Archive for the ‘Financial Management’ Category
For Singles, financial planning is a very important issue. Now is the time to review what you have and what you may need. Please use this checklist as a guide to your financial planning needs:
- Budget – I know, that word hurts me too. It is only a matter of knowing where your money is going and how much. Remember, pay your bills and obligations first. After that pay yourself and place it in savings. What’s left over can be spread to your living requirements. It’s o.k. to splurge (small items) once in awhile especially if you are on a tight budget. Should your budget be more extravagant, be careful and take heed to the economy.
- Health Insurance – You still need medical insurance for those unforeseen accidents and annual wellness visits. Employers now have multiple plans to choose from. For expense sake, you may opt for a high deductible and then pay for small expenses. Consult with your Human Resource professional. There are many options for small business owners and students.
- Health Care Power of Attorney – You need to designate a special person to make medical decisions on your behalf should you become incapacitated. Consult a legal professional for more information.
- COBRA – If you decide to switch jobs the COBRA coverage under your current employer is mandated to continue your health coverage for up to 18 months after you leave. Of course, you will have to pay any payments and fees associated with the continuance. Check your employee benefits package or Human Resource professional for more information.
- Life Insurance – Even though you are Single and life insurance doesn’t seem like a need, don’t forget about funeral expenses. Your family will appreciate the help in their time of grief.
For Singles with children, it goes without saying that life insurance is imperative. It could be used for their education or medical needs.
- Home Insurance – Always keep up your home insurance premiums along with flood insurance (if applicable) which usually is an addition to the basic insurance package. Also, Home buyers Protection is very valuable to cover items such as: plumbing, heating, electrical, kitchen appliance, etc. It has personally saved me hundreds of dollars.
- Wills – If you have anything of value that you treasure them it is necessary to have a will especially if you have children. Decide who will get your most coveted belongings.
- Disability Insurance – Long-term and short-term disability is very important for Singles. This type of insurance will pay for a percentage of your income should you be out of work because of sickness or accident.
- Retirement – It is important to start saving as soon as possible. If you have a 401(k) with your employer then they may match your contribution. That is a great bonus. Should your employer not have a 401(k), and then seek more information on an IRA. Remember, it is a bad idea to withdraw your savings when leaving a job. Look into rolling it over into your next employers 401(k) or into an IRA.
- Long-term Care Insurance – Older Singles may want to explore the benefits of long-term care insurance. The insurance covers nursing home and home health care expenses.
*Always consult with an expert for your financial management needs and concerns.