5 Effective Tips To Set Lifetime Financial Goals From An Expert
Your financial goals are the specific monetary amounts that you intend to attain in order to accomplish your life vision. Financial objectives, like any other goal, should be connected with your long-term plans, whether these plans involve paying for children's education, sustaining a specific retirement lifestyle, or paying off and keeping out of debt. A financial advisor can tell you that good financial objectives are specific, measurable, attainable, relevant, and time-bound. For a variety of reasons, generic goals may be unlikely to motivate you to attain them. Here are 5 effective tips to set financial goals:
Set a budget
Making and sticking to a reasonable budget is a desirable financial goal in and of itself. Without a budget, you will struggle to fulfill your objectives. Budgeting abilities are essential for money management and financial planning. Your financial goals are part of your total financial plan, and your budget allows you to analyze and alter your plan as needed to meet your objectives. Your budget will also provide you with a sense of control over your financial situation, as well as the confidence to persist in the face of financial hardship. Another benefit of a budget that is sometimes missed is its utility as a communication tool. As an example, you and your spouse disagree on your spending habits. The ability to give verifiable proof of the family's spending patterns may help you make the case for cutting less on certain activities and putting them towards savings.
Make a realistic plan
Your financial goals are unique and specific to you. It is common to find that some goals are easier to achieve than others. To create a realistic plan identify financial goals that align with your ideal life. Categorize your goals into a time period of short-term, mid-term, and long-term. Setting time frames for your goals will make it easier to strategize to achieve them.
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Short-term
Short-term goals usually range from 3 years or less and are usually created for items you wish to afford in the near future. A few examples are a home renovation or a vacation. Short-term goals can also be set for items that can contribute to the mid-term and long-term aspirations.
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Mid-term
Mid-term goals range from 3 to 10 years and may include boosting your credit score, or getting funds to start your own business. You might want to look into passive income options or engage a financial advisor to assist you to plan your retirement. Each of these examples of mid-term financials acts as a stepping stone to a greater goal, a long-term objective.
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Long-term
Long-term goals, such as guaranteeing financial stability in retirement or paying off your home, are further down the road, ranging more than 10 years. Long-term financial goals may comprise numerous short-term or mid-term objectives. Breaking down enormous goals into smaller, more urgent ones is always a smart idea and makes them more manageable objectives.
Turn it into a habit
One of the best ways to reach your financial goals is to change your mindset. You have to be willing to stick to a plan that extends a lifetime. However, building new habits can be difficult and can be more daunting to think about having to maintain them for the rest of your life. It is always best to start small and work your way up when trying to create a new habit for yourself. You can begin with a short-term goal which can be two weeks of keeping a budget. Once you achieve that you can extend the timeline to 30 days, half a year, and then to the point that it is integrated into your routine. Building habits is easier said than done, and if you are struggling you can turn your budget into a challenge or a game. When you complete a task you can reward yourself. As an example, you could implement an envelope system where you place cash in envelopes for specific expenses and have one envelope for your personal savings and spending. No matter what challenge or game you set for yourself, you tailor that habit into your lifestyle and what you want to save for.
Always evaluate and reassess your plans
Similar to your personal situations, your plans should evolve and change with you. When financial goals and plans are set for a certain period, routinely assess them. Check to see if you are on track or if it needs refinement, and make an adjustment so you can set yourself up for success. Having a way to keep track of your progress is important to visualize where you are succeeding or falling short. This could mean creating a spreadsheet, using a journal, downloading an app, or meeting with a financial advisor. Seeing your progress visually can be a significant motivator and makes planning that much easier.
