Financial abundance can be yours if you follow a few basic ideas that allow for success. Learn and utilize these basics and you’ll be surprised at how quickly you achieve wealth, as well as have a plan to protect that wealth.
Legal protection is one of these basics. What good does it do you to build up a sizeable retirement nest egg only to lose it in a lawsuit? Be sure to set up your will, living will and have access to legal advice whenever you need it.
Health insurance should be part of your plan. You want to ensure that your kids, spouse and yourself have adequate coverage in this area. Does your job offer coverage? If so, take advantage of it.
If not, find outside coverage. If you’re self employed or if your job doesn’t offer any health insurance coverage, you can seek out companies that specialize in providing small business owners coverage.
Don’t get caught with inadequate auto insurance. Obviously, auto insurance is necessary, but not for the reason you may think. Yes, it’s vital if you’re involved in a car accident to cover any damages. However, most people don’t have enough auto insurance coverage.
Are you currently covered only at your state minimum coverage amounts? If so, why? If you’re at fault for a car accident, don’t you think you could be sued for an amount much larger than what your minimum coverage is set at? Seriously consider raising your auto insurance coverage to much higher levels to make sure you’re properly covered.
Make it a priority to get out of debt as quickly as possible. Carrying a lot of credit card and personal debt is a detriment to achieving wealth. Rather than putting money away for your future, you are supplying your creditors their future with your monthly debt payments. Getting out of debt must be a chief aim and something you work toward each month.
If you currently rent, you’re probably aware of the fact that you’re throwing away money on rent by not investing in your own home. Your financial planner should be able to offer you a “rent vs own analysis” that shows you clearly the long-term benefits of owning your own home as opposed to continuing to rent.
Once you see the difference of owning, you’ll be more motivated to pay off your consumer debt and save toward a down-payment on your first home.
A vital aspect of personal finance is to establish an emergency fund. You can contribute a monthly amount of money into a money market fund until you’ve built up at least three to six months of income into our emergency fund. Now, when the car breaks down or the washing machine needs replacing, you can use cash instead of going back to racking up credit card debt.
You’ll see the financial prosperity that is possible once you’ve followed a few, simple personal finance basics.Finance