Tag Archives: Family

How to Set Financial Goals: A Simple, Step-By-Step Guide

Saving money is all well and good in theory.

It’s pretty hard to argue against having more money in the bank.

But what are you saving for? If you don’t have solid financial goals, all those hoarded pennies might end up in limbo when they could be put to good use.

Figuring out where your money should go might seem daunting, but it’s actually a lot of fun.

You get to analyze your own priorities and decide exactly what to do with your hard-earned cash.

But to make the most of your money, follow a few best practices while setting your goals.

After all, even if something seems like exactly what you want right now, it might not be in future-you’s best interest. And you’re playing the long game… that’s why they’re called goals!

What to Do Before You Start Writing Your Financial Goals

To help keep you from financial goals like “buy the coolest toys and cars,” which could easily get you deeply into debt while you watch your credit score plummet, we’ve compiled this guide.

It’ll help you set goals and create smart priorities for your money. That way, however you decide to spend your truly discretionary income, you won’t leave the 10-years-from-now version of you in the lurch.

First Thing’s First: How Much Money Do You Have?

You can’t decide on your short- or long-term financial goals if you don’t know how much money you have or where it’s going.

And if you’re operating without a budget, it can be easy to run out of money well before you run out of expenses — even if you know exactly how much is in your paycheck.

So sit down and take a good, hard look at all of your financial info.

A ton of great digital apps can help you do this — here are our favorite budgeting apps — but it can be as simple as a spreadsheet or even a good, old-fashioned piece of paper. It just takes two steps:

  1. Figure out how much money you have. It might be in checking or savings accounts, including long-term accounts like IRAs. Or, it might be wrapped up in investments or physical assets, like your paid-off car.
  2. Assess any debts you have. Do you keep a revolving credit card balance? Do you pay a mortgage each month? Are your student loans still hanging around?

Take the full amount of money you owe and subtract it from the total amount you have, which you discovered in step one. The difference between the two is your net worth. That’s the total amount of money you have to your name.

If it seems like a lot, cool. Hang tight and don’t let it burn a hole in your pocket. We’re not done yet.

If it seems like… not a lot, well, you can fix that. Keep reading.

A woman creates a monthly budget while sitting on her bed. The sheets are white with a floral pattern on them. This story is about how to set up financial goals.

Create a Budget

Once you’ve learned your net worth, you need to start thinking about a working budget.

This will essentially be a document with your total monthly income at the top and a list of all the expenses you need to pay for every month.

And I do mean all of the expenses — even that $4.99 recurring monthly payment for your student-discounted Spotify account definitely counts.

Your expenses probably include rent, electricity, cable or internet, a cell phone plan, various insurance policies, groceries, gas and transportation. It also includes categories like charitable giving, entertainment and travel.

Pro Tip

Print out the last two or three months of statements from your credit and debit cards and categorize every expense. You can often find ways to save by discovering patterns in your spending habits.

It’ll depend on your individual case — for instance, I totally have “wine” as a budget line item.

See? It’s all about priorities.

Need to go back to basics? Here’s our guide on how to budget.

Start by listing how much you actually spent in each category last month. Subtract your total expenses from your total income. The difference should be equal to the amount of money left sitting in your bank account at month’s end.

It’s also the money you can use toward your long-term financial goals.

Want the number to be bigger? Go back through your budget and figure out where you can afford to make cuts. Maybe you can ditch the cable bill and decide between Netflix or Hulu, or replace a takeout lunch with a packed one.

You don’t need to abandon the idea of having a life (and enjoying it), but there are ways to make budgetary adjustments that work for you.

Set the numbers you’re willing to spend in each category, and stick to them.

Congratulations. You’re in control of your money.

Now you can figure out exactly what you want to do with it.

Setting Financial Goals

Before you run off to the cool-expensive-stuff store, hold on a second.

Your financial goals should be (mostly) in this order:

  1. Build an emergency fund.
  2. Pay down debt.
  3. Plan for retirement.
  4. Set short-term and long-term financial goals.

We say “mostly” because it’s ultimately up to you to decide in which order you want to accomplish them.

Many experts suggest making sure you have an emergency fund in place before aggressively going after your debt.

But if you’re hemorrhaging money on sky-high interest charges, you might not have much expendable cash to put toward savings.

That means you’ll pay the interest for a lot longer — and pay a lot more of it — if you wait to pay it down until you have a solid emergency fund saved up.

1. Build an Emergency Fund

Finding money to sock away each month can be tough, but just starting with $10 or $25 of each paycheck can help.

You can make the process a lot easier by automating your savings. Or you can have money from each paycheck automatically sent to a separate account you won’t touch.

You also get to decide the size of your emergency fund, but a good rule of thumb is to accumulate three to six times the total of your monthly living expenses. Good thing your budget is already set up so you know exactly what that number is, right?

