Whether it's due to illness, unexpected travel, or simply the need for support, having a trusted individual who can step in and manage your financial affairs is
crucial. Far too often, individuals find themselves in precarious situations because they haven't taken the necessary steps to share and/or delegate this responsibility.
Consider these scenarios...
You typically handle paying the bills, leaving your spouse unprepared when you suddenly fall ill and are hospitalized. Or, your spouse, who usually manages finances, has to travel urgently, leaving you unsure of how to handle financial tasks in your spouse's absence.
Life is unpredictable; no one is immune to illness, accidents, or unexpected events. Having a plan in place will help ensure that your financial affairs continue to be handled efficiently.
For couples, both partners must be
actively involved in managing finances. Relying solely on one person to handle all financial matters leaves the other vulnerable and ill-prepared to step in if necessary.
Open communication and shared responsibility when it comes to money management, especially if
your family is under financial stress, can alleviate the burden on any one individual and ensure that both partners understand, work together, and are equipped
to handle financial tasks independently if needed.
Tip: If you handle all the bill paying each month, have your spouse handle this task every other month...or vice versa if your spouse usually handles this task.
Alternately, pay the bills together each month. In doing so, both of you will be familiar with what needs to be done.
What
if you live alone? In this case, it's even more critical to designate someone who can act on your behalf in case of an emergency. This could be an adult son or daughter, a trusted relative, or even a hired professional. Whoever you choose, it's essential to discuss your wishes and ensure they have access to necessary documents and information.
In today's digital age, ensuring that your trusted individual has access to important usernames, passwords, and authentication methods is paramount. Many financial accounts and services now require additional layers of security, such as phone authentication or two-factor authentication. Therefore, it's essential to keep an updated list of all login credentials and ensure your designated person knows how to access them securely.
Consider granting them limited power of attorney, allowing them to make financial decisions on your behalf if you're unable to do so. Regularly review and update your contingency plan as needed, especially after significant life changes such as marriage, divorce, or the birth of a child.
By taking proactive steps, you can have peace of mind knowing that your bills and other financial matters will be managed smoothly, ensuring stability and security for you and your loved ones, regardless of what life may bring.