Use available tools and resources
You have tools for practically every sort of financial objective at your fingertips, from direct deposits to savings accounts and autopay alternatives for credit cards to budgeting programs that link to your accounts and update in real-time. Some are free, while others need a registration, they also have varying perks and features. You must evaluate these resources depending on your objectives to see whether the benefit exceeds the expense or, more crucially, the time required to set them up and learn how to utilize them. These software tools, like any other tool, cannot accomplish everything for you. To ensure that everything works as it should, you will need to routinely monitor your transactions and accounts, as well as be mindful of app settings and notifications. One of the best resources to implement to reach your financial goals is consulting a financial advisor. They can greatly assist you if your finances have grown more complicated or you may want personalized advice to help increase savings or pay down debt. Whichever the case may be, a financial advisor is a resource worth considering.
It can be quite difficult to achieve perfect, linear progress toward any of your goals, but the key thing is to stay consistent. If you have an unexpected auto repair or medical expenditure for one month and are unable to contribute to your emergency fund but must withdraw funds from it, do not be too hard on yourself, that is the main purpose of an emergency fund. Simply get back on track as quickly as possible. you can evaluate and adjust your goals, as well as track your progress toward them as life's ups and downs occur. Throughout the process, you will discover that both the minor things you do on a daily and monthly basis, as well as the larger things you do each year and over time, can help you reach your financial objectives.
How Can I Save Money to Keep Up With Inflation?
With the effects of rising inflation, many sectors in a number of industries have seen prices rise. A financial advisor can help you navigate through such times by investing in what matters and guide you in preparing for the future. However, as a consumer you may be feeling the effects of inflation with the rise on everyday products like groceries, gas, and transportation. Here are a few areas where you can save to keep up with inflation.
Save on utility bills
Electricity bills are an area you could potentially save by cutting down. Electricity bills may be noticeably higher in the summertime with the use of A/C units. You could consider shutting off your A/C and turning on a fan in its place. Typically an A/C unit requires a lot of power to operate but in the case when temperatures are not extreme, turning them off and using fans instead can keep your space comfortable and save you money. Another contributor to your electricity bill is your washer and dryer. There are no substitutions to needing to clean clothes but there are ways to make the process less costly. One way is to always follow the specified time-of-use pricing for washer and dryers to avoid the premium for cleaning at those times. However, you can skip the drier entirely, if you have a large enough backyard you can set up a clothesline to dry your clothes with the hot summer air. Lighting is another area of a home or property that can quickly become expensive. Lights that remain on after you fall asleep or if you forget to turn them off end up wasting your money. The use of both smart lights and energy efficiency bulbs that use less wattage can all contribute to energy saving costs. Having timers and schedules setup can help with extra savings, which may not seem like a lot but all add up.
Cut costs at the grocery store
Grocery costs have seen a significant increase in cost. All food categories have experienced the effects of inflation, with certain foods being hit harder. Higher cost food include meats, fruits and vegetables, pasta and rice. With the current state of inflation it does not appear that food prices will stop rising. Some tips to save money on groceries include:
Select cost-effective foods
Meat prices are among the highest attributed to inflation, so eating more vegetarian meals is one method to save money on groceries. Meals may be built around low-cost essentials like pasta, rice, dry or canned beans, potatoes, and eggs. Canned and frozen fruits and vegetables are less expensive than fresh, and substituting generic items for name-brand products may also help you save money without seeing a significant difference.
Meal plan
Make a weekly food plan to minimize impulsive purchases or depending on takeout during the week. To save even more money, look for recipes that incorporate ingredients you already have in your cupboard and fridge, or plan meals using the weekly sales flier from your grocery store. Stick to your shopping list as much as possible, and go to the supermarket with a full stomach to avoid tempting impulsive purchases that might derail your food budget.
Take advantage of deals and discounts
The weekly flier of your grocery store is filled with deals and discounts that can be easily taken advantage of. For items that have a longer shelf life like canned food, they can be bought in larger quantities when they are on sale. For perishables only purchase the essentials that coincide both your budget and meal plan.