You might try to get away with a smaller emergency fund — even $1,000 is a better cushion than nothing. But if you lose your job, you still need to be able to eat and make rent.

2. Pay Down Debt

Now, let’s move on to repaying debt. Why’s it so important, anyway?

Because you’re wasting money on interest charges you could be applying toward your goals instead.

So even though becoming debt-free seems like a big sacrifice right now, you’re doing yourself a huge financial favor in the long run.

There’s lots of great information out there about how to pay off debt, but it’s really a pretty simple operation: You need to put every single penny you can spare toward your debts until they disappear.

One method is known as the debt avalanche method, which involves paying off debt with the highest interest rates first, thereby reducing the overall amount you’ll shell out for interest.

For example, if you have a $1,500 revolving balance on a credit card with a 20% APR, it gets priority over your $14,000, 5%-interest car loan — even though the second number is so much bigger.

Pro Tip

If you’re motivated by quick wins, the debt snowball method may be a good fit for you. It involves paying off one loan balance at a time, starting with the smallest balance first.

Make a list of your debts and (ideally) don’t spend any of your spare money on anything but paying them off until the number after every account reads “$0.” Trust me, the day when you become debt-free will be well worth the effort.

As a bonus, if your credit score could be better, repaying revolving debt will also help you repair it — just in case some of your goals (like buying a home) depend upon your credit report not sucking.

A retired woman floats in a circular floating device in a swimming pool.

3. Plan for Retirement

All right, you’re all set in case of an emergency and you’re living debt-free.

Congratulations! We’re almost done with the hard part, I promise.

But there’s one more very important long-term financial goal you most definitely want to keep in mind: retirement.

Did you know almost half of Americans have absolutely nothing saved so they can one day clock out for the very last time?

And the trouble isn’t brand-new: We’ve been bad enough at saving for retirement over the past few decades that millions of today’s seniors can’t afford to retire.

If you ever want to stop working, you need to save up the money you’ll use for your living expenses.

And you need to start now, while compound interest is still on your side. The younger you are, the more time you have to watch those pennies grow, but don’t fret if you got a late start — here’s how to save for retirement in your 20s, 30s, 40s and 50s.

If your job offers a 401(k) plan, take advantage of it — especially if your employer will match your contributions! Trust me, the sting of losing a percentage of your paycheck will hurt way less than having to work into your golden years.

Ideally, you’ll want to find other ways to save for retirement, too. Look into individual retirement arrangements (IRAs) and figure out how much you need to contribute to meet your retirement goals.

Future you will thank you. Heartily. From a hammock.

FROM THE BUDGETING FORUM
Starting a budget
S
A reminder NOT to spend.
Jobelle Collie
Grocery Shopping – How far away is your usual store?
F
Budgeting 101
Ashley Allen
See more in Budgeting or ask a money question

4. Set Short-Term and Long-Term Financial Goals (the Fun Part!)

Is everything in order? Amazing!

You’re in awesome financial shape — and you’ve made it to the fun part of this post.

Consider the funds you have left — and those you’ll continue to earn — after taking care of all the financial goals above. Now think: What do you want to do with your money?

What experiences or things can your money buy to significantly increase your quality of life and happiness?

You might plan to travel more, take time off work to spend with family or drive the hottest new Porsche.

Maybe you want to have a six-course meal at the finest restaurant in the world or work your way through an extensive list of exotic and expensive wines. (OK, I’ll stop projecting.)

No matter your goals, it’s helpful to categorize them by how long they’ll take to save for.

Make a list of the goals you want to achieve with your money and which category they fall into. Then you can figure out how to prioritize your savings for each objective.

For example, some of my goals have included:

  • Short-term financial goal: Save spending money for a trip overseas.
  • Medium-term financial goal: Pay off my car within a year, or sell it — and its onerous loan — and buy an older car I can own free and clear.
  • Long-term financial goal: Buy a house I can use as a home base and increase my income by renting it out while I travel. This will probably take me through the rest of my 20s.

By writing down my short- and long-term financial goals and approximately how long I expect it will take to achieve each, I can figure out what to research and how aggressively I need to plan for each goal.

It also offers me the opportunity to see what I prioritize — and to revise those priorities if I see fit.

Jamie Cattanach (@jamiecattanach) is a contributor to The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com

Greystone Mansion: the Most Familiar House You’ve Never Visited

There’s this mansion in Beverly Hills that a large part of the world’s population has already seen, even though they might not realize it.

It’s a historic house that’s been used in endless Hollywood movies, TV series, and music videos. After you finish reading this article, you might just realize that you’ve seen this house before, too. Well, now you will also know its history, and when you see it again on your TV screen (and more than likely, you will), you’ll recognize it. 

