You’ve probably heard a lot of tips for your personal finances. You probably know to budget. You may even know that you should start saving for retirement right now. But there are probably a few things that you don’t know, or that you just forgot to include in your budget. Have you done your research on insurance policies, say auto insurance in Nashville, or wherever you live? You may be saving for retirement, but do you have plans for a rainy day or emergency fund? Do you have a budget for giving back to your community?
These are three things you may be missing from your budget. And you might be wondering to yourself why it matters if you haven’t thought of them. Simply put, earmarking money for charities, having an emergency fund, and making sure you’re properly insured could put you one step closer to financial stability.
Money for Charities
Giving to charity may sound like a silly way for you to reach financial stability, but it is an important part of financial bliss. You don’t have to give a lot of money, but you should make a goal to give some. A few reasons to do this are that you’ll be helping your community, you could change someone’s life, and donating to charity could give you a tax break.
One of your financial goals probably is to be a legitimate and successful member of society. This means settling your debts, paying taxes, and bettering your community through contributions to charities.
A Rainy Day Fund
You know you have to save for retirement. That fact has been drilled into your head by media, high school finance teachers, and your parents. But has anyone reminded you that it’s important to plan for those emergency situations as well?
You may not be able to perfectly plan for everything, but one thing you can always plan on is the unexpected. It may seem like a misnomer, but it’s true. Unexpected things happen. Money you weren’t planning on spending disappears. A loved one died, so you have to get a plane ticket. A friend gets engaged, and their wedding is in a month and you’re a part of the wedding party. Or a million other things happen that cause you to sneak a little from your retirement fund, or just put a few hundred dollars on your credit card.
Stop letting the unexpected ruin your financial goals. Start planning for the unexpected by having a rainy day fund.
Another way to prepare yourself for the unexpected is to make sure you’re insured. This means you have car, home, life, health, liability, and any other applicable insurance. By making sure you’re properly insured, you’re preparing yourself for the what-ifs of life.
A key to being properly insured is to do the necessary research. Insurances differ by location. This means you may need to do some research on auto insurance in Nashville, Charleston, Houston, or wherever you live. You may need to get hurricane insurance on your house, or if you live in the Midwest you may not have to.
Do the research, get the proper insurance, and ensure that your budget stays on track.
A Well-Rounded Budget
Having a thought out budget leads to financial freedom. You have a retirement plan set up, you pay for all of your bills, and now you just need to add the finishing touches. Make sure to cover all of your bases to start living a more financially stable life.