Save money on transportation
Another rising expense is the cost of transportation as gas prices have spiked in cost. If rising gas prices are blowing your budget, your first step may be to minimize your driving as much as possible. If your job permits it, request to work from home more frequently. Running errands in batches, carpooling, or using green transportation choices like public transportation, bicycling, or walking anywhere within a short distance will all help you save money. By taking advantage of fuel savings programs at your local gas station, you may be able to save money at the pump. Many gas station companies, for example, offer incentives for joining up for text messaging. A petrol rewards credit card may also allow you to earn points or cash back on gasoline purchases. Finally, think about decreasing the cost of your auto insurance. Based on variables like your driving history, you may be eligible for a cheaper vehicle insurance quote than you are currently paying. Compare vehicle insurance quotes, and select one with the appropriate benefits with lower costs.
Plan ahead for cheaper vacations
Inflation, rising costs of fuel and the increase in demand because of lower post-pandemic restrictions have all contributed to the higher airfare cost. Along with more expensive airfare, there have also been noticeable increases in dining, hotels, and gasoline prices as well. All contributing to a more pricey vacation compared to recent years. If you have the choice, it may make sense to postpone major vacations. A staycation, in which you remain close to home and visit local sights, take day trips, dine at local restaurants, and relax at home, can save you a lot of money today, making it simpler to enjoy your ideal vacation without incurring debt later on. If you want to travel this year, prepare ahead of time for a trip you can afford. Book your tickets early, ideally at least six months in advance, and compare travel prices using internet savings tools. Since costs fluctuate based on the day of the week, having flexible travel dates will help you find the cheapest tickets. You may also save money by using a travel rewards credit card, which gives you a portion of your purchases back in the form of points or miles. Redeeming your accumulated points or miles for flight and hotel reservations may save you a lot of money on travel, as long as you avoid incurring interest charges that cancel out your benefits. Inflation raises the cost of essential housing, electricity, food, and transportation. If your budget is under pressure, devise a plan to decrease expenditures wherever possible. Credit management can be made more difficult by economic hardship, this can be where a financial advisor may be most beneficial. They can help navigate through the current economic climate while also planning for the future.
5 Types of Life Insurance in Canada Explained
Life insurance is a key aspect of many Canadians' overall financial strategy. It can assist your specified beneficiary, such as your family, with replacing your income and carrying out their plans in your absence, such as going to university or retiring. However, there are different types of life insurance policies specified for different needs. Since there is no general life insurance policy that can encompass all needs and requirements. Each type of life insurance policy should be considered carefully as they are accompanied by different varying advantages.
Term life insurance
Term life insurance is a form of life insurance coverage that protects you for a certain period of time, known as a term, and gives your dependents a tax-free lump sum payout if you pass away within the term. Some common term length options for life insurance include 10 or 20 years, with some lengths of 25, 30 years and up to 65 years of age may be available. Some Canadian life insurance providers can even enable you to choose your own term of coverage. You may be able to select a certain number of years for the term life insurance coverage to last. These are known as "pick-a-term" products.
There are advantages to protecting yourself for a set amount of time. Your life insurance death benefit can meet the majority of your short-term life insurance demands. This might involve financial circumstances like your mortgage, any outstanding debt you may have, school coverage for your children, or living expenditures for your loved ones so they can keep the same level of life if you pass away. Convertible term life insurance is also available in some term policies. Convertible term life insurance allows you to convert your existing term life insurance policy into lifelong or permanent life insurance before reaching a certain age.
Whole life insurance
In Canada, whole life insurance is one of the most popular forms of life insurance. It covers you for the rest of your life as long as you pay your premiums on time. As a result, whole life insurance is often known as permanent life insurance coverage. A whole life policy, in addition to offering a fixed payout whether you die young or elderly, contains an investing component. A percentage of your premium payments is placed into a savings component known as "cash value."
The cash value of your insurance rises with interest over time and serves as a financial safety net in times of uncertainty. You can pay your premium using the policy's cash worth, borrow against it, or remove it partially or completely. This can be done to help you get through a hard financial period. You can even surrender the insurance later in life to live off the proceeds.
