Have the events of the last few weeks caused you to re-examine some of your goals and priorities? You’re not alone.
Many of us are thinking about how to build a more secure future for our families, and while everyone’s plan will look a little different, it helps to go back to basics if you want to make a fresh start.
Here are a few ways to help to keep your finances as healthy as possible, during both stable and challenging times.
Build a Strong Foundation
- Beware of credit cards. If you decide to use a credit card, commit to timely monthly payments so you don’t rack up too much debt.
- Build an emergency fund. Try to set aside enough to cover a few months of essential expenses, like your mortgage and health insurance payments.
- Protect yourself with insurance. Ensure you have the right life and health insurance policies to safeguard you and your family.
Practice Healthy Habits
- Leave your savings alone (unless it’s an emergency). It might be tempting to borrow money from your retirement plan, but consider restructuring your budget before taking this (potentially costly) step.
- Avoid lifestyle inflation. If you’re financially stable, you may be tempted to upgrade to a larger home or new car. Ask yourself if any big purchases are really necessary.
Focus on the Future
- Continue to save. Even if you get a late start, don’t give up. Putting away 5% (or more) of your paycheck will be doing your future self a big favor.
- Keep retirement top of mind. Take a realistic look at what you’ll receive from Social Security, Medicare and your retirement savings. If the monthly amount isn’t enough, consider ramping up your efforts.
- Don’t put off estate planning. Consider a health care proxy, a power of attorney and a will. By thinking ahead, you can save your loved ones time, stress and money.
Have questions about your policy options or anything else? Reach out anytime.