So you’ve made your New Year’s resolution. And this is going to be the year you really take charge of your family’s finances and build a solid money plan.
But you may not know how to make your resolution a reality – and that’s OK. We’ve pulled together a few simple tips that can help you get started.
Throttle your spending. And jump start your savings.
If you want to build a smarter financial future, then saving more money is a good place to start. And that really boils down to two things – spending less or making more. There are a few ways to both.
If you want to cut your spending, take a look at the non-essentials. Maybe you’re buying too many lattes? (At $5 each, they can add up faster than you think.) Or maybe you’re spending too much at Sephora or shopping on Amazon. If so, take a few steps back and re-evaluate how you’re spending your hard-earned dollars.
Cutting the cable and relying on streaming services can help you save every month, too.
Another way to bolster your savings is to make more money. And that may not be as difficult as you think. If you’re an expert in your field, making extra money can be as simple as consulting about your profession on the side or asking for a promotion the next time you crush a performance review.
Maximize your company’s 401(k) benefits.
If the company you or your spouse works for offers 401(k) perks like matching, then you begin to build your nest egg for retirement by meeting their contribution. After all, it’s part of your company’s benefit package.
Putting money away in your 401(k) is an investment in your family’s future. While you might have to tighten your belt in other areas of your life to make bigger contributions, imaging yourself confident in retirement should make it easier.
Have credit card debt? Work to pay it down.
It’s so easy to pay with plastic – and most Americans do it. In fact, the average American household has more than $6,000 in credit card debt, according to a recent poll conducted by NerdWallet.com. And that debt can come with a high interest rate – more than 20% for some cards.
If you want to pay your credit card debt off quickly, then you should try to make more than the minimum payment every month. (Even if you don’t put more charges on the card, in most cases it literally will take years to pay off a credit card making minimum payments.)
Is your family covered? If not, don’t wait.
As you’re planning for the future, it’s also smart to be sure your family has life insurance coverage in case something happens to you. It’s not a pleasant thought, but it’s one piece of the pie when you’re making a smart money plan.
Having enough coverage to help your family replace your income can make a drastic difference for them – especially if you already have car payments, a mortgage or student loans. Or, if you’re a stay-at-home parent, you may want enough coverage to help with child care expenses.
As you’re working on a budget, think about setting aside enough money to pay a monthly life insurance premium. It likely won’t cost more than a few lunches out – and it can give your family security that's worth much more than that.
Let Our Life Covered Help
If you don’t have coverage yet, Our Life Covered is here to help and support you at every stage of the life insurance shopping journey. You can get started with a quote (it literally takes a few seconds). If you’ve purchased coverage from us, and you or your beneficiary still have questions, please don’t hesitate to reach out, whether it’s by phone (888-828-9760), text (636-590-7416), email, or live chat.