Universal life insurance
Universal life insurance is comparable to whole life insurance, with the exception that it includes a self-directed long-term investing component. Your insurer provides you with alternatives for investing the cash value of your insurance, which may be used to save for retirement. If you are a knowledgeable investor or are concerned about estate planning, universal life insurance may be a more intriguing alternative. However, universal life insurance policies need more hands-on work than other types of life insurance coverage and may not provide the same rate of return as other investment alternatives.
Mortgage life insurance
Mortgage insurance guarantees that your mortgage lender collects the remaining balance of your loan if you were to pass away. In other words, the payment is made to the mortgage lender rather than your family.
The payout amount corresponds to your outstanding debt. The result is, that it decreases over time as you pay down your mortgage. The insurance rates, however, stay constant during the policy period. Since mortgage insurance is rigid in terms of who receives the death benefit, a term life policy with adequate coverage to pay your mortgage may be a better deal. If the mortgage is reduced, your beneficiaries will get some cash even after the mortgage is paid off. They can also utilize the payoff in any way they see appropriate rather than paying the mortgage in full.
Mortgage life insurance has certain advantages with the most noteworthy benefit being that it does not need a medical examination. If you have a severe medical condition that makes life insurance impossible, your only possible option is to get mortgage life insurance to safeguard your home financially.
Group life insurance
Group life insurance is one of the most common forms of life insurance that insurance companies provide to their employees as part of their employee benefits package. Group life insurance, just like other insurance policies, offers advantages and cons.
Convenience and acceptability, are some of the major advantages of group life insurance. Registration in group life insurance can sometimes be automatic or require paperwork to be completed. Additionally, group life insurance may not need a medical exam, which is especially advantageous for employees who are older or have serious health conditions.
As beneficial as group life insurance is, depending completely on it may not be advisable because it cannot be taken with you if you change employment. Some insurers allow policyholders to change their group life insurance into individual life insurance if they quit. A group life insurance policy tends to be a one-size-fits-all option. In result, it cannot be tailored to your specific requirements.
With varying types of life insurance, there is not a one-type-fits-all kind of policy, it all depends on your unique needs and situation. In the event that you have any doubt in terms of which life insurance is right for you, it is advisable to contact a knowledgeable advisor. With their expertise, they can assist you in figuring out which type of life insurance is the best fit for your needs.
Why work with a financial advisor?
Life is about enjoying every last moment, and reaching your financial objectives allows you to do exactly that on your own terms. A devoted financial assistant can help you get closer to the ideal lifestyle that you want for yourself. And, because our finances affect practically every part of our lives, a financial advisor may have a beneficial influence not just on your personal financial well-being, but also on the financial well-being of your family members, future generations, and even our society. Having said that, hiring a financial counselor is really beneficial. Here are some of the numerous advantages of working with a financial advisor.
Help with Preparing for the Unexpected
You can't anticipate the future, but you definitely can plan and prepare for it. To stay on course, your financial advisor may work with you to create a plan ahead of time by considering predictions for issues such as inflation, long-term care, market drops, and health care. For example, most people who deal with a financial advisor stated it offered them more financial security during the COVID-19 pandemic. Whatever the situation may be, with a financial advisor by your side, the chances of you being caught off guard and unprepared financially will be kept to a minimum.
Guidance in States of Distress
Keeping emotions out of your investment decisions might be tough during times where the market is unsteady and unpredictable. Stock market headlines may make even the most experienced investors uneasy, with all of its unexpected twists and turns. That's why working with a financial adviser who can help you establish a specific investment plan based on your goals, risk tolerance, and time horizon is what's best for you. These people will make you considerably less likely to respond to severe market situations by making rash and spontaneous decisions.
Promotion of Financial and Physical Wellness
Financial planning is only one aspect of long-term preparation. Building a solid financial plan also includes you and your family's health and emotional well-being, since facing financial uncertainty may be stressful. Financial experts are prepared to assist you in managing your financial, emotional, and physical well-being. That's why when you decide to work with a financial advisor, it's critical to choose a finance specialist that is a good fit for you and has the necessary expertise and capabilities. With that being said , before you begin working with a financial advisor, it is advisable to ask them some questions about what they do.
