Skip to main content

Get With the Times

I find it interesting (and so do many, many people with whom I discuss this subject) that our financial lives are backward. Allow me to explain.

When we are twenty- and thirty-something adults, perhaps in college, perhaps with young families, it seems that money is a little hard to come by. Things are tight, and those who haven’t been taught the best way to handle their money might owe more than they own. When our children are grown and we approach retirement age (providing we have saved and invested wisely in the interim years), money seems to be a bit more available and our needs fewer.

That being said, the latter scenario requires less financial protection than the former. What do I mean by “financial protection”? One word: INSURANCE.

As our lives evolve, we get older, our physical, mental, spiritual, and emotional needs change. Doesn’t it stand to reason that our insurance needs change, too? Last week I encouraged you to evaluate your net worth and mentioned final arrangements. (Remember I said you weren’t going to want to discuss it? You didn’t, did you? And I’ll bet you still don’t want to.) As your life changes, your insurance needs change, too. And I’m not just talking about life insurance. ALL your insurance needs can change over time.

Case in point–the value of homes has gone absolutely C.R.A.Z.Y. in the last year. If you haven't upped your insurance, I would almost guarantee that your home is underinsured. 

My auto and renters (and eventually homeowners again–I’m in transition) agent checks in with me annually to see how I am. He really cares. Really, he does. He just wants to make sure I have the right amounts of the right kind of insurance. I like it. It’s kind of like having a super-protective boyfriend. Everybody should have one.

Comments

Post a Comment

Popular posts from this blog

Books Equal Bucks

 In November PBS always hosts their  Annual Reading Marathon . “Wow. That’s the  second  time this month that our financial blogger has gone off the rails regarding blog topics. What does reading have to do with finances?” My answer? Everything. Establishing good reading habits in children–reading 20 minutes a day–can literally change their financial future. Good readers do better in school. Good readers are more likely to graduate from high school. Good readers will probably make more money as adults. Reading changes EVERYTHING          . That being said, books  can  be expensive, but they don’t have to be. Libraries are some of the best resources for book access–they play SUCH an important role in our community. You can also share/trade books with your neighbors, friends, and family members (just make sure you have a good system for tracking book ownership). Second-hand stores or garage sales are awesome places to s...
Post a Comment
Read more

Bon Voyage

Many of you are aware that I like to travel. I’ve had the pleasure of visiting a few foreign countries and taking a handful of cruises, and I intend to do more in the not-to-distant future. Because you know me, you know I don’t finance these trips–I plan ahead and save for them. And if you’ve followed my blog for a while, you are also aware that I do use one credit card for which I earn flight miles, and I use this card on the trips where I see the world. There is one thing about my credit card for which I am especially grateful–whenever there is suspicious activity on my account, I get a text notification. The credit card company recognizes that charges abroad MIGHT NOT BE LEGIT, and they send me a message. All I have to do is confirm that it is, in fact, me that made the peculiar purchase, and I’m good to go. If I did not make the purchase, I respond in kind, and my card is deactivated. Note to self and others: one could avoid these potential interruptions if one calls credit car...
Post a Comment
Read more

The Marshmallow Experiment

In 1972, Stanford did a study about delayed gratification with children. It involved giant marshmallows and testing their patience.  You can see a short YouTube video about the study here . Basically, the kids who could sit alone with a giant marshmallow without eating it for a certain length of time were rewarded with a second giant marshmallow. Fun, huh? Some kids could be patient and reap the rewards; some could not. I was a small child when the study was conducted, and I wonder which side I might have been on. I HAVE learned to be pretty patient as an adult. One of the areas in which I’ve seen improvement is in finances. I have become a good money manager–I could be paid once annually and budget so that I won’t run out before year’s end, including having enough money to pay my own quarterly taxes–self-employed people do that. Speaking of taxes, I try not to overpay so that I qualify for a “refund,” because the government does not practice The Marshmallow Experiment. Huh? ...
Post a Comment
Read more