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Teachers: Protect Yourself - Four Things to Do Now Financially

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Jun 4, 2010 11:26 EDT

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http://www.hotchalk.com/mydesk/index.php/personal-finance-for-educators/529-money-matters

"Teachers: Protect Yourself - Four Things to Do Now Financially"
By Scott Dauenhauer, HotChalk.com

It’s easy to be scared about financial matters right now. While you cannot control the markets or the timing of the eventual recovery, there are steps that all teachers — indeed, all individuals — should take to protect themselves from financial calamity. What follows are four major areas of concern that all individuals should plan for. 

Disability

What is your greatest financial asset? Not long ago, we all might have had a laundry list of riches: House, 403(b), IRA, stock investments, etc., etc., etc. Still, even when times were good, these weren’t our great assets. No, our greatest financial asset is our ability to work, or more specifically, to earn income. It’s easy to think that disability is something that happens to someone else. Statistics say otherwise. It is estimated that three in five Americans will miss work for a period of time due to a disability.
What should an educator do? Find out if you currently have protection through some combination of your employer, your state pension plan, and your union. These are your best sources for attaining affordable coverage. Seeking it on your own could be cost-prohibitive. Remember: These plans are not lottery tickets for people who become disabled; they are designed to get you through a tough period until you are able to return to work.   

Job Loss

Being laid off from a teaching job was once unthinkable. It may be time to start rethinking this assumption. There is no insurance you can buy to protect yourself from a lay-off, but you can do the following to lessen the blow:
  1. Build a cash reserve equal to three-to-six months of living expenses (a challenge, we realize).
  2. Live below your means (the definition of need is clearly being re-examined).
  3. Draw up a budget. Mint.com, Quickenonline.com, and Justthrive.com are easy to use web-based money management sites.
  4. If you are a homeowner, you may want to look into arranging a home equity line of credit. This would allow you to draw money as needed. Obviously, the utmost caution is urged here. Tap this money only in an emergency. Note that lenders are making it much more difficult to arrange these types of lines of credit.  
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Four Things to Do Now Financially

Relevant Subject and Topic
Other, Career and Life Skills, Personal Finance and Investment, Other

Types
Article
Blog

Features
Informative

Format
Blog
Webpage

Copyright Owner
HotChalk.com

Most Suitable For Use By
Instructors, Facilitators, Parents, Learners

Age Appropriateness
Adult(19+)

Grade Appropriateness
Elementary School, Middle School, High School, Postsecondary, Graduate, Adult General, Professional

Geographic Suitability
All or Non-Specific

Language
English

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Version History

Date Edited
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Jun 4, 2010 11:26 EDT
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Jun 4, 2010 11:25 EDT
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Jun 4, 2010 11:25 EDT
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