Help with Creating Financial Plans for you
A bewildering number of goods and investing methods are available in the financial sector. A financial manager can help you reduce the confusion by identifying reliable and diverse investment products, developing a customised financial strategy that works for your goals and risk tolerance, providing the support and insight you need to feel secure, alerted, and in command of your future, and communicating with you to keep you on track with your life. Furthermore, by collaborating with tax professionals and insurance specialists, a financial advisor may enable you to take your financial goals to the next degree. Your team of partners can work together to develop a complete strategy for attaining your objectives.
Reassurance with Calculated Decisions
The ups and downs of the stock market might lead to impulsive financial decisions. A financial counsellor, on the other hand, can help you stay on track and, if required, modify your plans. Rather than just reacting to short-term market changes, they will do so based on data and the advice of professional market strategists. By doing this, the chances of you falling off track of reaching your goals is little to none. These people will focus on making decisions that will reassure you that you will reach your long-term goals, which is why you need them in your life.
Puts your Money to Work
Financial planners assist clients in increasing their assets in areas where their money will generate them more money. People who work with an advisor put more of their money into non-cash investments, which means that more of their money is working for them. People who have a financial advisor save far more for their future and profit from the better growth potential of their non-cash possessions. This demonstrates the value of working with an adviser.
Hiring a financial advisor is beneficial and can make your life less stressful. Not only do these people create financial plans that cater to your life and are based on true data, they also help prepare you for the unexpected and guide you through times of stress. Furthermore, advisors also value your emotional and physical well-being because they believe that those aspects play a big role in your financial situations. On top of all of that, these people help you put your money to work, which means that they help you invest in non-cash investments that bring in revenue. These are just the many benefits that financial advisors provide so work with one today.
What is the Ontario staycation tax credit?
With the Ontario Staycation Tax Credit, the Ontario government is encouraging residents to rediscover the province and support the province’s crucial tourist economy for the 2022 calendar year. When completing your personal income tax and benefit return for 2022, Ontario individuals can claim 20% of their qualified lodging costs. This may include a stay at a hotel, cottage, or campsite. Individually, you can claim up to $1000 in qualifying costs, or $2000 if you have a spouse, common-law partner, or eligible children, for a total refund of up to $200 for an individual or $400 for a family.
Who is eligible?
You are eligible for this credit if you are an Ontario resident on December 31, 2022. Only one person per household is eligible for the credit each year. The qualifying costs of your spouse or common-law partner, as well as your eligible children, can be included in your claim. If you don’t have a spouse, common-law partner, or eligible child, you can still claim the credit for your own qualified expenses.
Eligible Expenses
The Ontario Staycation Tax Credit encompasses accommodation expenses for leisure stays of less than a month in Ontario. The tax credit is only valid for stays between January 1, 2022, and December 31, 2022, regardless of the timing of payment for the stays. The accommodation expense must have been paid for by you, your spouse, or common-law partner, or your eligible child.
Accommodations include hotels, motels, resorts, lodges, cottages, bed-and-breakfast establishments, campgrounds, and vacation rental properties. To validate these expenses during tax season, keep your detailed receipt to claim the credit. The receipt must include:
- Location of the accommodation
- The dollar amount for the accommodation portion of a stay
- The amount of any/ paid GST, HST
- The date of the stay
- Name of the payor
Ineligible expenses
The Ontario Staycation Tax Credit does not include a timeshare agreement, a stay on a boat, train, or other vehicles that can be self-propelled. The tax credit cannot be claimed for:
- Expenses for car rentals, fuel, flights, groceries, parking, or prices of admission into local attractions and places of interest.
- Accommodation expenses reimbursed to you
- Expenses that are incurred for school or educational purposes, or for work, employment or business purpose, or that can be claimed for a medical expense tax credit.