The place we’re referring to is known as Greystone Mansion or Doheny Mansion, and it’s located at 905 Loma Vista Drive in Beverly Hills. The Tudor Revival mansion was originally completed in 1928, after three years’ worth of construction and a total cost of over $4 million — an insane amount at the time. 

aerial view of Greystone Mansion
Greystone Mansion aerial view. Image credit: Luxury Architecture

The inception of Doheny Mansion

The 55-room, 46,000-square-foot mansion lies on a 16-acre site within Trousdale Estates. It was designed by architect Gordon Kaufmann and built by the P.J. Walker Company. The land was actually a wedding gift from oil tycoon Edward Doheny to his son, Edward ‘Ned’ Doheny, and his new wife, Lucy Smith. 

Edward Doheny was an American oil tycoon who drilled the first oil well in Los Angeles in 1892. His story was depicted in the Academy Award-winning movie There Will Be Blood, starring Daniel Day-Lewis. Interestingly enough, the movie was actually filmed at Doheny Mansion. 

Ned Doheny’s house became known as Greystone because it was built mainly of stone, and has a grey, stone-cold appearance. The house took roughly three years to build, and included stables, kennels, tennis courts, a gatehouse, a swimming pool and pavilion, a lake with babbling brooks and waterfalls, and even a fire station. 

old photo of the Greystone Mansion driveway
Greystone Mansion driveway. Image credit: Friends of Greystone Mansion

A bittersweet move-in for the Dohenys

Unfortunately, Ned Doheny didn’t get to enjoy his new home for too long. Just four months after moving into Greystone Mansion, Doheny was found dead in the house, alongside his secretary and friend, Hugh Plunkett. The case was ruled a murder-suicide, however, some claim that there’s more to that story.

Doheny was killed by his own gun, and he was not buried with the rest of his family, but in a different cemetery, just a few yards away from where Plunkett was laid to rest. This has led some to believe that Doheny might have committed suicide, however, this is just a theory that certainly adds a bit of mystery to Greystone Mansion. 

Greystone Mansion exterior
Greystone Mansion exterior. Image credit: The City of Beverly Hills

Following Ned Doheny’s death, his wife Lucy remarried and lived in the house with her children until 1955. Greystone Mansion was later sold to Paul Trousdale, the developer of Trousdale Estates, who then sold it to Henry Crown of Chicago. The businessman never actually lived in the house, but leased it out to film studios — and that’s how Greystone’s prolific movie career started. 

Greystone Mansion, Hollywood’s favorite filming location

Over the decades, Greystone Mansion has been featured in numerous Hollywood movies and TV series, including classics like The Big Lebowski, Eraserhead, The Witches of Eastwick, Death Becomes Her, Batman & Robin, The Bodyguard, Dark Shadows, The Prestige, The Social Network, and X-Men.

The mansion has also made appearances in TV series, including Alias and The Young and the Restless, and it also played the part of Chilton Academy in Gilmore Girls

Gilmore Girls scene filmed at Greystone Mansion
Gilmore Girls scene filmed at Greystone Mansion, featuring the home’s famous staircase

Last but not least, Greystone Mansion has been featured in commercials and even music videos. You might have already toured the house alongside Robert Downey Jr., in the music video for Elton John’s single I Want Love. Let us refresh your memory:

In 1965, the City of Beverly Hills purchased Greystone Mansion, and a few years later, the property became a public city park. It was added to the National Register of Historic Places in 1976, as Doheny Estate/Greystone.

The mansion continues to be used as a filming location and a destination for special events such as music festivals, fundraisers, and even weddings. Greystone Mansion houses the Beverly Hills Flower & Garden Festival, the yearly Catskills West drama camp, and The Annual Hollywood Ball, among others. 

Greystone Mansion public gardens
Greystone Mansion public gardens. Image credit: Love Beverly Hills

A carefully preserved slice of L.A. history

Greystone Mansion is a remarkable feat of architecture, and most of its original features have been carefully preserved over the years. The property features hand-carved oak banisters, balustrades and rafters, seven chimneys, each designed by a different artist, a movie theater room, a billiard room, a hidden bar, and a two-lane original Brunswick bowling alley. The alley was renovated so that it could be used by the filming crew for There Will Be Blood. 

The bowling alley at Greystone Mansion
The bowling alley at Greystone Mansion. Image credit: The City of Beverly Hills

There’s a grand hall with distinctive, black-and-white marble floors and a very famous staircase. In fact, the staircase at Greystone Mansion has been featured in numerous productions, due to its majestic appearance. 

The grand hall and staircase at Greystone Mansion
The grand hall and staircase at Greystone Mansion. Image credit: Love Beverly Hills

Greystone Mansion also included a servant’s quarters that took up two entire floors on the east wing and was built to accommodate a live-in staff of 15.

