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3 Financial Necessities for Every Home

3 Financial Necessities for Every Home

There are three things EVERYONE should complete when getting their financial house in order. These include the following:

1. A Budget

2. An Updated Will

3. Life Insurance

A Budget is just a plan for how to spend your money. Do you spend a lot of time wondering where your money went? Looking around for money to pay the electric bill or gas bill? Chances are you do not have a budget.The best thing about a budget is how it lowers your stress!!! If you create a budget and stick to it, you have peace of mind because you know how you are going to pay your expenses and all of the bills before they arrive. If you come across something you want to buy, you already know if you have enough in your budget to afford the item and all of the other bills coming that month. If you can?t afford it right now, you can easily see how long it will take to save enough money for the purchase. Budgets take a while to put together, but once you have it your life will be changed for the better forever!!!

A Will is more important than most people think. Many people without a will assume that when they die, their stuff will go to their spouse and then to their children. In the words of my good friend, Bob Ramsdell, ?If you don?t have a will, the state [wherever you live when you pass on] has one for you; you just may not like it.? He tells a story about a man who died without a will. Instead of his possessions going to his wife, they were split up between his wife and kids, and suddenly the surviving spouse did not have enough assets to afford her living expenses. Although your situation might be clear to you now, an updated will makes sure those you leave behind are properly cared for. Do not leave it up to the government to disperse your assets. Also, don?t forget to update your will as major life events unfold. I?m sure someone somewhere has died and inadvertently left all their assets to the ex-spouse instead of the current spouse! Get a will and keep it up to date.Check out Bob Ramsdell being interviewed on Fox News about wills and estate plans. http://fox4kc.com/2012/08/14/estate-planning-funda... you have ten times your annual income in net assets not including your house, you need

Life Insurance to provide for your spouse and/or children should you die. The best type of life insurance I recommend is Term Life Insurance. This means you pay a small amount per year for a determined number of years. If you die within the time period the full amount you are insured is paid to your estate. If you do not die by the end of the term, nothing happens. The other types of life insurance (whole, universal, variable, etc) require you to pay a large amount per year and when you pass away, assuming you have continued to make all the payments, your estate gets paid. The common selling point for these types of life insurance is that your estate will eventually get paid whereas most term insurance policies expire without paying out. The unspoken truth is that if you invest the difference in price between the two policies you could become extremely wealthy. You didn't think these life insurance companies got so big by paying out more money than they brought in, did you? The best strategy for life insurance in my opinion is to purchase term life insurance and concurrently set a goal that you will have accumulated savings and assets worth the total amount of your insurance coverage by the time the term expires. As an example, if you have a 20-year term life insurance policy for $500,000 your goal is to have $500,000 in savings and investments before the 20-year term policy expires.Although it?s not fun planning or talking about dying, scientists have discovered it happens to everyone sooner or later. If you have a budget in place, a will or estate plan and life insurance, you can continue to provide and care for your loved ones after you are gone. After all, ?no one gets out of this [life] alive? - Winston Churchill

Brad Reed

Trade on logic, not on hope

Brad ReedBrad@RealLifeTrading.com

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