3 Things You Cannot Live Without!
In January of this year everyone was excited to see a new decade. It represented a fresh start or new beginning. But, who knew we would be dealing with a pandemic and for this long? Life gives us plenty of curveballs, but here are 3 things that will help you be prepared for those unexpected events.
Emergency Fund
6 months ago we had an emergency. It was called COVID-19, but what happens when that emergency turns into our new normal? Typically when I advise people about how much money you need for emergencies I say 3-6 months of your living expenses once you are out of debt. Of course now I’m leaning much more towards 6 months since we’ve been in this current emergency for that long. Many people have been out of work for 6 months and are wishing they had that money saved. If you have used your emergency fund to weather this storm you need to be thinking; “How will we refund our emergency fund?” Your emergency fund is something you cannot live without because on top of COVID-19 what if there is another emergency? The American savings rate has gone up to about 33% during this pandemic. Learning how to do your own personal care, cooking at home, and no outside entertainment have forced us to keep more funds in our pockets. Thankfully! Take a moment to think about what quarantine habits you need to continue doing to protect your emergency fund or simply start one. 2020 has shown us how important this vital financial element is.
Healthcare
Now more than ever healthcare insurance is a must. The cost of a major medical event can bankrupt anyone without proper coverage. This is not an area of your budget that should be cut. Your health is a top priority. This includes preventative care because it is better to catch any potential issues ahead of time. This way you save money and keep yourself going! Keep an eye out for a newsletter in October all about open enrollment and the benefits you need to pay attention to this year.
Life Insurance
If you have someone depending on your income like your children or spouse, life insurance is a must. Being able to provide for your loved ones during their time of loss will not only lighten the burden, but also give you peace of mind. Today it is common for funerals to cost $10,000 to $15,000. That number is crippling if you don’t have insurance to pay for it. And term life insurance is very inexpensive. You need about 10X your income in coverage for as long as anyone is dependent on your income. I always recommend you check out www.zanderins.com to see what kind of policy you can get without any hassle factor or pressure to buy.
As you are preparing your monthly budget and assessing the needs of your household be sure to include all of the above items in your planning. You will reduce stress and be more in control when you have strategies that keep you safe. If you need help determining how to do this let’s talk. I’m happy to help!
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