Eliminate Debt - Create Wealth - Financial Planning for Beginners
Posted at 10:36 PM
Financial Planning for Beginners - Tim Gorman
Financial planning at an early age may seem complicated, however it can be easier than you might think. At the age of 25 most of us are just beginning our married life, and there are homes and automobiles to buy and children to plan for. This leaves little time to plan for the future. These are some simple steps that you can take to ensure that you and your family will be able to handle unexpected emergencies and expenses.
* Buy Insurance
Insurance is one of the easiest ways that you can be sure that your family is protected financially in the event of an accident. Medical bills alone from one accident can cause a family to be in a state of financial distress for years. Although medical and automobile insurance rates are high, the return is much greater. Life insurance is also a very key factor in planning for your financial stability. In the event that a family member dies, you could be in debt for as much as $50,000 for funeral expenses. Insurance may seem like a useless expense when a family is deciding on a budget, however, the budget will be completely diminished in the event of an accident without insurance. Remember, the key word in the phrase "financial planning" is planning.
* Repay High Interest Loans
Some debt that is incurred has a higher interest rate than others depending on the type of loan and the time at which the money was borrowed. Many times car loans and student loans have the highest interest rates, while other debts like medical bills may have little or no interest accumulating. Although it might seem like a good idea to pay off bills that have a lower total balance to eliminate that payment, this is not always the best option. In the long run it is more beneficial to pay off the debts that have the highest interest rates first.
* Create an Emergency Money Account
Try and work out a plan so that your family will have a little extra money in case of emergencies. Even putting a minimal amount of money back from each paycheck makes a lot of difference. The key is to be consistent, decide on an amount a stick with it. Another option is to save unexpected income, such as gifts or tax returns, for emergencies. It is estimated that one should save at least 15% of their annual earnings in a savings plan; this amount will vary according to your particular situation.
Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, credit counseling, repair and free financial planning information that you can research in your pajamas on his website.
A note from Tammy - Eliminate Debt AND Create Personal Wealth
to make sure you are getting the best life insurance coverage, I recommend eFinancial. They stand behind the bottom line figures they offer you for your desired level of coverage. Do your family a favor and check out what they offer you.
I agree with with Tim Gorman's financial planning tips for beginners with one exception. I have used the debt cruncher software that comes with Leo Quinn's Take Back Your Paycheck Again and there are times when it is to your financial advantage to indeed payoff smaller balances first while making minimum payments. With each debt eliminated, you can pinpoint where to put the extra money you have to invest in your debt elimination program. These finer points can make a BIG difference in planning for your own financial success. :-)
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Financial planning at an early age may seem complicated, however it can be easier than you might think. At the age of 25 most of us are just beginning our married life, and there are homes and automobiles to buy and children to plan for. This leaves little time to plan for the future. These are some simple steps that you can take to ensure that you and your family will be able to handle unexpected emergencies and expenses.
* Buy Insurance
Insurance is one of the easiest ways that you can be sure that your family is protected financially in the event of an accident. Medical bills alone from one accident can cause a family to be in a state of financial distress for years. Although medical and automobile insurance rates are high, the return is much greater. Life insurance is also a very key factor in planning for your financial stability. In the event that a family member dies, you could be in debt for as much as $50,000 for funeral expenses. Insurance may seem like a useless expense when a family is deciding on a budget, however, the budget will be completely diminished in the event of an accident without insurance. Remember, the key word in the phrase "financial planning" is planning.
* Repay High Interest Loans
Some debt that is incurred has a higher interest rate than others depending on the type of loan and the time at which the money was borrowed. Many times car loans and student loans have the highest interest rates, while other debts like medical bills may have little or no interest accumulating. Although it might seem like a good idea to pay off bills that have a lower total balance to eliminate that payment, this is not always the best option. In the long run it is more beneficial to pay off the debts that have the highest interest rates first.
* Create an Emergency Money Account
Try and work out a plan so that your family will have a little extra money in case of emergencies. Even putting a minimal amount of money back from each paycheck makes a lot of difference. The key is to be consistent, decide on an amount a stick with it. Another option is to save unexpected income, such as gifts or tax returns, for emergencies. It is estimated that one should save at least 15% of their annual earnings in a savings plan; this amount will vary according to your particular situation.
Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, credit counseling, repair and free financial planning information that you can research in your pajamas on his website.
A note from Tammy - Eliminate Debt AND Create Personal Wealth
to make sure you are getting the best life insurance coverage, I recommend eFinancial. They stand behind the bottom line figures they offer you for your desired level of coverage. Do your family a favor and check out what they offer you.
I agree with with Tim Gorman's financial planning tips for beginners with one exception. I have used the debt cruncher software that comes with Leo Quinn's Take Back Your Paycheck Again and there are times when it is to your financial advantage to indeed payoff smaller balances first while making minimum payments. With each debt eliminated, you can pinpoint where to put the extra money you have to invest in your debt elimination program. These finer points can make a BIG difference in planning for your own financial success. :-)
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