Monday, July 14th, 2008
Don’t really have anything to add today but I did manage to go get a term life insurance policy taken out to make sure my family will be able to manage should something happen to me.
It’s a $500/k policy effective immediately. I have to take some test and such but it’s pretty much official. What’s weird was hearing his take on whole life and term life insurance. If you’re a Dave Ramsey cult follower, you know that whole life insurance is the devil. My insurance man likes to think it’s an investment avenue. But I like to hear both sides of the coin so I asked him about it and it still didn’t sound too good while he was explaining the difference between the 2.
I’m just relieved because my severance with Sprint runs out in a little more than a month and my policy I held with them will run out then too. But now I feel much better with my entire situation. It (along with my new Honda insurance) raised my premium $120/month. I walked out feeling like I’ve just got my ass handed to me by a car salesman but I looked at it as an investment, sorta.
My insurance man did have some great advice about death and situations and stuff. . I know you’re heard that it’s best to have a will. That’s something that I really need to get off of my ass about. I’ve always thought that a will is the be-all end-all to beneficiary paperwork. He stated that a TRUST would probably be the best way to go because it tells when/how money is to be dispersed. For instance, you can leave money to your kids only after they’ve completed a bachelors degree or a certain age or whatever.
I think I might get creative with my $ to include that they either have to be maintain a certain liquid net worth, hold at least an associates degree (college isn’t for everybody), and or be a certain age. I think 25 is a responsible age unless the beneficiaries are taught and have practiced financial responsibility at a young age.
Well there’s my take and hopefully it helps someone.
Note: i wasn’t able to install the w4g system on the Yukon this weekend. Hopefully I can get it done this week as I’m dieing to try it out.
Posted in Informational, education, purchases | 1 Comment »
Monday, April 21st, 2008
I can’t sit here and take credit for my (relatively) recent financial makeover. In 2006, I received a tidbit of recommendation from the most unlikely of sources to check out the Dave Ramsey program… MY SISTER.
After listening to the (then) most financially irresponsible person I knew at the time sell me on the Total Money Makeover (TMM) audio book, I’ve become a cult Dave Ramsey follower. I’ve always been good with money by mainly listening to my mother and grandfather talk about how to budget and constantly instilling that credit cards are the devil. I’ve held true to those values but without a plan.
Despite the teachings of my parent’s and grandfather, I was never taught how to become debt free until I ran into TMM. From start to finish, I found myself being captivated and inspired by following 7 small common sense steps to get my financial future on the right path.
To be quite honest the journey is half the reward. It’s amazing how things become SO possible once you create a plan and set goals. For instance, I once laughed at my cousins idea that he should be able to pay off his house within five years. I was brought up believing my fathers teaching that we’re always going to have bills. I’m here to tell you inf act… IT’S ENTIRELY POSSIBLE!
I’ve since apologized to my cousin for making a mockery of his suggestion. I’m nowhere closet o paying off our mortgage but I’m not going to sit here and say that it’s impossible. If I really dedicated myself to doing that, it could easily be accomplished within 5 years or so.
Here’s the basics of Dave’s Financially Fit plan (7 baby steps):
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$1,000 to start an Emergency Fund |
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Pay off all debt using the Debt Snowball |
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3 to 6 months of expenses in savings |
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Invest 15% of household income into Roth IRAs and pre-tax retirement |
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College funding for children |
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Pay off home early |
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Build wealth and give!
Invest in mutual funds and real estate |
Because of baby step #3, despite my time of currently being laid off, I’ve been completely stress free because of Dave’s plan to achieve financial responsibility.
Having said everything but, “I want to have the man’s child”, I highly suggest you read it also so we can really get an understanding as to what we’re trying to accomplish and how we’re going to go about doing it.
Posted in Informational, Inspirational, Personal debt, education, goals | No Comments »
