Top o’ the Mornin’ to Ya!
Let’s talk about the dynamic duo of financial peace – your emergency fund and insurance coverage. Your emergency fund is like a self-insurance plan for life’s little hiccups, while insurance is there to protect you from the big, bad wolves that could blow your house down.
First off, make sure you’ve got your emergency fund squared away. Aim for a starter fund of $1,000, then work up to saving 3-6 months of expenses. This is your buffer against job loss, unexpected repairs, or a busted phone.
Now, let’s dive into the 7 types of insurance everyone needs:
1. Auto insurance – Get enough coverage to handle your own car and any damage you might cause to others. Raise your deductible to lower your premiums.
2. Homeowners/renters insurance – Homeowners need enough to fully replace their house. Renters, your landlord’s insurance doesn’t cover your stuff, so get a cheap renters policy.
3. Health insurance – An absolute must. Consider Christian healthcare sharing ministries (link below) for a potentially cheaper option.
4. Disability insurance – Protects your income if you can’t work. Aim for a policy that covers at least 65% of your pay until retirement age.
5. Identity Theft insurance – For just $12/month, you can have pros clean up the mess if your identity is stolen. A no-brainer!
6. Term life insurance – If anyone relies on your income, get a term policy for 10-12x your salary. Your spouse needs coverage too, even if they’re a stay-at-home parent.
7. Long-term care insurance – Once you hit 60, get a policy to cover assisted living or nursing care. It’s pricey, but worth it.
Skip the gimmicky stuff like accidental death, cancer, or burial insurance. These are usually a waste of money. Stick with the core 7 and you’ll be sitting pretty!
Remember, insurance works hand-in-hand with your emergency fund to protect your finances and give you peace of mind. It’s not fun to think about, but you’ll be so glad you’re covered if something goes sideways.
Take a few minutes this week to review your policies and make sure you’re fully protected. Your future self will thank you!
You be blessed!
https://brian.chat
Affiliate link:
Christian Healthcare Ministries: https://christianhealthcareministries.referralrock.com/l/1KENNETHSEI08/
Insurance & Emergency Fund For Financial Peace
