Being financially stable goes beyond having a budget and avoiding impulse buys. It is more about building a financial foundation that you can depend on no matter what life throws your way. Be on your way to financial security and add these 10 essentials under your name today.
- Health insurance
Basic healthcare is expensive. It becomes ridiculously so when you need serious medical attention. Now that you are still young and healthy, invest in good health insurance to manage your medical costs and secure your future.
- Homeowners insurance
Some people who fail to insure their homes end up on the streets in case of a fire or other emergency. A homeowners insurance policy is relatively inexpensive for the coverage it provides. This will help you rebuild your house in the event of total loss or serious damages.
- High-yield savings account
Compare your current savings account with offers from other banks. Check out online banks, too. They offer some of the best rates.
- Checking account
A free checking account is a good centralized place for your money. A debit card also helps, especially if you use it for the right purchases.
- College savings account
If you have children, you should have planned for college costs yesterday. Two common ways to get tax benefits for your kid’s college fund are 529 college savings plans and Coverdell Education Savings Accounts. These will help you cover the educational expenses of your children. An investment fund is another option.
- Emergency savings
This is your own form of personal insurance. Save enough to pay at least three to six months worth of your expenses so you do not go into debt in case of emergencies.
- Retirement fund
Social Security is great but you do not want to depend on it alone. Save a retirement fund so you have another source of income during your retirement years. Your first stop should be a 401(k) plan, especially if your employer provides a match of any kind. A tax-sheltered individual retirement account is also useful. Save today so you can take care of your tomorrow!