I have a confession to make. I hate adulting. I hate tax appointments, waiting on hold with insurance companies and getting my oil changed. Actually, now that I say it out loud, I have a feeling I’m not alone. There are so many things that we have to do just to maintain a sense of security and wellness these days.
Adulting can be hard—especially when you’re still learning all the dos and don’ts of what it takes to be a responsible and successful adult. Now that you have been thrust into the adult world of wondering how to protect your assets, you might realize that no one ever explained the importance of financial planning and insurance coverage. It may seem like a waste of money at first because you believe that you and your belongings are invincible, right? But accidents happen every day, so it’s crucial to safeguard all of your assets.
This checklist for managing and protecting your assets will help get you on your way to full-fledged adulthood!
Protect Your Home
Homeowners and renters insurance is a key element of protecting your belongings. When you are ready to begin the search for the right policy for your home, remember that not all policies are created equal and you will get what you pay for.
- A standard policy will cover your home and personal possessions in the event of damage or a break-in. It will also provide coverage if you have to live somewhere else temporarily or if someone injures him or herself at your home and sues you.
- When shopping around for quotes, be prepared to compare costs, coverage quality and whether the company gives discounts for bundles such as home and auto.
Financial Planning & Investing
You’ve heard me talk about money and financial wellness until the cows come home. But having a specialized degree in finance doesn’t make me enjoy the adult side of financial planning any more than you do. Thinking about how to manage your finances can feel overwhelming if you aren’t sure where to get started.
- Start with a financial inventory of all of your money and debt.
- Make a list of your goals and a basic roadmap of how to get there.
- Create a budget so you know where all your money is going and so you know how much you can invest.
If you’re really not sure where to start, look for a financial planning firm that fits your needs—whether it’s one for young beginners or even a company that caters to a specific demographic like Ellevest.
Insure Your Valuables
Quite often, people mistakenly believe that their fine jewelry is covered under a homeowner’s insurance policy. While that is true to a small extent, this home policy will not fully protect or cover the cost of these valuables and will only cover up to a certain dollar amount. If you want your jewelry fully insured, choose a jewelry insurance policy.
- This insurance is affordable as it only costs 1-2% of the total value of the jewelry.
- By having this a separate policy, any claims will not affect your other insurance coverage.
- Jewelry loss and theft is not uncommon so this specific policy will keep you from paying out of pocket.
A jewelry insurance policy, like one from Lavalier, can even be personalized so it fits your exact needs.
Protect Your Home
Security systems have always been popular, but now they are affordable for everyone due to the new video doorbell systems on the market. Companies like Ring and Nest make it easy to feel safer in your neighborhood and give peace of mind when both at home or away. Plus, if you’re an introvert who works from home like me, you never have to check to see who is at the door ever again 😅.
This last step in safeguarding assets can be overlooked at a young age, but is extremely important if you will be transferring any assets to loved ones and want them to have the smallest tax burden possible. It’s scary to think about death and what might happen in the future, but you have to be prepared no matter how healthy or young you are.
If you’re new to the idea of estate planning, here are some steps to include:
- Making a last will and testament
- Creating a financial power of attorney
- Having a life insurance policy
- Filing beneficiary forms
- Consider making a trust
- Covering funeral expenses/what music you want played at your funeral (JK, but really.)
- Protecting your business (if applicable)
You can also use an all-in-one platform like Trust & Will to help guide you through. I also highly recommend Northwestern Mutual as a fully comprehensive platform for all things financial and estate planning.
There’s no time like the present to make sure all of your bases are covered and you’re “adulting” to the best of your ability!
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