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Expect The Unexpected: How To Protect Your Finances

21 April 2017 No Comment

There are lots of things in life that can cost you a lot of money. Medical bills are a big factor in nearly everyone’s day to day life. If you have insurance, you still have to pay for it each month, and if you end up needing medical attention, the premiums can soon become immensely expensive. If you do not have insurance, it can be a nightmare. The state of the American healthcare system is such that you may have to pay for an ambulance that you did not call for and did not need. They can range from $140 (which is a lot of money after all) to an incredible $5000. It is unfortunate. but the reality is that many people will hesitate to call for medical assistance even if they are badly injured and urgently need to get to a hospital. Another possible expense that could affect your personal finances is the death of a loved one. They may have had medical expenses of their own, but they are likely to be covered by the deceased person’s estate. However, the cost of a funeral can be substantive as well. The need to absorb those costs into your monthly budget can sometimes put strain on even the most prudent and thorough people.

Another cost that you have to worry about, and over which you may not have as much control as you’d like, is any legal fees that you may need to pay. In the event that you are falsely arrested and charged with a crime that you did not commit, you will soon have to face many different expenses as well as a great deal of anxiety. The first major cost will be retaining a lawyer. If you do not have the requisite funds, the state will assign a lawyer to you. However, conventional wisdom says that so-called public defenders are often inexperienced and overworked and they will not be able to put up as good a defense as possible. The better option is to hire a lawyer of your own. If you are facing criminal proceedings, you should also consider hiring a lawyer who specializes in handling cases like yours (a sex offense attorney for example). Retaining a lawyer can be expensive so some will work for you for free unless they win, in which case you pay. This may be a better option. Otherwise, you should follow what is simply financial common sense and save money each month on which you can rely if you ever find yourself in such a situation. Of course, the best advice is to not get arrested at all but that is not always something that you can control.

If you run your own business and you are sued, you may have to pay out whatever claims the court decides is necessary. Depending on the type of action that has been brought against you, this could effectively bankrupt you and close your business at the same time. One way of protecting yourself from this is to set up your company as a LLC (limited liability company). This goes some way to ensuring that you are not liable for any debts, for instance, that you company may amass. However, for the best option for you, speak to a corporate lawyer or an accountant.


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