MY 10 BEST PRACTICES AND TIPS FOR PERSONAL FINANCE (Continued).
- Devise a Budget
- Create an emergency fund and Save for Education
- Limit Debt and use credit cards wisely
- Protect your family in the event death, disability and severe illness
- Have appropriate Medical Aid Cover
- *Insure your most valuable assets – Vehicles, House, Contents and Personal Items
- Have a Valid Will
- Plan and Save for Retirement
- Maximize tax breaks and be tax compliant at all times
- Invest in Yourself and Give Yourself a Break
MAKE SURE YOUR FAVOURITE THINGS ARE PROTECTED
Provide the insurer with true and complete information to enable the insurer to correctly assess the risk. An insurance policy is entered into on the basis of good faith and an insurer is entitled to verify the information provided to it at the underwriting of the policy during the validation of a claim.
It is important to disclose your full insurance history when taking up a new insurance policy. If you have had a policy cancelled by an insurer on the basis of non-payment of premium, fraud or moral risk or multiple claims, disclose this cancellation to the new insurer.
Do not use the insured vehicle for business purposes if this was not declared to your insurer. If you make use of your vehicle for business purposes, then your risk is considered higher than if you use your vehicle for private purposes only and your premium for business use will also be higher. You need to pay the correct premium for the correct use.
If you disagree with the insurer’s assessment of your claim, you are entitled to appoint your own assessor and to submit your own assessor’s report to the insurer for consideration. Remember that you bear the onus of proving that your claim is valid.
WE ARE ALL IN THIS TOGETHER
I have again realised the importance of having an emergency fund, the importance of creating a savings habit, the importance of a well-diversified investment portfolio and the importance of solid financial advice.