Greystone Mansion plan. Image credit: The City of Beverly Hills

There was also a living room with a balcony where musicians performed at special events, and a kitchen pantry with a secret wall safe that held the family’s silver and gold kitchenware.

Greystone Mansion interior
Greystone Mansion interior. Image credit: The City of Beverly Hills

This stunning, stone-clad Beverly Hills mansion continues to attract filming crews, and we’re definitely going to be seeing it again on the big screen. At the same time, its beautiful, lush gardens and its rich history will continue to attract visitors from around the world.

Here’s a further glimpse into the mansion’s history, to keep you occupied until you get a chance to visit in person:

Featured image courtesy of The City of Beverly Hills

More stories you might enjoy

Here’s the Estate that Served as Inspiration for “The Great Gatsby’s” Opulent House in the 2013 Movie|
The Beverly House, where Jackie O & JFK Honeymooned and where Coppola Shot “The Godfather”
Richie Rich’s House is Actually the Biltmore Estate, America’s Largest Home
Where to Find the Real Carrington Manor from ‘Dynasty’

The post Greystone Mansion: the Most Familiar House You’ve Never Visited appeared first on Fancy Pants Homes.

Source: fancypantshomes.com

Back to School: Home Office Essentials

Back to school season is in full swing, and that means your kids will be coming home with more and more homework. They will need a productive space to study, and your home office can be a good option. But the office may need a few essentials before it’s ready for the school year.

Get Good Lighting

Studying in the dark can strain your eyes or put you to sleep. To avoid the likelihood of snoozing during study time, you’ll want to have adequate lighting. Add a small desk lamp, a floor lamp, or a brighter bulb in your overhead lighting.

Create Comfort

Your kids will ideally spend a lot of time studying in the office. Make it comfortable. Invest in a good chair or a lumbar support cushion.

Keep Supplies Within Reach

Your kids may need pens, pencils, paper clips, glue sticks, and all of the things on their long back to school shopping list. Try to fit the necessary supplies in arms reach. Set up pencil holders on the desk surface, or dedicate a drawer to school supplies. If they can simply grab what they need, they’ll be likely to save time and stay on track.

Be Organized

People are more productive when they work in an organized space. So instead of throwing supplies and papers anywhere, make sure everything has a place. Invest in folders, binders, and a file cabinet (and make sure the entire family uses them).

Decorate

Creative work is done best in a visually pleasing space, so don’t skimp when it comes to interior design. Personalize the space and make it one where your family actually enjoys spending time.

Get your home office in shape. Your entire family may be more productive as a result.

The post Back to School: Home Office Essentials first appeared on Century 21®.

Source: century21.com

Budgeting for Beginners: These 5 Steps Will Help You Get Started

Setting up a budget is challenging. Doing it forces you to face your spending habits and then work to change them.

But when you decide to make a budget, it means you’re serious about your money. Maybe you even have some financial goals in mind.

The end result will bring you peace of mind. But if you’re creating a budget for the first time, remember that budgets will vary by individual and family. It’s important to set up a budget that’s a fit for YOU.

Budgeting for Beginners in 5 Painless Steps

Follow these basic steps and tailor them to your needs to create a monthly budget that will set you up for financial success.

Step 1: Set a Financial Goal

First thing’s first: Why do you want a budget?

Your reason will be your anchor and incentive as you create a budget, and it will help you stick to it.

Set a short-term or long-term goal. It can be to pay off debts like student loans, credit cards or a mortgage, or to save for retirement, an emergency fund, a new car, a home down payment or a vacation.

For example, creating a budget is a must for many people trying to buy their first home. But it shouldn’t stop there. Once you’ve bought a home, keep sticking to a budget in order to pay off debt and give yourself some wiggle room for unexpected expenses.

Once one goal is complete, you can move on to another and personalize your budget to fit whatever your needs are.

Step 2: Log Your Income, Expenses and Savings

You’ll want to use a Microsoft Excel spreadsheet or another budget template to track all of your monthly expenses and spending. List out each expense line by line. This list is the foundation for your monthly budget.

Tally Your Monthly Income

Review your pay stubs and determine how much money you and anyone else in your household take home every month. Include any passive income, rental income, child support payments or side gigs.

If your income varies, estimate as best as you can, or use the average of your income for the past three months.

Make a List of Your Mandatory Monthly Expenses

Start with:

  1. Rent or mortgage payment.
  2. Living expenses like utilities (electric, gas and water bills), internet and phone.
  3. Car payment and transportation costs.
  4. Insurance (car, life, health).
  5. Child care.
  6. Groceries.
  7. Debt repayments for things like credit cards, student loans, medical debt, etc.

