Allstate published this article in February 2016 and I wanted to share their thoughts and opinions. We can help you with your individual situation. Please give us a call @ 412-489-66443
If developing a financial plan feels like an overwhelming task, you’re not alone. Many people put off dealing with their personal finances simply because they have no idea where to start: Should I max out my retirement plan or spring for life insurance? Save for a home or open a #529 account for my child’s education?
To make the planning process simpler, it may help to break down financial tasks into easily achievable steps. Consider the following:
Budget and Save-Managing your current income and monthly living expenses is a cornerstone of your financial life. “To-do” tasks here may include:
Creating an emergency fund- An emergency fund may help you avoid racking up debt if the unexpected happens — for example, if you end up in the emergency room or your car transmission blows out. Some experts recommend saving three to six months’ worth of living expenses.
Saving for short-term goals- Beyond budgeting for monthly bills, you might want to plan for larger expenditures in the near future. Depending on your situation, your short-term financial goal might be saving for a down payment on a house, getting married or planning for a family. Saving for these events now may help you avoid breaking the bank when the big day comes!
Protect What’s Most Important- As you get established in your job and personal life, you might begin to think about protecting your loved ones, and the things you own, from the unexpected.
Your family. If you have a spouse, children or other family members who depend on your income, you may want to consider life insurance. If you pass away, it’s intended to help provide money that could be used to replace income. A life insurance agent can help you compare term or permanent policies so you can decide which makes sense for your family.
Your health. It can be hard to think about, but how would you pay for care if you developed a medical condition that made it difficult to care for yourself? Long-term care insurance is one option to consider. It may help pay for health care services or personal care services in your home, or in an adult day care, assisted living, nursing home or rehabilitation facility.