JEAN CHATZKY’S FINANCIAL ADVICE:
WAYS TO PROTECT YOURSELF FROM THE TOP 5 FINANCIAL CRISES:
Many are not ready to cope with the financial crisis we are facing today and Jean Chatzky talks about what you need to do to prepare for the worst.
According to a survey:
• 51% of the American people are not prepared to deal with JOB LOSS.
Jean Chatzky’s advice is: BE PREPARED TO LOSE YOUR JOB. It is better to assume and actively think that losing a job is possible than to be caught unprepared. Think of the inevitable. Plan for the worst and start saving money!
She emphasizes on having a financial cushion: Stop spending and start saving money! According to her, "You need 6-9 months worth of living expenses."
• 42% of the respondents are unprepared for disability and long-term illness.
She stresses the importance of having a life insurance. Here, she adds that there are more people who became disabled than people who have life or accident insurance.
First thing to do, she says, is to check if you have insurance coverage from your employer. It is also wise to subsidize it with an outside plan. What are your other sources of income? Are you entitled for a sick pay? Check your Social Security and Supplemental Security Income Disability programs.
• 44% are unprepared for disability/serious illness of a child
Jean Chatzky recommends for you to talk to a financial expert and/ or to an estate planning attorney. It’s also a good idea to consider having a special needs trust. There are fiscal advantages to having one and the child is also protected from losing access to benefits and other support that the government gives.
• 35% are unprepared for divorce.
Any person who is not managing properly his/her own money will surely get hurt when divorce comes around. She advises that it is important to maintain financial independence. Have your own credit card, your own bank account, keep track of your credit score and be wary of joint debt. "If one spouse agrees to take on the debt during the divorce and that they don't pay them. You’ll be liable for it because it was incurred during marriage".
• 27% of the respondents are unprepared for the death of a spouse.
Know where the important papers are: For example the will, the bank/s where your money is deposited and the list of people you should call like the lawyer and the accountant.
Many people have no clue what is to come. It is best to manage your money wisely and invest while you still can!







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