Anything that will result in a late fee for not paying goes in this category.

List Non-Essential Monthly and Irregular Expenses

Non-essential expenses include entertainment, coffee, subscription and streaming services, memberships, cable TV, gifts, dining out and miscellaneous items.

Don’t forget to account for expenses you don’t incur every month, such as annual fees, taxes, car registration, oil changes and one-time charges. Add them to the month in which they usually occur OR tally up all of your irregular expenses for the year and divide by 12 so you can work them into your monthly budget.

Pro Tip

Review all of your bank account statements for the past 12 months to make sure you don’t miss periodic expenses like quarterly insurance premiums.

A woman with a dog reviews financial docements spread out on the floor.

Don’t Forget Your Savings

Be sure to include a line item for savings in your monthly budget. Use it for those short- or long-term savings goals, building up an emergency fund or investments.

Figure out how much you can afford — no matter how big or small. If you get direct deposit, saving can be simplified with an automated paycheck deduction. Something as little as $10 a week adds up to over $500 in a year.

Step 3: Adjust Your Expenses to Match Your Income

Now, what does your monthly budget look like so far?

Are you living within your income, or spending more money than you make? Either way, it’s time to make some adjustments to meet your goals.

How to Cut Your Expenses

If you are overspending each month, don’t panic. This is a great opportunity to evaluate areas to save money now that you have itemized your spending. Truthfully, this is the exact reason you created a budget!

Here are some ways you can save money each month:

Cut optional outings like happy hours and eating out. Even cutting a $4 daily purchase on weekdays will add up to over $1,000 a year.

Consider pulling the plug on cable TV or a subscription service. The average cost of cable is $1,284 a year, so if you cut the cord and switch to a streaming service, you could save at least $50 a month.

Fine-tune your grocery bill and practice meal prepping. You’ll save money by planning and prepping recipes for the week that use many of the same ingredients. Use the circulars to see what’s on sale, and plan your meals around those sales.

Make homemade gifts for family and friends. Special occasions and holidays happen constantly and can get expensive. Honing in on thoughtful and homemade gifts like framed pictures, magnets and ornaments costs more time and less money.

Consolidate credit cards or transfer high-interest balances. You can consolidate multiple credit card payments into one and lower the amount of interest you’re paying every month by applying for a debt consolidation loan or by taking advantage of a 0% balance-transfer credit card offer. The sooner you pay off that principal balance, the sooner you’ll be out of debt.

Refinance loans. Refinancing your mortgage, student loan or car loan can lower your interest rates and cut your monthly payments. You could save significantly if you’ve improved your credit since you got the original loan.

Get a new quote for car insurance to lower monthly payments. Use a free online service to shop around for new quotes based on your needs. A $20 savings every month is $20 that can go toward savings or debt repayments.

Start small and see how big of a wave it makes.

Oh, and don’t forget to remind yourself of your financial goal when you’re craving Starbucks at 3 p.m. But remember that it’s OK to treat yourself — occasionally.

A couple organize tax-related paperwork.

What to Do With Your Extra Cash

If you have money left over after paying for your monthly expenses, prioritize building an emergency fund if you don’t have one.

Having an emergency fund is often what makes it possible to stick to a budget. Because when an unexpected expense crops up, like a broken appliance or a big car repair, you won’t have to borrow money to cover it.

When you do dip into that emergency fund, immediately start building it up again.

Otherwise, you can use any extra money outside your expenses to reach your financial goals.

Here are four questions to ask yourself before dipping into your emergency fund..

Step 4: Choose a Budgeting Method

You have your income, expenses and spending spelled out in a monthly budget, but how do you act on it? Trying out a budgeting method helps manage your money and accommodates your lifestyle.

Living on a budget doesn’t mean you can’t have fun or splurges, and fortunately many budgeting methods account for those things. Here are a few to consider:

  • The Envelope System is a cash-based budgeting system that works well for overspenders. It curbs excess spending on debit and credit cards because you’re forced to withdraw cash and place it into pre-labeled envelopes for your variable expenses (like groceries and clothing) instead of pulling out that plastic. 
  • The 50/20/30 Method is for those with more financial flexibility and who can pay all their bills with 50% of their income. You apply 50% of your income to living expenses, 20% toward savings and/or debt reduction, and 30% to personal spending (vacations, coffee, entertainment). This way, you can have fun and save at the same time. Because your basic needs can only account for 50% of your income, it’s typically not a good fit for those living paycheck to paycheck.
  • The 60/20/20 Budget uses the same concept as the 50/20/30, except you apply 60% of your income to living expenses, 20% toward savings and/or debt reduction, and 20% to personal spending. It’s a good fit for fans of the 50/20/30 Method who need to devote more of their incomes to living costs.
  • The Zero-Based Budget makes you account for all of your income. You budget for your expenses and bills, and then assign any extra money toward your goals. The strict system is good for people trying to pay off debt as fast as possible. It’s also beneficial for those living to paycheck to paycheck.
A hand writes financial-related labels on envelopes.

