Updated on November 23, 2018 by admin
Managing your money flow is the second step of building your financial house. It is like building the frame that the rest of the home will be built around.
The concept of managing your money flow is basically making sure that your inflow of cash is less than your outflow of cash. This process is called budgeting. When you create and follow a budget, you are living within your current means and you will avoid accumulating new debt.
When you take the time to create and follow a budget, you begin to see where your money goes each month. Armed with that knowledge you can cut back on some of those wasteful spending habits and free up money to start moving towards your goals.
Managing Your Money Flow Will Help You Reach Your Financial Goals
When you follow a budget, you can allocate money to reaching your financial goals. Maybe you want to save for things like retirement or a down payment on a house. Perhaps you want to start saving money to start that business you’ve been dreaming of. When you follow a budget, you have a plan to get where you want to go. When you have a goal and plan to reach that goal, your chances of getting there are exponentially increased.
Managing Your Money Flow Will Prepare You for Future Wealth
If you are always running out of money with your current income, chances are that you will have the same problem even if you earn more. Statistically, the more money you earn, the more money you’ll spend. This is called Parkinson’s Law. If you do not learn to manage what you have now, earning more money will not solve the problem.
Don’t be fooled by appearances. Many of those high income earners are broke. All of their income is going to pay for their big mortgage, the credit card bills, and the car loans. They are just broke at a different level.
Managing Your Money Flow Will Teach You Discipline
Wealthy people understand the importance of managing their money. They exercise self-discipline and they save up for purchases and earn interest on their savings while they do it. Broke people tend to go for instant gratification and buy things on credit. Often, whatever they buy ends up costing them twice as much by the time they finish paying for the credit card bill.
In the long run, saving up for purchases will actually allow you to buy twice as much stuff compared to buying with credit.
Alternatively, you could have the same amount of stuff, plus build up a big investment account on the side with all the money you save by not paying interest on debt.
Managing Your Money Flow: Conclusion
Over the years of working in the financial industry I have actually met a lot of low income earners that had higher net worths than many doctors and lawyers. This is simply because they managed their money well and allocated a portion each …
Updated on November 23, 2018 by admin
What is Senior Life Insurance?
A senior life policy is usually a fairly small face value whole life insurance policy. By a small face value, I mean from a couple of thousand dollars to twenty or twenty-five thousand dollars. The policy is usually intended to help a family pay expenses that come up at the end of life. These examples could includeerals, debts, travel, and compensating family members for losing time at work. If any money is left over, the beneficiaries of the policy are entitled to keep it to use however they wish.
Advantages To Senior Life Insurance
There are some advantages to having a policy. Funerals are expensive. It can be very tough to come up with the cash to pay for one. Other expenses also tend to crop up when a loved one dies. The policy can be a source of cash to help pay for these things.
It can also be a way to leave cash to the beneficiaries. Any money that is not needed to pay for end of life expenses should go to the people who are named on the policy. In most cases, there are no taxes due on the proceeds from a life policy.
Is Senior Life a Low Cost Choice?
Because the face values are small, many policies are quite affordable for seniors or their families. However, we also need to decide if these policies are a good value. That will depend upon a lot of things.
Take the example of an eighty year old female. A typical premium for an $ 11,000 policy might be about $ 95 a month. In this example, the policy will be paid up at age 95. After her 95th birthday, the insured person will not need to pay more premiums in order to be covered.
Keep in mind that this is just an example, and it is not meant to illustrate any particular insurance policy. Rates will vary by age, health, location, and insurance company. In order to get accurate quotes for yourself, or for a loved one, you can find an online life insurance quote form.
In this example, if the insured person does survive until age 95 when the policy is paid up, the premiums would have adjusted to over $ 17,000. This is probably more than the $ 11,000 face value of the policy! It would be easy to say that, in this case, the family would have been better off by putting the money in a savings account.
Insurance is about risk though. If the insured person would pass away in the first few years of the policy, the premiums paid would be much lower than the face value. In this case, the family would pay less than the face value for the policy.
So it is hard to say for sure if a senior life insurance policy will be a good value or not. Nobody, can predict the future. We also spend a lot of money on car insurance …