The scope of the Ontario Staycation Tax credit is to make travel more accessible and invite Ontarians to explore the province. The tax credit will help individuals and families save on local trips while also reviving local tourist industries. The goal is to keep Ontario competitive in the global market. The Ontario Staycation Tax Credit is estimated to provide $270 million in support as part of the 2021 Ontario Economic Outlook and Fiscal Review: Build Ontario. The tax credit is also expected to provide support to about 1.85 million Ontario families. If you’re looking to use this benefit for your next getaway be sure to check if you are eligible and what expenses qualify to begin planning your local trip today.
How Can A Financial Plan Help You Achieve Your Goals?
When it comes to personal finances, there are two different popular approaches people take. There are those individuals who have planned out their financial future, usually with the help of a financial advisor, and those who do not have a plan. For those individuals that do not have a plan, they usually have a vague sense that things will work out for them as long as they are able to save some money each month for retirement.
Unfortunately, without a financial plan, reaching your financial objectives might be far more difficult than expected because you don't know which target to work on next. Here’s how a financial plan can help you achieve your future financial goals.
A financial plan can help you establish a schedule for achieving your objectives
It assists you in focusing your money and time management on achieving your financial objectives so that you may accomplish the things you want to do in life. Your budget is a crucial aspect of your financial strategy.
You can plan how and when you want to spend your money according to your budget. It makes it easy to come up with new ways to pay down debt, save money and ensure your money is working for you. Your budget is the instrument you use to get there, while your financial plan is the path you take.
You must have specific goals in mind when developing a financial plan
The more precise the objectives, the better. If you want to retire early, for example, you'll need to decide what age you want to retire at and how much money you will need to save to get there. This aspect of your plan can be better outlined with the assistance of a financial advisor. They can assist you in determining the particular figures you will need to meet your retirement objectives. They can also determine how much you should invest each month and make recommendations for the kind of investments you should make to achieve your objectives.
A financial plan can also assist you in preparing for major life events
Saving for a downpayment on a home is not an easy task, it takes preparation and time. To best understand the type of home you are able to afford, you must first understand your finances. Similarly, saving money for your children's post secondary education is not as simple as just putting money aside or even worse dealing with it when they graduate high school, time and preparation is required. A financial plan can assist you in taking the necessary steps to care for your family and be ready for any major financial decisions that come your way.
Getting started with an effective financial plan is as simple as reaching out to one of our seasoned financial advisors. Give AWealth Financial Services a call today at (416) 666-7264, we will be happy to answer any questions.
5 Ways To Boost Your Retirement Plan
After years of labor, you definitely deserve the best rest in your retired years. However, like most things in life, you need to be prepared with a foolproof retirement plan. When you are retired, there is no paycheck date to plan your life around and you need to be as prepared as possible to cater for your needs and desires. Get the best out of your retirement plan and boost comfort for the rest of your life with these tips, and remember – the earlier you start, the better!
Set your financial goals
Every target requires setting goals and so does your retirement plan. Without a determined goal, you have no vision of what you want and can do little to nothing to ensure that you get there. Determine how much you will need for the retirement you desire and work towards obtaining that amount to enhance your retirement plan. It helps to also set financial goals to be achieved at milestones during your career.
Hire a financial advisor
If you want a stress-free retirement, you most certainly need a financial advisor. An experienced financial advisor is your go-to professional for management of finances, planning, investments, financial insights, and other money-related matters. By taking into consideration your financial retirement goals, a competent financial advisor will help you navigate and boost your finances in readiness for retirement.
Don’t spend it all
When you reach your set goal per week, month or even year, any extra money that comes in should not just be wasted. Be intentional about it. Channel that money into your overall savings. Think about it this way, the more you deposit your extra money, the faster you reach your retirement goal. And even better – the more provisions you have for your retirement.
Wait out your social security benefits
Waiting out social security benefits can be pretty tough but it has its long term perks. Every year you wait out your benefit, you increase the benefit you receive in the future, and this will definitely be beneficial for your retirement plan. Waiting after age 62 brings an increase in the value of your benefit so, if possible, wait till you’re 70 before you collect your benefits.
