For a good portion of Americans, life insurance is a critical component of financial planning. However, when a life insurance policy becomes too expensive to maintain due to premium increases, the owner can be faced with some difficult decisions.
If emergency officials in your community issued a mandatory evacuation order to get out of the path of a wildfire, hurricane or other natural disaster, would you know what to take with you, the evacuation route you would take and where you would go until it was safe to return home? A recent survey shows that many homeowners are not prepared for an emergency - learn how to make your own plan by reading the full Medium article here.
It is never too late to start planning for your future or even planning for next week. Managing your finances in your 20s is an essential step in order to be better prepared for the years ahead. This article serves as a guide on how to get started to secure your financial future - today!
When you are in your 20s, there are countless things to worry about: Creating an independent life on your own is challenging, a work-life balance isn’t always easy to achieve, and maintaining a healthy lifestyle can be difficult. Beyond all of that, it is also necessary to manage your finances. Money for bills and other life necessities is one aspect, but it is also essential to plan for your financial future. While it is never too early to start working towards this, if you are not careful, you might start planning for your financial future too late. There are also the added benefits of early financial planning, forming smart money habits, and small amounts now growing into much more significant amounts in the future.
Even if you are starting with small investments, starting early will have considerable benefits in the long run. While small investments will begin with small returns for you, those small returns will begin to grow from compounding interest. Monitoring your investment accounts and ensuring your returns are adequately reinvested will gradually become a source of personal wealth.
You Need a Healthy Financial Portfolio
As you begin to invest, it is best to not look into only one investment opportunity. Creating a diverse portfolio of investments allows your wealth to grow even in volatile markets. Beyond that, it is vital to understand the immediate impact of your financial health. Your financial portfolio determines how much of a house you can afford. It also affects lines of credit and other large purchases.
Planning Now Means Less Stress Later
Establishing a financial portfolio with smart investments is more than an immediate benefit; it is also a step towards your long-term financial planning. While retirement seems like a long way off during your 20s, It will happen before you realize it, and an intelligent financial portfolio can help you get set for it. Not to mention, emergencies will inevitably occur in your life that will make planning even more essential. By having a healthy portfolio, you might not be able to fully prepare for them, but you can at least be prepared to pay for them with a lesser degree of stress.
It is never too late to start planning for your future or even planning for next week. Managing your finances in your 20s is an essential step in order to be better prepared for the years ahead.
Please check out our other financial-related topics here!
When it comes to economics, many teens’ mouths write checks their knowledge can’t cash. Help influence the financial literacy of a teen in your life with these practical money-management tips.
5 Financial Tips for Teens
(Family Features) When it comes to economics, many teens’ mouths write checks their knowledge can’t cash.
While 93% of American teens say they know how the economy works, 29% have had no economic schooling, according to a survey of 1,000 U.S. teens ages 13-18 by Wakefield Research on behalf of Junior Achievement and the Charles Koch Foundation. Even in light of their false confidence, teens are aware of the importance of financial education.
Although the study identified numerous gaps in economic and financial knowledge, it also showed teens do know where to look for credible information. Two-thirds (67%) recognize they should use their school as a resource.
“One of the things we hear often is that some textbooks are written too academically for most students to understand the concepts,” said Jack E. Kosakowski, president and CEO of Junior Achievement USA. “Our programs, which work as a complement to the school curriculum, are written from the perspective of today’s teens and use digital content to help bring economic concepts to life for students.”
Beyond the classroom, another 63% of students believe they should use their parents as resources for economics education. Help influence the financial literacy of a teen in your life with these practical money-management tips adapted from the curriculum.
Set goals. Managing your money is more meaningful when you’re doing it with purpose. This might mean budgeting to ensure you have enough money to maintain your auto insurance and keep gas in your car, or you may be saving for a big senior trip. Knowing what you want to achieve with your money can help you plan how you spend it more wisely.
Weigh needs vs. wants. When you begin making your own money, it’s easier to indulge your own wishes and spend money on things you don’t necessarily need. To some extent, that’s not a bad thing; rewarding yourself is fine when you do so within reason. That means not exceeding your available funds, and not forsaking things you truly need, like gas money to get to and from a job or school.
Get a debit card. Most people find that having cash on hand makes it easier to spend. If you use a debit card instead, you’re an extra step away from spending so you have a little more time to consider your purchase. Another benefit of a debit card is it helps track your purchases in real time so you can keep constant tabs on your balance and ensure you don’t overdraft your account.
