Types of Life Insurance Policies
Happy New Year! Many of us use this time of year to examine our lives and make changes for the positive. Whether we adopt new workout regimens or try to curb a swearing habit, resolutions are a great way to start the year off right. If you've begun this year resolving to take your financial health more seriously, we have a few resolutions for you to embrace.
Much like the crash diet, it's nearly impossible to stay within a budget that is unreasonably austere. To create a manageable budget, start by reviewing your current spending habits (in what areas do you spend your money and how much do you spend). After you've familiarized yourself with your spending habits, make a decision about how much you think is sensible to spend in each area each month. For instance, if you pay for six different streaming services, but think you could cut back to four, start making calls to cancel. These small changes can make a big difference.
According to one 2015 survey, a striking 62% of people admitted they didn't have enough money on-hand to cover a large, unexpected expense. If you're one of these people, one of the most beneficial New Year's resolutions you can make this year is to begin building an emergency fund. This type of savings is a cornerstone of financial safety, protecting you on those rainy days. Many experts recommend that an emergency fund hold three to 6 months of take-home salary*, but if you're just starting out this could be a challenge. A month or two's salary by year's end may be a more modest and attainable goal.
Since your credit score can impact a number of purchases in your present and future, knowing what that score is exactly is an important step in taking control of your finances. Three different agencies - Experian, TransUnion and Equifax - all maintain a credit score for you. While these scores are often similar, they could potentially vary, so it's a good idea to know all three. Luckily, you can check your score with each of these agencies once a year without negatively affecting your credit score.
If your scores aren't where you want them to be, don't fret. You can improve them over time. Pay your bills on time, maintain good standing with your creditors and continue to establish your credit. All of these and more will help your score rise. If you need some extra incentive, consider this: according to myFICO, over the course of a 30-year home mortgage, there is an $88,692 difference between a credit score of 750 and a credit score of 630.
Owning a life insurance policy can be another critical step in helping to secure your financial future. If you have family or assets to protect, life insurance can help ensure that they will not be financially burdened if something were to happen to you. A life insurance policy can help pay off a mortgage, cover college tuition expenses, pay for day care and more. This type of financial assistance can be critical in a household that has lost half its income. What's more, life insurance is typically affordable. To find a policy and a rate that fit your needs, you can get started today by requesting a free quote.
By making (and keeping) a few of your resolutions this year, you can set yourself up for a bright financial future. We hope that 2017 is as successful as it is joyful for you and yours.