Cornerstone Insurance Agency Blog
Financial planning gets more and more complicated as you get older. Moreover, these days, financial planning is not as simple as before. There are just too many financial products out there and so it is easy for you to get overwhelmed and confused by the sheer amount of information out there. Your financial responsibilities further compound your confusion.
This explains the need to get the basics right. If you want to be in control of your everyday financial decisions, then you need to have a solid financial foundation. This will help you to avoid the usual pitfalls of personal finance. Moreover, it can help you master your life and guarantee you a safe and financially-free future.
Here are five areas that are critical to your financial future.
Build Your Emergency Savings
You've probably heard this word so many times that you already forgot how important it is. Your emergency fund is a cushion of cash that will save you from minor emergencies and will help you through life changes as well as inevitable hiccups of life like a sudden illness of a family member. Emergency savings can always help reduce your stress in case you encounter the unexpected.
Your emergency fund is 6 months worth of living expenses. If this is your aim, you should go for a high-deductible insurance plan. Do not get overwhelmed so start small until you can eventually build your momentum.
Organize Your Banking
The only way to safeguard yourself and your finances from hidden fees is by keeping your banking organized. At any point in your life you will be confronted with account maintenance fees, bank overdraft charges and unexpected increases in your mortgage and taxes.
Do not go for banks with charges, and set up automatic debits from your account to ensure that your bills get paid on time. Also, have another bank account for your emergency funds and another for short-term necessities. If your banking is organized, you will be able to handle financial stresses better.
Always Secure Your Identity
Smart shopping will help you avoid identity theft. Use a credit card for online transactions so that it would be easier to get refunds for fraud cases. Moreover, remember or write down your passwords or else you will have more trouble than just losing your money. Another thing is never click emails that are not coming from the official email address of your bank or does not show your bank's official website address.
Keep a Record of Your Finances
No matter how tedious or boring it can be, this is actually the most important part of arranging your finances. Keep your finances in order so that you can spot fraudulent activity and errors in your bill payments. Keep track of your cash inflow and outflow so that you will know whether you are spending beyond your means already.
Moreover, feel gratified at how much compound interest is doing to your savings accounts. Feel scared too about the effects of compound interest on your credit card balance. One way or the other, it will teach you to maximize cash inflow and minimize all outflows. Besides, you can use your records as a guide for better taxes.
Get Life Insurance
The importance of life insurance in family and personal finance cannot be emphasized heavily enough. Whether you are married or single or whether you own your home or you're renting it, your insurance coverage can spare you worries and financial troubles in case there is an emergency. This should be enough to encourage you to check the coverage of your existing insurance policy.
Some Final Words
If you truly love yourself and your family, then you have to seriously get your finances straight. If you already currently have a life insurance policy, you can add premiums and coverages to it. That step will make you worry less about your financial future. At Cornerstone Insurance Agency, we put our clients first by offering them policies that they can afford. Learn more about our products and services by calling our agency at (888) 661-8831. You can also request for a free quote by CLICKING HERE.