form that requires you to leave your money alone for a good period of time, but you might need to go beyond that. The FSCS will always keep an eye on your money for you, and cover you up to about £80,000 if you ever lose any, but it still might be worth it to diversify your savings portfolio.
Financial Independence is a Journey
And it’s going to have some twists and turns along the way. But remember, there are plenty of things you can do to soothe the worries in the back of your mind about breaking away from the daily grind. You’ve always got various forms of income to rely on, and different
skill sets to put to good use. Ultimately, financial freedom will make you happy!