This is one of those questions that will elicit a wide range of answers. One expert will suggest that three months’ worth of expenses tucked away in an emergency fund will suffice. Another expert will scoff and say you need at least a year’s worth. So, really, how much should you have in your emergency fund?
I’ve read differing opinions about keeping a cushion in one’s bank account. Some people say they are very efficient budgeters and never need a buffer in their account. Others keep a month’s worth of expenses (or more!) in their checking account. I fall somewhere in the middle.
I believe everyone should keep a small buffer in their checking account. But why? And how much?
Mr. STS and I went through the life insurance-buying process a few months ago. Surprisingly, it was a much easier task than we thought it would be.
If you are not convinced that your family needs life insurance, be sure to read this post: 5 Reasons Why You Should Buy Life Insurance.
Okay, here we go! 5 Steps to Buying Life Insurance:
1. Visit Term4Sale.com
I have no financial relationship with Term4Sale. I am recommending it based on personal experience. The site is easy to navigate and gives you quotes to compare in minutes.
Type of insurance
How many years do you want this policy to cover? Or until what age? If you have other investments that you expect will one day cover all of your expenses, then you may want the insurance policy to lapse when that happens. Maybe you won’t need the policy after your house is paid off and children graduate college. Take a look at your personal situation and make an educated decision.
Amount of insurance
Do you want the policy to be able to pay off your house and send your kids to college? Do you need it to ensure your family can maintain the same type of lifestyle they have now? Do you still have student loans or other debts? Like choosing the length of your policy, the amount of insurance will vary from me to you.
Minimum company rating
We were comfortable with any company having an A- rating or better.
2. Choose a policy.
After you fill in the boxes and hit Compare Now, it takes you to a page filled with policy options from different companies. The premiums vary a bit depending on the company, but they all cover the same length and amount of your policy. You can choose the least expensive option and click More Info.
3. Choose an agent.
You can either call an agent listed on this page, or fill out the contact form and an agent will give you a call. The agent may send you a questionnaire to fill out. He may tell you about the experiences he has had with the insurance companies and give his recommendation. For example, Company A may not be as responsive as Company B, and Company C may be more strict with the health exam.
4. Health exam.
Once you have decided on a company, you will be set up with an appointment for a quick health exam. Our appointment took less than 15 minutes. A nurse will come out to your home and ask a few health-related questions and take blood and urine samples.
5. Insurance company decision
Over the next few weeks, the insurance company may require more information from you. They may want to communicate with your primary care physician. Once they cross their t’s and dot their i’s, they will either approve or deny your application for coverage. You may be approved for the exact type and amount of coverage, at the initial premium that you wanted. Or, based on your health information, the insurance company may approve you at a different rate.
Not too bad, huh? Life insurance premiums are very affordable. I think everyone family should have some sort of coverage in place. You may already have a policy through your employer. Make sure you understand its terms and decide whether it is enough for your family. If not, you can always purchase an additional policy at an inexpensive rate.
This might seem like an odd question. You can never have too much in savings, right?
It’s inevitable. Spending money is something we all MUST do each month. Even those dedicated folks participating in things like No Spend January (or whatever month) still can’t get away from spending on necessities – gas, groceries, utilities, etc. So if you have no choice but to spend this money, why not get cash back for it? It’s like getting a discount on (almost) everything you buy! Keep reading for how I earn cash back!
I came across this question a few weeks ago on one of the many discussion boards I frequent on the web. “How many times do you pay your credit card each month?” My first thought was: “Once. Why would anyone give themselves more bills to pay in the same month?” I pay my balances in full on their due date each month and forget about it until the next month. After I got off my high horse, I remembered that I have, in fact, made multiple payments towards my credit cards in the same month in the past. And for good reason, too! Maybe you should be doing the same!