Take advantage of your 401(k)
401(k) is an extremely favorable retirement strategy which has two main types – traditional IRA and Roth IRA. With traditional IRA, you get to save for your retirement without paying taxes to Uncle Sam as it is removed before tax deductions. In Roth IRA, your payments are removed after tax but grows tax-free and withdrawals here are also tax-free.
With a great plan and the best financial advisor, you can enjoy the retirement of your dreams. Define your retirement plan today and enjoy the rewards of your labor tomorrow!
5 Reasons To Invest In Life Insurance
There are a ton of uncertainties that may occur from our daily lives. Unexpected occurrences are more likely to leave our loved ones in need of financial support. We daresay, that even before these situations occur, there’s a way to help out, by investing in life insurance! Depending on your age and family status,purchasing life insurance might seem like an unnecessary move, but you never know what is waiting for you around the corner. If you are looking for benefits to guide your investment decision on life insurance? We’ve got you covered. Here are five reasons investing in life insurance may be a good decision for you:
Caters to family needs
We all want the best life for our loved ones, and if you’re the primary income earner with dependents, you’ll always want to see them thrive. But what happens if the unexpected occurs? You can still support your loved ones with the sum total you have invested in your life insurance. This can help your loved ones cover funeral expenses, pay off the mortgage on your home or even cover your children’s full college tuition.
Provides generational safety
If you start your life insurance plan early, you might be able to provide financial protection for your next generation. This relieves the financial burden your kids or grandkids may face. With life insurance, you can easily leave an inheritance that offers them a spring board in life. As a result of your early life insurance investment, your grandkids can possess strong financial futures.
Peace of mind
Death may be inevitable, but with the right life insurance plan, it is always assuring to know that when you’re gone, your loved ones will be taken care of. A life insurance plan eliminates any mental stress or anxiety surrounding funeral expenses. Instead of worrying about what might happen if you die, you can invest in a life insurance plan that will help you prepare for any occurrence.
It is cost effective
Life Insurance is cost effective when you start early, which is why we advise you to start your life insurance plan now. If you do this when you’re younger and in better physical health, not only will the monthly rates be cheaper, the insurance coverage will also be higher. Existing health conditions might increase your plan costs, registering early helps avoid any potential health related fees.
Covers terminal diseases
Life Insurance covers terminal illnesses and provides financial security. Most types of life insurance plans come with perks or provisions. Some of these provisions come at an additional cost, but will cover instances such as injuries, terminal illnesses or accidents.
10 Financial Resolutions You Need to Make This Year
As the year is just getting started, many people are making their 2022 resolutions, what they would like to accomplish or change over the next twelve months. The most common resolutions revolve around health, careers and relationships, and not as often they revolve around financial decisions and goals. This can be seen as a costly mistake, as it is wise to plan and set goals, especially for your personal finances.
If you have yet to set your 2022 financial resolutions or maybe aren’t sure where to begin, we highlight 10 financial resolutions you need to make this year:
Learn from last year’s financial successes and failures
Last year, you probably made some good and bad financial decisions. Look through your financial records and the steps you took that affected your finances. Make sure you learn from your last year’s financial successes and failures.
Create a budget
One of the reasons people make bad financial decisions is that they don’t have a budget. So, creating a budget will help ensure that you don’t fall into this trap. Decide how much you want to spend on household expenses, transportation, childcare, loan repayment, body care, entertainment and so on and try to stick to it.
Save more
Basically, saving more this year is the cornerstone to financial freedom in 2022. You can do this by reducing unnecessary expenses, increasing your retirement contributions, boosting your income, and focusing on high-yield saving accounts. If you are not sure where to begin with saving or you have struggled with putting money away in the past, contact a financial advisor for assistance.
Automate your savings
If you have to decide how and when you should save money every time, chances are you may forget or forgo putting money away. Luckily, you can get rid of this issue by automating your savings. On a recurring schedule, you can have money debited from your daily account and moved to a savings account. This automation ensures money is put away and helps you to stick to your budget to cover your monthly expenses.
