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The First Steps To Improving Your Financial Security

The First Steps To Improving Your Financial Security

March 24, 2020
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With everything going on right now, many people are feeling insecure about their financial picture. Financial Security takes time. It doesn't happen overnight and is a multi-step process. So lets talk about it!!! Here are some of the first stages to consider.......

The First Steps of Improving Your Financial Security

How well you manage your money now will determine your financial security in the future, which can affect virtually every aspect of your life. And whether you’re a twentysomething with poor credit or a retiree with a healthy investment portfolio, there is almost always room for improvement when it comes to budgeting, saving, and spending.

By examining the state of your finances and readjusting your money management, you can help yourself get and/or stay on track so that you and your loved ones are in a good position now and in the future. While this does require discipline and good decision-making, it’s not as difficult as you may think. Here are some practical financial tips to get you started.

Consider Your Insurance Policies

Insurance is essential to financial security. When you have adequate coverage, your insurance policy will step in following an accident, medical issue, unexpected death, and a number of other instances. So, sit down and make a list of your priorities and goals, and then determine what kind of insurance you want for you and your family (e.g., life insurance, health insurance, auto insurance). Furthermore, review all your policies once a year to see if your needs are being met or if you should add or remove certain types of coverage.s

Learn About Your Funeral Rights

This tip may have surprised you, but it’s an important one. Funerals are expensive, and when your family hasn’t prepared for the costs, it can do real damage to your finances. Learning more about funerals and how to approach them will help you decide on a budget, what kind of funeral to have, what funeral home to use, and other essential factors. What’s more, you need to understand your rights when it comes to funerals, or else the process can be even more costly. The more you know about your rights, the better prepared you will be when that day comes.

One type of insurance people often neglect is burial insurance. With funerals in the U.S. averaging $7,000 - $10,000, burial insurance can help your family pay for your funeral if the unexpected happens. This type of policy can also be used to pay off credit card and medical debts. It’s easier to qualify for burial insurance than life insurance, and you won’t need a medical examination.

Strategize Your Spending 

The key to financial freedom and stability is controlling where your money goes. This sounds simple, but it’s easy to lose track of little purchases here and there. And these little purchases add up over time. Develop a monthly or weekly budget where you separate your fixed expenses and variable expenses, as well as your needs and wants. Don’t forget to leave room for saving. Ideally, you will be able to save about 20 percent of your monthly income. But if you’re not in a position to do that at the moment, be sure to at least save something.

Automate.

Automation is a wonderful benefit of technology, as it allows you to save money and pay bills without putting much thought into it. Review all your bills and set them up to be automatically paid from your bank account. Also, if possible, set your paycheck up for direct deposit, and have a certain amount automatically transferred to your savingseach payday. These practices will help to simplify your budgeting and keep you accountable to your saving goals.

Managing your money well is vital to the well-being of you and your family. So, be sure to look over your insurance policies and make any necessary adjustments, and educate yourself on funeral costs and rights. Come up with a realistic budget, and automate your bills and savings. These tips can help you get going in the right direction, but be sure to do further research and stay open to other ways you can improve your financial security.

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