Mia Taylor at The Simple Dollar reached out to me a few weeks ago for her piece on Financial Preparedness. The Checklist she details is a solid one, and I was happy to offer my small contribution.
You can read her article HERE.
Is there anything else you’d add to it? Anything you have an issue with?
I’d love to hear your comments. Thanks.
- BGT
I do like the general trend of the recommendations.
Term life insurance is a great idea for families with single income breadwinners with dependents.
Going one step further, one thing I find exceedingly useful is — always carrying cash.
Cards can slow down certain things that are supposed to be fast and seamless. Picking up the check and taking her for a walk is facilitated by currency. (wink, nod)
Thank you, Johannes. Much appreciated. – BGT
I love this kind of discussion, but I will say I can’t help but always take a critical stance when it comes to financial management.
1) Always pat at least the interest amount on your credit each month. This way it becomes simple interest not compound interest against you. More than the minimum doesn’t cut it.
2) I would multiply the 50,000 dollar life insurance figure by 10 as a solid start. I would also make it permanent with as little cash value as possible. This way if you live long then it becomes s bond portfolio for heirs and if you die early it becomes the next bit coin you got in early on.
3) Save every month IF your investments are not doing the saving for you.
4) You will definitely need a diversity of different investments to combat inflation and earn a decent return.
5) 3 months cash reserves is nice, but don’t stop there. Make your goal 18 months. Add 1 month each year to your stack. Whatever comes out must be put back in.
My two cents. Hopefully they give birth to much more multi-generational wealth.
Thanks, Dario. Solid advice. – BGT