i follow the barefoot investor. His advice is down to earth and practical. Basically he says pay off your debts. Save 3months wages in a ‘mojo fund’ for emergencies. And invest in a slow moving stock. Im working on the first two right now. My mojo has about $300 and im trying to crash down that debt. But as well as this im looking into the what if scenario. He recently got a call from a man who was given 3 weeks to live and he wanted to make sure his family was taken care off. Something alot of us dont consider.
If i die do i have enough insurance so that my family will be safe? No. My super pays $250,000 if i die which for most people isnt nearly enough. For a one child household it estimated i need $750,000 cover to pay the mortgage, living and school costs. To do that i have to get some blood tests etc because i had diabeties during pregnancy and im obese, so im putting it off 😒
But i did sign the forms to contribute tomy super today. Not much. Just $50 a pay. It comes out before tax so i actually get a nice tax break. I never did it before because im sure i wont live to 67 to use it (cancer and car accents are bound to happen) but i guess that if all goes well i will need the extra to have a comfortable retirement. The average person today needs about $40,000 to live off per year in retirement. Assuming you retire at 65 and live to 85 thats $800,000. I have worked for 10yrs and have about $100,000 in super which means assuming i continue on that path i should be fine. Assuming nothing like kids or illness makes me unable to work. But if i do die in a horroble crash i guess it goes to Rue so i will take the time to make sure i can live comfortably in my retirement.
How are your finances?