The financial difficulties of the last couple of years have led many people to re-think their financial decisions. In the past, people did not put too much thought into protecting their finances because they always assumed they would have money coming in. Today, things are different and people are more careful with their money. Following are some simple ways to ensure that your financial position remains solid.

1. Working together

It is important for couples to work together when making financial decisions. Many people, especially women, are caught by surprise when they realize how bad their finances are. This is because they are not kept aware of the financial decisions taking place. For the marriage to work, both parties must work together even though one is not working or is making less money. Working together as a team will help to protect the family money.

2. Separate accounts

In the past people have always assumed that, as a couple all the money should go into one bank account. While it is very important to have a joint family account, it is also important to have smaller separate accounts for each of the couple. This smaller account can be used to take care of spending money while the joint account is for bills and all family expenses. The importance of the separate account is that it prevents the problems that occur when one partner is seen as spending too much on ‘trivial’ expenses.

3. Insurance policies

To make sure your family is protected should anything happen to one of you, it is important to have life insurance. This will help to ensure that your dependents have living expenses if you are not there to provide for them. Disability insurance is also important to help cushion your family if you are injured or sick and cannot work.

4. Separate financial identity

Most women tend to lose their identity when they get married and they depend on their husband’s financial identity. Having your own financial identity can help to save your family if you find yourself in a financial crisis. If a financial situation causes your husband to attain a poor credit history, you can use your healthy credit history to save your family. It is important to have a separate credit card that is in your name.

5. Save

If one thing has become clear in the last couple of years, it is the importance of saving. Putting money aside each month will come in very handy if life throws you a curve ball. It is vital to have a nest egg that will help you to have a good retirement.