“Health is like money, we never have a true idea of its value until we lose it.” -Josh Billings
What is Income?
"A gain or recurrent benefit usually measured in money that derives from capital or labor" (www.merriam-webster.com).
My first job during my senior year of high school paid $1.97 per hour as front desk receptionist for an air conditioning company. I was able to purchase my first car with cash in full and pay rent for my first apartment.
Steady income is a necessity of life for our independence and self-preservation. There are some definite advantages to considering investment streams of income that are not contingent upon employment or being a business owner. Let’s explore a few areas where loss of income is a game changer where working income in involved.
Loss Income – Employment Issues
In 2019, I had to take unemployment wages due to the pandemic, which kept food on my table and the lights on in our home. The year before in 2018 the federal government spent approximately $4.1 trillion on unemployment wages. Loss of income is directly related to loss of housing, food, clothing shelter, mental well being and even our lives.
Employment vs Unemployment? (US Bureau Labor & Statistics)
· People with jobs are employed.
· People who are jobless, looking for a job, and available for work are unemployed.
· The labor force is made up of the employed and the unemployed.
· People who are neither employed nor unemployed are not in the labor force.
Loss of Income – Health Issues
Inability to work due to health issues, hospitalization, and long or short term medical therapies/treatments can reduce or stop household income. In addition, the cost or medical care can be astronomical and in some cases certain treatments are not covered by insurance.
Between 2013 – 2016 66.5% of bankruptcies were tied to medical issues. Medical Bankruptcy Is Killing The American Middle Class | Nasdaq
Critical and chronic Illness
Death/Loss of Life
Impacts two income stream households
Impacts the lives of minor children
How to Protect Working Income
Establish a financial plan
Accelerated Death Benefits /Living Benefits
Early Social Security Benefits (age 62)
The best plan is to have a plan. Think of the what if’s and make proactive decisions. Prepare for possibilities - for the events that can impact you now and years to come.