Start a savings habit. Even if your income doesn’t allow for much, it’s a good idea to get in the habit of setting aside a portion of each check. It may only be $10, but over time each $10 deposit can build your account toward a long-range goal.
Protect your privacy. Teens who’ve grown up in the digital age tend to be less skeptical and cautious about privacy matters than their elder counterparts. It’s important that young people understand the potential impact of failing to protect their privacy when it comes to financial matters, including the possibility that their identities could be stolen and all of their money siphoned away. Teaching kids about security is an essential lesson in economics.
Visit ja.org for more tips and information to help raise your teen’s financial literacy.
Photo courtesy of Getty ImagesSOURCE:
Mortgage insurance is a stable, cost-effective way to obtain a low down payment mortgage, and offers distinct benefits to borrowers. It has been a cornerstone of the U.S. housing market since 1957, providing more than 30 million families with the opportunity to own homes despite financial barriers. If you are considering purchasing a home, it is important to understand your options, including your low down payment options.
(BPT) - For many Americans, the biggest hurdle in buying a home is the down payment. According to a recent report, 49% of non-homeowners stated that not having enough money for a down payment and closing costs was a major obstacle to purchasing a home. Many people also mistakenly believe lenders require a 20% down payment to qualify for mortgage financing.
Data shows that by using private mortgage insurance (MI), millions of homebuyers with down payments as low as 3% or 5% have been approved for affordable and well-underwritten mortgages.
In the past year alone, MI has helped more than 1.1 million borrowers purchase or refinance a mortgage. Nearly 60% were first-time homebuyers, and more than 40% had annual incomes below $75,000.
How MI works
In addition to the other elements of the mortgage underwriting process — such as verifying employment and determining the borrower’s ability to afford the monthly payment — lenders require borrowers to commit some of their own money before approving their mortgage loan. This is where MI entered the system more than 60 years ago, to bridge the down payment gap and help creditworthy borrowers qualify for a mortgage without large down payments.
Benefits of MI
MI is a stable, cost-effective way to obtain a low down payment mortgage, and offers distinct benefits to borrowers. It’s been a cornerstone of the U.S. housing market since 1957, providing more than 30 million families with the opportunity to own homes despite financial barriers. If you are considering purchasing a home, it is important to understand your options, including your low down payment options. To learn more, visit LowDownPaymentFacts.org.
Every year, millions of American workers enroll in employee benefits through their workplaces during a period known as annual enrollment. It’s usually a short window of time, but employees make crucial financial decisions for their families for the coming year. In addition to medical insurance, consider these voluntary benefits that can help bridge the gap between what health insurance covers and what you’re financially responsible for.
Help Safeguard Your Family’s Finances
(Family Features) Every year, millions of American workers enroll in employee benefits through their workplaces during a period known as annual enrollment. It's usually a short window of time, but employees make crucial financial decisions for their families for the coming year.
In addition to medical insurance, many employers offer a range of voluntary benefits - those you select and pay for yourself, often by having the cost deducted directly from your paycheck. These voluntary benefits can help bridge the gap between what health insurance covers and what you're financially responsible for, especially as more employees opt for high-deductible health insurance plans.
In fact, according to a poll of 1,512 full-time U.S. workers conducted by employee benefits company Unum, 49% of working adults plan on enrolling in a high-deductible health plan for the coming benefit year, with Millennials (58%) and Gen Z'ers (54%) at even higher rates.
"While high-deductible health plans offer lower monthly payments, that can mean more financial responsibility for policyholders when they need to use the benefit," said personal finance expert Laura Adams. "Combining a high-deductible health plan with a health savings account can offset out-of-pocket costs, but it's also a good idea to consider voluntary benefits like disability, accident and hospital insurance to further financially protect your family."
If an accident, illness or injury prevents you from working, disability insurance replaces a portion of your income. While it may seem unlikely to many they would ever experience a disability, it's more common than some realize. Based on 2019 information from the Social Security Administration, more than 1 in 4 of today's 20-year-olds will become disabled before reaching age 67.
Accident and hospital insurance can pay a lump sum directly to you to offset out-of-pocket costs associated with medical care often not covered by health insurance.
Voluntary benefits, policies and details vary, so it's essential to review your options and discuss with your family before your benefits enrollment begins.
"Investing a little additional time on the front end can help reduce your family's financial risk down the road," Adams said.
For more information about employee benefits, visit Unum.com/benefits.
Photo courtesy of Getty ImagesSOURCE:
Sometimes, while doing some financial planning for future expenses, you may be on the lookout for a bit of extra cash. When listing your assets, you may only think of property, vehicles, and stocks. Have you considered checking the storage you haven’t itemized in ten years, the boxes in your basement, or even the inside of your mouth? Here are three unexpectedly valuable items you may have right under your nose.