Improve your credit score
Do you know what your credit score is? Is your credit score lower than you would like? If yes, it is time you focused on boosting it. The higher your credit score, the higher your financial power. You can improve your credit score by repaying debts, paying bills before deadlines, and reducing spending.
Pay off your credit cards completely
The higher your credit card debt and the longer you continue paying the minimum fees, the more difficult your financial situation will be. Therefore, you should invest some time and money in paying off your credit card debt. This can make a significant difference in your finances. Credit card interest is painfully high.
Start an emergency fund
No one prays for emergency financial needs, but they happen every now and then. The emergency could come in the form of unanticipated car or home repairs or a layoff. Don’t just wish away emergency financial needs, start an emergency fund to take care of them. Your emergency fund sweet spot is being able to cover three to six months of your living expenses.
Invest more
Don’t just focus on saving and cutting your expenses, you need your money to grow and investing will help grow your finances. However, don’t rush into any investment; make sure you have a good understanding of it. Depending on your finances, a financial advisor or portfolio manager can help you to manage your investments.
Refinance your student loans and/or mortgage
Do you have a mortgage or student loan? You should think about refinancing them. With the interest rate reductions that we have experienced over the past 18 months, you should be able to save on your monthly interest charges.
Improve your financial literacy
If you know a lot about budgeting, money management, retirement, credit, debt, etc., it will be easier for you to make reasonable financial decisions. There are plenty of online resources that can help you to boost your financial literacy. Also, you can consult a financial advisor to learn more about how to manage your finances. Just make sure you are learning from a reputable source.
It’s time to set your financial goals for 2022 and make your financial resolutions. You can add additional resolutions to the above, or remove those that you don’t feel pertain to you. Make your resolutions based on your own needs and comfort levels.
Wishing you the financial best in 2022.
What Is the Best Age to Get Life Insurance?
The best age to purchase life insurance for yourself has been a subject of debate for quite some time. Most often the debates come down to paying a smaller premium amount for a longer time, versus paying a higher premium for a shorter time frame. The amount of your premium is affected by your age and your overall health. Knowing this, you think it may be possible to figure out the best age to get life insurance with a simple math equation to get the best price and maximum value or return on investment. However, everyone is different, and tomorrow is a relative unknown, so ultimately the best age to get life insurance is based on what you are comfortable with.
We already know that life insurance is highly influenced by age, so below we highlight the different age groups and some of the variables considered for life insurance policies.
1. Ages 20-39
This age range is among the best to get life insurance because the premium payable will be the lowest. If you go for a whole life insurance policy, your age range will give you the longest time possible to build cash value, as your life expectancy is the longest in this age group.
2. Ages 40-59
This age range is among the most popular age ranges that people believe that they should have life insurance. However, in this age bracket premiums have already begun to increase and some individuals may even give up on the idea of a life insurance policy for themselves as they do not believe they can fit the added expense into their budget. Even though premiums are higher in this age group, than the previous bracket, you should also consider that you have not been paying into the premiums previously, so the money that you have not been spending over the years, is being made up in a way now, with the slightly higher premiums.
3. Ages 60 and Above
At this age range, you can expect to pay the highest premiums if you are just now opting into a life insurance policy. This is because at 60+ the chances of life changing illness or even death are higher than any of the other age groups. Some insurance companies may even refuse to offer insurance to individuals in this age bracket, or may ask for frequent medical exams for continued eligibility.
Ultimately the best age for you to get life insurance is based on what you are comfortable with. However, signing up for life insurance at a younger age will provide the lowest premium rates and also provide coverage in case of an unexpected illness and accident. As you reach certain milestone events in your life such as getting married, purchasing a home or having children, the importance of life insurance increases as you want to ensure your loved ones are financially protected. It is never too late to get a life insurance policy to protect your family and loved ones, you may just need to take a few extra steps, including medical exams and pay a higher premium for your coverage.