Budgeting Apps

Another money management option is to use a budgeting app. Apps can help you organize and access your personal finances on the go and can alert you of finance charges, late fees and bill payment due dates. Many also offer free credit score monitoring.

FROM THE BUDGETING FORUM
Starting a budget
S
A reminder NOT to spend.
Jobelle Collie
Grocery Shopping – How far away is your usual store?
F
Budgeting 101
Ashley Allen
See more in Budgeting or ask a money question

Step 5: Follow Through

Budgeting becomes super easy once you get in the groove, but you can’t set it and forget it. You should review your budget monthly to monitor your expenses and spending and adjust accordingly. Review checking and savings account statements for any irregularities even if you set bills to autopay.

Even if your income increases, try to prioritize saving the extra money. That will help you avoid lifestyle inflation, which happens when your spending increases as your income rises.

The thrill of being debt-free or finally having enough money to travel might even inspire you to seek out other financial opportunities or advice. For example, if you’re looking for professional help, set up a consultation with a certified financial planner who can assist you with long-term goals like retirement and savings plans.

Related: How to Budget: The Ultimate Guide

Stephanie Bolling is a former staff writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com

Health Insurance Myths Debunked

A health insurance policy is essential for anyone seeking to safeguard their future and avoid the catastrophic consequences of high medical bills. Whether you’re buying coverage for yourself or a health plan for your family, it’s important to get complete coverage. But despite this fact, millions of Americans remain uninsured, often because they believe one of the following health insurance myths.

Myth 1: I’m Young and Healthy; I Don’t Need Health Insurance

You’re never too young to start shopping for health insurance plans because you don’t know what’s around the corner. Medical expenses can be astronomical at any age and anyone can have an accident, fall ill or be diagnosed with a serious disease. 

It’s not pleasant to think about and many people prefer to bury their heads in the sand and live as if they are invincible, but they’re not. No one is.

Health care is very expensive in the United States, there’s no escaping that fact. This is one of the few developed nations in the world where being the victim of an accident or attack could lead to insurmountable medical expenses and essentially ruin your life. You can’t rely on luck and you can’t assume you’ll be safe just because you’re young, fit, and healthy.

In fact, buying at this young age has many benefits, including the fact that you’ll likely clear all exclusion periods by the time you actually need to start claiming.

Myth 2: The Benefits are Lost if I Don’t Renew by the Due Date

You should always try to pay your monthly premium on time, thus avoiding any issues and ensuring you are covered at all times. However, your health insurance coverage does not end the minute you miss a payment.

Insurance companies have a grace period, during which time your policy will remain active. This period allows you to gather the funds needed and to pay your monthly premium, thus keeping your policy active. 

Typically, this grace period lasts for between 7 and 15 days, but it differs from provider to provider. Check your policy for more details but try to avoid playing fast and loose with your payments as they could be the only thing protecting you.

Myth 3: It’s All About the Deductible

The deductible is the amount of money you pay before the health insurance policy takes over and to many consumers, it is the single most important part of any health insurance policy. However, while it is important to consider the deductible, you should not choose your policies based solely on which one has the lowest deductible.

Look for the sort of cover that they provide and whether this will suit your needs or not, and then focus on the deductible. 

It’s also important to find the right balance between a deductible that is cheap enough for you to afford when the time comes, but is not so cheap that it sends the premiums through the roof. To do this, avoid focusing on how much your first monthly payment will cost and ask yourself what you would do if you had to pay for a medical expense today.

Would you have an issue paying the deductible? Would it require you to borrow money from friends or family? If so, it’s too high and it’s time to go back to the drawing board.

Myth 4: I Have Insurance from My Employer so I Don’t Need any Additional Cover

If your employer offers any kind of group health insurance cover, take it, but don’t assume that it will cover you for everything you need. Read the small print, look for gaps, and seek to fill those gaps with your own cover.

With your own policy, you’ll also be protected if you lose your life. If anything happens in the time it takes you to find a new job, you could be left to foot the bill, making this an even scarier and more stressful time. But if you’re covered, you can take your time as you search for a suitable role.

Myth 5: It’s Not a Pre-Existing Condition if I Didn’t Know About it

If you have any pre-existing medical conditions you will be subject to an exclusion period, one that may last for up to 48 months. During this time, your insurance company will not pay out for any issues related to this condition and contrary to popular belief, not knowing about the condition is not enough to avoid this exclusion period.