Comic Books and Magazines
The most expensive comic book ever sold was a copy of Action Comics #1 that was sold by actor Nicolas Cage for over $2 million, according to Dave & Adam’s Card World. Later editions can be quite valuable as well. For example, Tales of Suspense #39, the first appearance of Tony Stark, is worth up to $350,000. Old magazines usually don’t sell for near as much, but they can be easier to come by. If your great aunt had a subscription to Vogue 30 years ago and has a stack of them in her basement, selling each at $20-$50 can really add up.
You probably think you don’t have any precious metals just lying around, but perhaps you’re just not looking in the right place. Many people today opt for resin fillings and crowns over gold because they look more natural and cost less money. Nevertheless, dental gold is still available, and millions of people have gold crowns and fillings. Though gold is the longest-lasting option for a dental crown, it may need to be replaced after several years, and asking your dentist to keep your old gold crown could be worth it. According to CrownBuyers, with the price of gold at $1000 per ounce, an average gold crown is worth $57.
Many families have stacks of old vinyl records sitting beside their retired record players. Because of track changes, limited releases, and early withdrawal of some albums, there is a list of records that could earn you at least five figures for just having an original copy that is still in mint condition. According to Mental Floss, “The Freewheelin’ Bob Dylan” with the original tracklist and The Beatles’ “Yesterday and Today” with dismembered baby dolls on the sleeve art are some of the most rare finds.
Do you have items of value just sitting in storage? Comics, magazines, dental gold, and vinyl records are common items that many are likely to have, but they are just a few examples. Even if you don’t have these items, you may now be more inspired you to seek value where you never thought possible. It’s time to start looking for your own buried treasure!
If your homeowner insurance rates are creeping up even though you haven’t filed any claims, it may be time to take a look at how you can bring those prices back down. Research, smart shopping and even some home upgrades can make a noticeable difference in your insurance premiums. Explore the cost-savings potential with these tips.
Save Your Way to Lower Home Insurance
(Family Features) If your homeowner insurance rates are creeping up even though you haven’t filed any claims, it may be time to take a look at how you can bring those prices back down.
Research, smart shopping and even some home upgrades can make a noticeable difference in your insurance premiums. Explore the cost-savings potential with these tips from the experts at CertainTeed, a leading manufacturer of exterior and interior building products:
Shop for the best rates. It’s easy to be complacent when you’ve used the same insurance company for years, but if getting the best rate is your objective, it’s a good idea to shop around. To do effective comparison shopping, have a copy of your current policy ready and contact a handful of competitors. Provide them the exact same coverage details so you can compare like rates, but also be ready to listen to information about additional coverage options that may suit your needs.
Combine homeowner insurance with other policies. Most insurance carriers offer multiple policy discounts, which they apply when you insure more than one item. For example, if your homeowner insurance carrier also insures your cars, you’re likely to save money on the rates for protecting both your home and automobiles.
Update your home’s first line of defense. Many homeowners focus on aesthetics when it’s time to make upgrades, but there are some important functional improvements that can make a difference when it comes to your insurance premiums. For example, as extreme weather becomes more commonplace, the first line of defense is often the type of roofing material chosen. Many insurance companies even offer discounts for using impact-resistant shingles. Check with your insurance provider before making a final selection, but in general, look for products that include “impact-resistant” in their name and specs, and “Class IV Impact Resistance,” the highest rating available for roofing materials.
For example, NorthGate Class IV impact-resistant shingles from CertainTeed are engineered to have a higher probability of resisting hail. These shingles are made using rubber-like polymers that offer flexibility and impact resistance, as well as crack and shrink resistance, even in cold weather. So when severe weather strikes, your home can be protected and stay looking good.
Install a home security system. An intruder alarm can provide more than peace of mind. Insurance companies often reward homeowners who take steps to minimize the chances of burglary or vandalism. After all, a well-protected home is less likely to result in a claim for losses. Some companies offer varying degrees of discounts on insurance rates depending on the type of system you install, so be sure to thoroughly research the options. For example, a system that simply emits a loud noise when triggered may generate one level of discount, while a system that dispatches emergency personnel when activated can lead to an even better rate.
Insurance rates are one place to save money on your home costs. Learn more about impact-resistant shingles and how they can save your home and wallet at certainteed.com.SOURCE:
Interested in Publishing on The Money Idea?
Send your query to the Publisher today!
Get this money content for your website with our RSS Feed below!