Insurance

Get Your Finances Organized!

It is extremely important to have your finances organized.   In fact, I believe that lack of organization is one of the top reasons that people do not reach the peak of their financial potential.   I am excited about this post, especially because we have a FREE tool to help!

Some of you may hear the word organize and your heart flutters with excitement, while others are probably filled with dread just by the sound of the word.  Wherever you are on the spectrum, you can and NEED to get your finances organized.  For your own sake, and for the sake of those you love.

Person working on finances on computer

Step One Understand why you are doing this in the first place

Let’s face it – we are all extremely busy.   The last thing we need to do is initiate another paperwork process just for the sake of what “might” happen.   I believe, however, that this process is an extremely valuable step toward maximizing one’s financial potential.   If you take the time to complete the steps in this post, you will discover areas where your financial plan is lacking AND also where you are winning (which is very satisfying to see).

Here are some reasons to get organized financially:

  • Control:   It is hard for the finances to run out of control when you are focusing this intently on your financial affairs.
  • Improved financial focus:   We tend to improve that which we focus our attention on.
  • We WILL die some day:   Our family will appreciate a clearly organized set of financial affairs.

Organization and a great financial plan are two of the keys to the reason that Jenn and I have been able to experience financial freedom!

Step Two Prepare a list of all of your financial accounts

If you are a slightly, or very disorganized person (like I used to be!), this is probably going to be the most difficult part of the entire organizational process.   It is important to gather together your financial statements so you can easily prepare a one or two page document that details your entire financial picture.

Link to Financial Accounts Form to help organize your finances

To speed up the process, we are PUMPED to provide a FREE TOOL for you to consolidate all of your information in one place – our Financial Accounts Form.   You can download a copy from our Organizational Tools page on the IWB website.

Below is a sample of how the information can be written into the file.

 

Example of Financial Accounts Form for organizing finances

Step Three Information to include on your Financial Accounts Form

This form is meant to be the be-all to end-all location for your entire financial picture.   When you are looking for key financial information, you won’t have to go far because it is all contained within this file.   When you pass away, it allows your estate executor to easily understand what they are dealing with.

Here are the key items to include in your Financial Accounts Form.

  • Investment Accounts

 Include your 401(k), 403(b), 457, TSP, Roth IRA, IRA, stock, bond, and mutual fund investments.

  • Bank Accounts

Include checking, savings, money market, CDs, and any other accounts held at a bank or credit union.

  • Real Estate

    If you own real estate, be sure to list the addresses and the financial status of these holdings.

  • Will

According to Bankrate.com, 58% of Americans do not have a written will.   Have one, and include it’s location and your assigned executor on this document.

  • Power of Attorney

Healthcare POA, Limited POA, or other legal assignments of responsibility should be included in this document.

  • Insurance Policies

Include life insurance – be sure to include policies provided through your workplace.   Also include insurance on key possessions owned.


  • Jewelry (or other valuables)

If you have valuable possessions, be sure to list them and their locations.

  • Safe Deposit Box

If you have one, indicate it on this document and include its location!

I know.   I know.   This can seem overwhelming, but it is absolutely worth the effort to put this together!

Step Four Make sure you are budgeting

Having your accounts listed out and your financial affairs in order is so important.  What good does that do you though if you aren’t organized with the money that you spend?

Budgeting is another important step to making sure you are financially organized.  If you haven’t started budgeting yet I suggest you check out my post “How Do I Budget?”  It’s chalk full of tips on getting started along with free tools to make it easier for you.

Budgeting is part of being organized with the money that comes in and what goes out of your account each month.  Taking control of this sets you up for financial success.

Step Five Where to Find Free or Cheap Resources

  • Check your local hospital for free healthcare power of attorney forms.

For instance, our county hospital provides links to South Carolina’s free power of attorney form.  Check your local hospital system’s website to see if they have the same available.  They may also offer advanced directives.  An advanced directives form takes the pressure off of your loved ones to make care decisions for you if you aren’t able to communicate your desires yourself.

  • Some county library websites will also offer free legal forms, including those that are state specific.
  • Several free legal documents (including power of attorney and a basic will) are located HERE

If you have substantial assets (including sizable term life insurance policies), I highly recommend that you meet with an attorney to have them review your documents to make sure everything is well organized and accurate.  It may cost you up front, however it will give you peace of mind and save your loved ones in the long run.

Where else have you found great free (or cheap) legal documents?

Get Your Finances Organized!

Those Type A people reading this are probably chomping at the bit to get this done (if they haven’t already started).  However, I know this may not be everyone’s idea of fun.  Don’t delay though!

My hope is that as you’ve seen the benefits of having your finances organized it will keep you motivated to see it through.  Getting organized may seem like a daunting task, but you should feel better equipped for it now.

As you organize your accounts and records not only will it help your loved ones in the long run, but it will become easier for you to understand your current financial position.  This will help you as you make monthly decisions in your budget and set you up for success with your finances.