If, somehow, it is proven that you had a medical condition that was simply not discovered at the time you applied, it will still be subject to an exclusion period. The good news, however, is that you can no longer be refused because of pre-existing medical conditions, which means that everyone can benefit from health insurance.

Myth 6: I Don’t Need Health Insurance If I Have a Life Insurance Plan

A life insurance policy can cover you for critical illness, which could be used to cover health care costs. You can also purchase accident and dismemberment insurance to cover you in the event you lose a limb. However, life insurance is designed to pay out a death benefit when you die. It goes to your loved ones, not you, and is therefore not a viable replacement for health insurance.

For complete cover, you should look into getting both life insurance and health insurance. You can find low-cost options for both.

Summary: Common Myths Debunked

If you don’t have any health insurance coverage, it’s time to change that and start looking for coverage today. Take a look at our guide to choosing a health plan to get started. We also have guides on everything from life insurance (term life insurance, whole life insurance, and other life insurance coverage) car insurance and pretty much all other insurance products.

By purchasing all of these together you could even save some money while getting essential coverage! Just remember to do your research, plan ahead, and never settle for less than you need as you may live to regret it in the future.

Health Insurance Myths Debunked is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

How To Create A Budget Friendly Spread For Fourth Of July

Nothing says summertime like a BBQ, and getting friends and family together for some food and friends for the Fourth of July is the perfect way to celebrate. I’m usually the host for these get-togethers, and even though I absolutely love having people over, feeding everyone can take a toll on your budget, especially with a big family like mine.

Now that I’ve been using Mint to keep track of expenses, here are some tips on how to have a cost-conscious Fourth of July spread:

1) Declare the BBQ a Potluck.

There’s no secret here: potlucks save money AND time. When you invite your guests to bring dishes to the party, that basically means they’re not only helping out with the food budget, they’re also taking the time to shop for the ingredients and deliver it to your house ready to eat! I would suggest setting some guidelines for your guests so that there is a variety of food in your spread and not just 5 versions of chips and salsa….and that’s it. To divide up the dishes, you could try a few different methods:

  • Assign your guests by categories. If there’s an easy way to divide up your guests, like by their last name, or their birthday month, then you could assign one set of guests appetizers, and another set of guests foods for the grill, for example. For this option, I would suggest asking your guests to confirm their choice with you and even post it on a message board if you are using a website to plan your party, so that you know and your other guests what’s coming and to avoid too much of one type of food.
  • Ask guests to bring specific foods. If your best friend makes the most amazing potato salad, and you need potato salad, ask your best friend to bring potato salad. There’s no need to do all the work when you can tap into the strengths of your guests. For those who are known to shy away from cooking, ask them to bring something simple like a salad or lemonade.

2) Set a food budget….and stick to it!

This tip comes directly from my previous post on Healthy Food on a Budget because it’s also important to serve your guests healthy food and stick to your budget. Just because it’s a party doesn’t mean you should let your health and your money slip up! It’s easy to set up budgets in Mint, like saving for a vacation, but you can also set up smaller budgets like for a summer BBQ celebration. Ideally, since you’re having everyone over for a potluck, this get-together won’t take a huge toll on your wallet, but it’s still important to set limits for what you can spend. I like to make it a fun challenge to see how much money I can save and get the most bang for my buck, while not cutting corners on the quality of food served for my guests.

3) Check out the weekly sales ads.

Don’t throw away those ads because right before Fourth of July, the mail will be filled with sales on foods for entertaining. Gather those ads up to look through what’s on sale for the week and map out your menu from those hot buys. If you have apps for your favorite stores, check those out too because I’ve seen in-app coupons that weren’t in the print ads that have saved me some money. Once you cross-reference the sales and build your shopping list, also plan out where you will shop from. If you have to travel from 2 different stores to save $15 dollars, I think it’s worth it to take the time to shop smart. Sure, it may take an extra 15 minutes, but I can bet that you’ll feel a lot better to have that extra money in your wallet.

4) Pick a dish that saves you money and time.

As the host of the party, you’ll be pretty busy with all the details of the day so your time on the day of the party will be limited. From cleaning up the house to setting up the grill, there’s plenty to do before guests show up. The last thing you want to do is prep a labor-intensive dish when there is so much more on that to-do list. To save money and time, I like to serve up a dessert dish that brings a wow-factor to the party, my Banana Boat S’mores. These delicious treats light up the eyes of all my guests, and if they knew how cost-effective they are, they’d light up even more!

To save money, I like to use fruit for dessert, especially in the summer season, because they’re more affordable, easier to prepare, and most importantly, they’re healthier! Bananas are only 19 cents each, so just make sure to have at least one banana per guest. I also know that marshmallows and Graham crackers are always on sale for $1 around this time of year, so already, this is a dish that costs less than 50 cents per serving.

