Nobody likes uncertainty, especially when it comes to your finances. Money problems are a challenge that many Americans end up facing at some point in their life, and once they start to have some problems, it is really hard to get back on track. With the unpredictability of today’s economy and with terms like “tariffs”, “unemployment”, and “inflation” being thrown around left and right, it is difficult to really know what is going on, and how to handle these uncertain times. Luckily, there are a few ways that anyone can become more secure in their finances, no matter how the economy is doing. Let’s dig into these strategies.
“Financial security is one of the biggest concerns that families have today. It’s a lot of work to get to the point of financial security, but once you get there, you will realize how much life changes when you reach freedom in your finances.”
Financial Security Starts With An Emergency Fund
An emergency fund is one of the simplest yet most effective ways to have peace with your finances. It is simply a savings account with 2 to 3 months worth of income, set aside and only taken from in the event of an emergency. An emergency fund will cover you in the event of:
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You lose your job and have no income coming in
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Your dishwasher, refrigerator, and dryer all break within a week
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You have to miss lots of work to take care of a child or parent
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Any other large expense that is not covered by any insurance
Getting the ball rolling on your emergency fund is actually much simpler than it sounds. Every paycheck, do your best to set anywhere between 20%-50% of your income aside, and don’t touch it. Leave it into a savings account that has no penalty when you need to withdraw, and will earn you a tiny bit of interest. By doing this, you can rest assured that even if something big were to happen, your finances are not an immediate worry.
Get Life Insurance Coverage To Be Financially Secure
No one wants to think about it, but if something were to happen and you and/your spouse would pass away, the expenses you leave behind for your surviving family are most likely more than your emergency savings would be able to cover. That’s why life insurance is such a vital safety net for families. If something tragic were to happen, the last thing you should have to worry about is covering expenses. Life insurance gives you peace of mind that your family will be able to cover:
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Funeral costs
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Any debts you may have
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Household income for a longer period of time
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Leaving an inheritance for your children
Find Financial Freedom By Reducing Your Debt
Even though debt is often a way to buy the important things you need even if you don’t have enough money right away, it becomes a serious financial liability that must be closely managed. Debt, whether from credit cards or loans, is the easiest way to get into financial trouble. Debt requires constant vigilance to make sure that it doesn’t turn into a risk for your financial security.
If you need to go into debt to cover an emergency purchase, or already have a lot of debt from years ago, it is important to pay off as much as you can and reduce your financial liabilities. The quickest way to pay off debt is to:
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Stop spending on any unnecessary expenses
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Pay off the minimum amount on all debts
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Choose the debt with either the smallest balance (for immediate results and motivation) or the largest interest rate (for lowest overall interest costs), and use any leftover money to pay it off until its gone
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Once the first debt is gone, take the amount that you would use on that minimum payment, and put that plus any extra funds towards the next smallest or lowest interest debt until that one is paid off
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Repeat until all debts have been paid, and you are free to do more with your money
Enhance Skills For Employment
During times of economic uncertainty, labor is one of the most common ways that businesses cut their expenses. Sometimes layoffs or furloughs need to happen to make business sense, but you don’t want to be the one that happens too. If you are let go, then you’ll want to do everything that you can to make yourself more hirable and get back on your feet. Here two ways you can enhance your employment skills to get a new job or to keep your existing one:
Build A Professional Network
We all know the saying, “It’s what you know, it’s who you know”. Whether you agree with it or not, a network is a critical resource that you can use to your advantage. Getting to know people within your company or your industry can help you out when they are looking for someone with your skills, or you know that you can help them with a problem they have.
Learn New Skills
Gain an advantage over applicants or co-workers by taking an online course in valuable skills like AI literacy, leadership, or even data analysis. Even just having that once certificate under your belt can set you apart from others, and could be the thing that gets you hired.
Build A Monthly Budget To Maintain Financial Security
By having a monthly budget, you can know where every last dollar is spent, and protect against unnecessary spending. It allows you to prioritize expenses and saving, while also allowing you to plan for fun like vacations or new gadgets. There are many different ways to budget, but the most important thing to remember is to be consistent with your budgeting, and to not compromise.
Strickler Insurance Can Help Your Family Find Financial Security
The pros at Strickler Insurance know that financial security is super important for your family, and we are here to help you. Whether you are looking for life insurance to protect from a tragedy, or are looking for car or home insurance options that fit within your monthly budget, our team will work with you to find the perfect policies for wherever life has you now. Contact us today to get started with insurance that will help you work towards a secure financial future.