This may be a time consuming task your first go round, but after you have this set up it will be easy to update and maintain it going forward.

5 Ways to Save Money Without Selling Anything

When the economy takes a down turn, one of the best ways to “weather the storm” is to save money!  In this post I will share the top five ways that we see people saving lots of money.

I believe that if you apply these five items, you will save over $1,000 a year.  Don’t believe me?  Try them out!

1. Home and auto insurance

I know that I have mentioned this several times on the blog, but it is so true!  I have had HUNDREDS of stories of people telling me about how much money they have saved by getting new quotes.

Many of them never had to change their current insurer because they took the better quotes back to their current insurer and demanded a better deal.  Sweet!


 

On our Next Steps Insurance page we have links to get both Auto and Homeowner’s  insurance quotes. These allow you to fill in a bit of information and receive quotes without the hassle of having to call around to multiple different companies.

Remember when LendingTree said “When banks compete, you win!”?  Well, the same is true for insurance companies.  Be sure to get your home/renter’s insurance quoted along with your auto insurance because bundling them together will save you 10% – 30%.

2. Life insurance

It is incredible the number of people who have dependents reliant upon their income yet do not have life insurance.  According to LIMRA only 59% of Americans have life insurance, and have of those with insurance have inadequate coverage.

As a teacher and speaker on the subject of personal finances, I have seen many examples of inadequate/no life insurance.  The impact that it has on the surviving dependents is devastating.  I have also seen instances where there was adequate insurance.  The result is much different!

I have also seen a lot of people who are paying way too much on life insurance.  Some people are paying thousands of dollars a year in life insurance premiums who tell me that the cash value will be worth $1,000,000 when they retire.  I tell them that this is great, but if they would have term life insurance and invest the difference in cost, they would have $10,000,000.

I recommend term life insurance equal to eight to ten times one’s annual take-home pay.  For healthy people term life insurance is SO CHEAP.  I personally carry thirty year level term policies on my bride and me.

HavenLife Insurance link - get quotes to save money on life insurance

You can obtain online quotes without speaking to anyone HERE

Go ahead and check them out.  If you do not have life insurance and you have dependents who are reliant upon your income, purchase a policy ASAP.  If you already have life insurance, compare the costs.

My bet is that you will save a ton of money.

3. Zero-percent balance transfer credit cards

I do not know how the credit card industry has been so effective at teaching Americans to believe that 15% is a good interest rate.  But they are great at it!  I cannot tell you the number of times I have heard the following statement during a financial counseling appointment:

“The interest isn’t bad on this card.  It is only 17%.” Or 13%. Or 11.99%.  Or …  You get the picture.

I used to say the same thing (when I was BROKE).  I got “unBROKE” by challenging my belief system and realized that I was allowing myself to be legally robbed of my money!

If you are paying high interest on a credit card, you should seek to restructure that debt.  One great way to restructure debt is to play the “surf the balance” game.  Move the balance to a zero-percent balance transfer credit card and then work like crazy to pay it off.  If it is not paid off by the end of the zero-percent period, surf it again.  This ensures that all of your payment goes to reduce the principal balance of the debt.

Link for 0% transfer credit cards to help save money on interest

There are several 0% Balance Transfer Credit Cards located on the “Next Steps” tab (HERE).  Move the balance and make progress toward 100% debt freedom!

You will save a ton of money by restructuring high interest debt!

4. Online savings accounts

Do you have money in your savings account?  If not, it should by your TOP PRIORITY.  $1,000 as a minimum or $2,500 if you have kids or a house.  I repeat – this should be your TOP PRIORITY!

For those with money in savings, how much interest is your bank paying you?  If it is a local bank, it is likely that the interest rate is very, very, very low (close to 0%).  Online banks pay much higher interest because they do not have to pay the costs of maintaining local branches (people, buildings, etc).  These online banks pay around 5X – 8X the national savings interest rates of other banks.  I hold all of my savings in online banks and have done so since 2007.  They are FDIC-insured and are very easy to use.

Link to online banking options to save money on fees and earn more interest

There are several excellent online banks. Click HERE to see the online banks I use or recommend.

The bottom line is that your money should make you money – the most money possible.  My online banks allow me to do that for all money that I plan on using within the next five years.

5. Groceries and cash envelopes

Cash envelopes allow me to save a TON of money.  How?  I have a written spending plan that my bride and I prepare every month.  In this written plan there are several items that I tend to be impulsive with.  Groceries, dining out, clothing, entertainment, and spending money are the top five impulsive categories for me (can I get a witness?).  To control my impulsiveness, we pull that money out in cash.  We stow away the debit card and only allow cash to be used to purchase items in our impulsive categories.

This one move saved us over $200 a month in groceries alone!  You can read more about how to start with cash envelopes HERE.

Link to budgeting tools and budget boosters, like money saving coupons

You can also use coupons to save a ton on groceries.  In fact, my team has prepared an entire section of money saving tips for groceries under the Next Steps budgeting tab.  You can check it out HERE.

