The 3 Accounts You Might Be Missing Out On

Having all of life’s pieces together, set up, structured properly, knowing your login to everything, remembering when to pay bills, how to shop for a car … It can all be quite overwhelming. There are a few basics that get skipped over, but are vital to having a comprehensive financial portfolio. While simple is usually best, it can also be a bit risky, especially once your total balances exceed the insured limit, if all of your money is held in a simple bank or credit union account. However, for most, that’s precisely where we’ll start:

  1. Set up a checking and savings account. While you might already have at least one of these, having both is important. Having a safe place for your money to flow into is important, for paying bills, getting cash, and having a base for the rest of your accounts in which to pull from. Setting up a credit union savings account is easy and takes only a few minutes, and gives you a separate place from your usual spending money to save for an emergency, vacation or general nest egg. It’s advisable to have 3-12 months of your salary saved in a safe savings account, just in case of a job loss or the need to take a few months off to reconsider your life’s path. It’s immensely secure and stress reducing knowing you have a safety net that can provide you a continued sense of self, regularity and maintained lifestyle should you need it. Depositing money into your accounts is as easy as setting up direct deposit through your employer, or scanning checks on a mobile app, in many cases. Having savings and checking accounts are foundational for most. You can try browsing the internet for free checking accounts since there are banks that offer such perks.
  2. Credit cards. While this may be a very taboo subject and suggestion, depending on which blogs and financial gurus you follow, credit cards can be very beneficial to have when used advantageously. Sure, there are high interest rates on carried balances, but there are also a host of benefits that come with some cards, such as travel insurance, travel benefits, cash back, extended warranty protection on purchases like electronics, and so much more. Using credit cards also gives the benefit of fraud protection, in many cases. As long as the balance is paid in full each month, there’s really no downside when used in an intentional and structured manner.
  3. Insurance. From renters and home insurance to car insurance, life insurance to medical insurance, having insurance can be costly to pay for up front, but is something that is beneficial to have, just in case something goes awry. Shopping around for the best policies and premiums that work best for your budget and needs is well worth your time, as having the wrong coverage is unchangeable and irreversible once needed in a situation. While some types of insurance are required, like automobile insurance and homeowners insurance, others are optional but are extremely beneficial to have to protect yourself, your family, your home, vehicles and possessions on the rare occasion disaster strikes. Take some time to talk to insurance professionals and do your research when signing up for insurance, so you understand fully what you’re getting.

Setting up basic types of accounts to create a strong and stable foundation for your financial health takes a bit of time up front, and is good to have a routine of evaluating annually or more frequently, to ensure everything is still needed and on track for where you are in life, and where you want to go, but it’s always worth it. Financial health is as important as physical health, as both are important for our longevity and happiness in life.

How to save money when choosing a car insurance provider

Choosing car insurance that covers your needs is a necessary expense for any car owner, but as anyone who owns a vehicle knows, costs add up quick. The good news: premiums can vary greatly. Taking the time to understand your options is the best way to ensure you’re not overpaying for your auto insurance.

Here are a few tips for saving money when choosing car insurance:

Shop around

Prices vary by company, so shop around. Get multiple quotes. Ask friends and relatives for recommendations, and consult invaluable services like Clearsurance, which has crowdsourced ratings and reviews for hundreds of companies, such as Esurance reviews from consumers. Also, do a little research yourself. Remember, the lowest price upfront isn’t always the “cheapest;” it’ll cost you more in the end if the company fails to provide adequate service or denies your claim. 

Go for a higher deductible

By choosing a higher deductible on your insurance, you can significantly lower the cost of your premiums. Of course, it’s always important to make sure you have enough money to pay that higher deductible if you do end up having to make a claim! A higher deductible means a higher out-of-pocket cost in the event you have a claim.

Compare insurance costs before buying a car…if possible

 Auto insurance premiums are partly based on your car’s price, what repairs cost, its safety record, and its likelihood of being stolen. Some insurers offer discounts for features that reduce risks of theft or injury. When comparing vehicles to buy, also research what each will cost to get insured. Check safety rankings for specific models with the Insurance Institute for Highway Safety.

Bundle your insurance

Many insurers will give you a discount if you buy two or more types of insurance like homeowners and auto — or have more than one vehicle insured with them. And some even offer reduced prices to longtime customers. There are no guarantees, so be sure to do your homework. You can quickly see which businesses consumers rate as the best homeowners insurance companies on Clearsurance if you’re looking to bundle.

Decrease optional insurance for old cars

If you own an older car that is worth less than 10 times your insurance premium, buying collision/comprehensive coverage may not be worth it. To find out if this is the case, check the value of your car on websites like the National Automobile Dealers Association (NADA).

Maintain good credit

A positive credit history typically means lower insurance costs. In fact, many insurers use your credit info to price your auto insurance policy, since studies show that people with better credit make fewer claims! Check your credit record regularly to ensure its accuracy.

Low mileage discounts

Some car insurers offer discounts to drivers who cover less than the average number of miles per year. If you carpool to work, for example, work from home, have a short daily commute or only use your car on special occasions, this may apply to you.

Also, as a final thought. You want to work with a car insurance provider that has a good reputation in the industry.   For example if you get in a car accident and you get hurt, you’ll want to know if your insurance policy will cover personal injury.  Incidentally, if you do get hurt and you live in New England, think about a Worcester MA personal injury lawyer.  We like Schafer Law.  They’re a solid little firm in MA.  Give them a call, you won’t go wrong.

Learn more about the top car insurance companies by visiting today!