Most of us look forward to payday, particularly during the final 2 weeks of the month! However most of us dread the following week when all our direct debits begin to come out.
The financial direct debits are often the chunkiest, however what are they and what do they do? And what if you had no money to meet all these direct debits at the end of each month due to illness/injury or the death of a house earner?
Your financial direct debits in order of priority below may be a startling reflection of these facts and how you may be currently prioritising them, where do you sit in?
- Car insurance(obligatory)
- House insurance(obligatory)
- Mortgage Protection on death to payout(obligatory but only covers the balance of the mortgage and nothing else left)
- Health Insurance, expensive but essential for many in their eyes
- Travel insurance
- Life Cover for parents/breadwinners
- Gadget Insurance or phone insurance
- Pet Insurance
- You???-Income Protection or Illness Cover
Is the above a fair representation of your financial priorities and monthly financial direct debits?
Do you prioritise insurance for an €800 Iphone @ €20 a month or do you insure your pet dog over your own health or income if you became too ill to work or earn money with income protection or illness cover?
A recent 2018 Central Bank survey found that 440,000 people had gadget insurance, yet ask those same 440,000 people what they would do if they were too sick to work or injured, where would they be?
If you are working in the private sector and SME sector, can your employer cover your wage for a month or two?possibly. Doubtful in many instances.
For the direct debit run at the end of your month, make sure you Protect you and and your income above your iPhone or pet dog!