Four financial priorities for 2022
Build an emergency fund If there is one thing we have learned through the pandemic is that in life, anything can happen. An emergency cash stash helps put you out of financial harm’s way. Ideally, it should be equal to six months’ salary, to give you half a year to recover if the income on which you live dries up through job loss, accident or illness. That’s a lot of money to accumulate, so just focus on building your cash buffer slowly over time. If you have a home loan, park your emergency cash pile in a mortgage offset account, so that it saves you significant loan interest too. Protect your family No one likes thinking about the prospect that they will get hurt or, perish the thought, die. However, right now, ongoing income and lump sum life insurance are everything. At a basic level, you need life insurance if you have dependents, sufficient to cover your debts and perhaps raise any children to adulthood. This is often sold with total and permanent disability insuranc...