Our Top 5 Ways to Save Money

Saving money, especially a large amount of money, can seem impossible.  Our hope is that after reading this blog post you come away with practical ways to save money NOW!

Some of these savings ideas will take some work.  No one ever says, “I’d love to be on the phone with different insurance companies all day!” However, if it means saving $500 or more each year those phone calls are worth it.  Not to mention, most companies now offer online quotes that eliminate the hassle of waiting on hold.  We’ve heard from numerous people that after they called for new quotes not only are the saving money, but they’re also getting better coverage.

Decide to take action today.  Think about the last time you got a new insurance quote. If you have balances on credit cards look into transferring them over.  Move your savings to an online bank to earn more interest and save on banking fees.  Identify areas where you overspend, and start using cash envelopes and coupons for those things.

I believe that by pursuing these five money saving areas you can save $1,000 or more.  Tell us how you did!

MONDAY MONEY TIP PODCAST: Choosing the Right Insurance

Another episode of the Monday Money Tip Podcast is LIVE! In today’s episode, we’re discussing how to make wise decisions when it comes to insurance providers. Everyone says they can save you money, but what do you really need? In our Current Money Events segment, I’m talking about how our mini-budget tool can help your family not lose momentum during summer vacations. Also, hear a success story from Debbie, whose life was changed because of a budget!

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take the next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:
iTunes
Stitcher
Spotify
Website
YouTube

About the Episode: 

  • We answer the question: “I find the world of insurance so confusing. All of the various companies say I can save money by switching to them. Can you help us figure out how to make wise decisions when it comes to insurance providers? Also, it would be great to know what types of insurance I need – and what we don’t need!”  
  • In our Current Money Events segment, I shares about how our mini-budget tool can help your family not lose momentum during summer vacations.
  • Hear a success story from Debbie, whose life was changed because of a budget! 

Resources:
IWBNIN – Insurance
Mini-Budget Tool
Episode 15 – What Type of Insurance Should I Have?

Quote of the Day: “Insurance is the only product that both the seller and buyer hope is never actually used.” – Unknown

 

MONDAY MONEY TIP PODCAST: How to Win With Your Money While on Disability

Another episode of the Monday Money Tip Podcast is LIVE! In today’s episode, we’re diving into the topic of disability, specifically how to win with your money (including saving and investing) while on disability. In our Current Money Events segment, I’m talking about how to utilize the “Principle of 5 Swings of an Ax.” Also, hear a success story from a couple who’s climbing the I Was Broke. Now I’m Not. Ladder, one rung at a time.

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take the next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:
iTunes
Stitcher
Spotify
Website
YouTube

About the Episode: 

  • We answer the question: “I love what you teach, but I find it very difficult to apply all of the knowledge because I am disabled. Because of this, I am limited on how much I’m allowed to save or invest. Could you help me with some practical steps to begin winning with money while on disability?”  
  • In our Current Money Events segment, Joe shares the “Principle of 5 Swings of an Ax.” 
  • Hear a success story from a couple who’s climbing the I Was Broke. Now I’m Not. Ladder, one rung at a time.

Resources:
IWBNIN – Online Banking
0% Balance Transfer Credit Cards
Charles Schwab
IWBNIN Ladder
SSI disability
Receive SSI
Medical Eligibility for Disability Benefits
SSI Asset Limit
Blog: How much cash or money can I have
Overview of Disability Programs
Plan to Achieve Self-Support (PASS)
SSI Spotlight on Resources
Blog: Saving Money While Receiving SSI
Ticket to Work

Quote of the Day: “You can do this!”

Long Term Care Insurance

Long term care insurance is something that many people could benefit from and it is definitely worth looking into.  If you ever need long term care, it is a monstrous expense. It is an expense so large that in fact, many big name insurance companies have actually stopped providing it.  Two out of ten adults will need long term care in a nursing home or other type of facility at some point in their lives and this on average costs between $6,000 and $10,000 PER MONTH!!

Because this expense is so huge, the government will force you to liquidate any and all assets you have before they will step in with any assistance.  So any money in the bank, house, car or item of value, will have to go before Medicare or Medicaid will help to cover. How sad would it be to work your entire life, then get sick and all that you have worked for go to pay for long term care?  Nothing left behind to your heirs. I definitely do not want my money spent that way if I can avoid it.

Jenn and I decided when we build our new house, to add in a “mother-in-law” type suite so that in the case that one of our parents fell ill, we could provide for them to prevent them from going into a nursing home.  We even have large hallways that could accommodate a wheelchair if necessary.

If you think that this burden would be too much for your family to bear, you should look into long term care insurance.

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Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.

SPECIAL OFFER: This month only, get your own copy of Joe’s book, I Was Broke. Now I’m Not. for 25% off plus free shipping!  Get your copy HERE before July 31st!

“I can promise that if you read and apply what has been written here then you will eliminate financial regret from your life.” – Joe Sangl