To save time, I like this dish because you can have your guest prep their own Banana Boat. All you have to do is set up a station of the ingredients and let them make their creation as they please. When you get your guests involved in the food preparation, you’re saving some valuable time on your end, but also your guests are having fun! They’ll leave your party with another recipe under their belt as well, so it’s a win-win for everyone.

5) Buy your food in bulk bins.

Don’t pass up those bulk bins on your shopping trip, because buying from these can be 30-40% cheaper than packaged branded items. For the chocolate, I paid per ounce from the bin instead of buying packages. Since I’m setting up a station for my guests at my own home, I don’t need the packaging or extra chocolate so why should I pay extra for it? Half a pound only costs $2, whereas if I were to buy a bag or a bar it would cost me close to $5.

With these tips on how to have a cost-conscious Fourth of July spread, I hope you can spread out your budget and use some of that money you save on other fun activities this summer!

The post How To Create A Budget Friendly Spread For Fourth Of July appeared first on MintLife Blog.

Source: mint.intuit.com

5 Reasons You Need To Hire A Financial Consultant

If you’re a busy individual and have no time for the day-to-day management of your money, you may need to consult a financial consultant.

Beyond being busy, however, there are major turning points in your life where working with a financial consultant is absolutely necessary.

For instance, if you’re approaching retirement, you’ll have to figure out how much money you need to live during your non-working years.

So what is a financial consultant? And what do financial consultants do? In this article, we’ll run you through situations where financial consulting makes sense.

We’ll show you where you can get a financial consultant that is ethical and who will act in your best interest, etc.

Of note, hiring a financial consultant is not cheap. A fee-only financial advisor can charge you anywhere from $75 to $300 per hour. If your situation is simple, you may not need to hire one.

However, hiring a financial consultant in the situations discussed below is worth the cost.

Related: 5 Mistakes People Make When Hiring A Financial Advisor

What is a financial consultant?

A financial consultant is another name for financial advisor. They can advise you on a variety of money subjects.

They can help you make informed decisions about managing your investments and help you navigate complex money situations.

Moreover, a financial consultant can help you come up with financial goals such as saving for retirement, property investing and help you achieve those goals.

To get you started, here’s how to choose a financial advisor.

5 Reasons You Need To Hire A Financial Consultant:

1. You have a lot of credit card debt.

Having a lot of credit card debt not only can cause you severe emotional distress, it can also negatively impact your ability to get a loan (personal loan or home loan).

For instance, if you see 50 percent of your income is going towards paying your credit card debt, then you need professional help to manage debt. Your best option is to find a financial consultant.

Luckily, the SmartAsset’s matching tool is free and it helps you find a financial consultant in your area in just under 5 minutes. Get started now.

2. You are on the verge of bankruptcy.

If you have way too much debt and can’t seem to pay it off within a reasonable time, another option for you is to file for bankruptcy.

Although bankruptcy will free you from most of your debts, avoid that option if you can.

One reason is because it can have a long, negative impact on your credit file. Once you go bankrupt, the bankruptcy will be on your credit report for a long time.

Working with a financial consultant can help you come up with different strategies. They may advise you to consider debt consolidation, which can significantly lower interest rates.


Speak with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and help you reach your goals. Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.


3. You’re ready to invest in the stock market.

If you’re thinking about investing in the stock market, then the need for a financial consultant is greater. Investing in the stock market has the potential of making you wealthy.

But with great returns come great risks. The stock market is volatile. The price of stock can be $55 today, and drops to $5 the next day.

So, investing in the stock market can be very intimidating. And if you’re a beginner investor and unsure about the process, it is wise to chat with a financial advisor to see if they can benefit you.

A financial consultant can help build an investment portfolio and help manage your investments.

4. You’re starting a family.

If you’re just got married seeking a financial consultant is very important. A financial advisor can help you figure out whether you should combine your finances, file taxes jointly or separately.

You also need to think about life insurance as well, in case of death of one spouse. And if you’re thinking of having kids, you need to think about saving for college to ensure the kids’ future.

Turning the job over to a financial consultant can save you a lot of money in the long wrong and is worth the cost.

Related: Do I Need A Financial Advisor?

5. You’re just irresponsible with money.

If you make emotionally based financial decisions all of the time, you’re buying things without planning for them, you may be irresponsible financially and therefore need professional advice.

If you’re spending money on expensive items when you could be planning and saving for retirement, then you may need a financial consultant.

You may find yourself having trouble saving money. Then it may make sense to speak with a financial advisor.

Speak with the Right Financial Advisor For You

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

 

The post 5 Reasons You Need To Hire A Financial Consultant appeared first on GrowthRapidly.

Source: growthrapidly.com