Life insurance can get expensive. That’s why it’s always important to budget for it.
The Importance of Budgeting
A budget can seem lame, boring, and time-consuming. However, budgeting is one of the most important skills you can ever learn. Learning to have a strong financial future is the best way to succeed.
What is a budget?
A budget estimates the expected income and expenditures throughout a set period. A budget often provides the best means for planning your financial future. These budgets can be short-term. But they can also be for your monthly expenses or even yearly expenses. Budgets help you make smart choices and understand finances and how they work.
What does a budget look like?
A budget can be anything from a note on your smartphone to a well-prepared spreadsheet. Here’s an example: Total Income: $2,400
- Rent: $1,000
- Utilities (Electric, water, trash, internet) $250
- Phone: $100
- Food: $250
- Subscriptions $100
- Shopping: $50
- Health Insurance: $200
- Transportation $100
- Savings: $350
When you make a budget, you want to break these into categories. You’ll want to have exact bill costs for those things you can and rough estimates for those you can’t.
Should I save money?
YES! Saving money each month is paramount to your future financial well-being. We know that budgets can get tight. But do you need that Chinese food every other night? Do you need to go out with your friends and party every weekend? Saving money is important for a few reasons.
Emergency Funds
Emergency funds are for emergencies only. Not a vacation, Not to pay off a credit card, and certainly not so you can go out with your friends. An emergency fund is specifically for Emergencies. Unexpected hospital visits, Emergency car problems. These are all acceptable reasons to break that piggy bank and dip into that emergency fund. You should have 3-6 months of your salary saved in an emergency fund before considering going on vacations or buying anything luxurious.
Retirement
Saving for retirement is an important task. There are tons of ways to save. Roth IRAs and 401(K)’s 403B’s, and many others. If you don’t save for retirement, how can you expect to retire?
Life Insurance Questions?
We hope that this information on life insurance was useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
Get affordable life insurance quotes by clicking here.
See our other websites:
The article was updated on 6/10/2024.