I meet a lot of people these days who are in the midst of their pursuit of Debt Freedom. I call it a “Debt Freedom March.”
They have used a tool like our Debt Freedom Date Calculator to calculate their Debt Freedom Date, and they have realized just how much of their money is going to a bank or lender. For the average family with non-house debt, somewhere between $500 and $1,250 per month is being paid in monthly payments. If you include the house payment, that average amount is between $1,250 and $2,000 or more per month.
For those who remain focused and diligent, debt freedom is achieved, and it is incredible!
Then the inevitable question shows up – “What’s next?”
If you are one of those who is asking this question, here are a few things to consider using the newly-released money for:
- Pursue a dream
- Give more away to causes you really believe in
- Build a larger emergency fund
- Invest money into a dream
- Invest money into someone else’s dream
- Reward yourself with a purchase of something you’ve always wanted
What other things would you recommend using this money for?
I taught over 500 young people about money at West Ridge Church in Dallas, GA recently, and it was INCREDIBLE! I was teaching from my book, What Everyone Should Know About Money Before They Enter The Real World.
Here is what stood out to me:
- They were very energetic – but also paid attention very well
- The compound interest example captured ALL of their attention – even the 6th and 7th graders!
- Young people dream more than adults
- Their dreams are much less impacted by the potential financial cost
- They are just more passionate about life – period!
- Most of them are more aware of money and money issues than the young people I was teaching five years ago. I think the global recession has caused this generation to truly pay attention to money.
- They clearly know that it is EZ™ to win with money!
In this day and age of identity theft, it is vitally important you monitor your credit report.
You can get a copy of your credit report FREE (not a misleading statement like so many of those TV commercials you see that say “offer implies enrollment in a fee-based credit monitoring service). The for-real-free credit report is available at: AnnualCreditReport.com
According to their website …
AnnualCreditReport.com is a centralized service for consumers to request free annual credit reports. It was created by the three nationwide consumer credit reporting companies – Equifax, Experian and TransUnion.
AnnualCreditReport.com provides consumers with the secure means to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies in accordance with the Fair and Accurate Credit Transactions Act (FACT Act).
Be sure to download your credit report from each of the big three credit reporting companies – Equifax, Experian, and TransUnion. A lot of the information will be repetitive, but it is important to check out all three.
Many people may know that they need term life insurance, but they do not clearly understand how the process works. In the presence of unanswered questions, many people make a choice (a poor one) to do nothing. My hope is that this post will help answer your questions about the term life insurance application process!
Acquiring term life insurance generally follows the following steps.
- Find term life insurance that fits your needs.
- Request and fill out an application (can obtain from your insurance agent or do this ON-LINE)
- A nurse contracted by the life insurance company will contact you to set up an appropriate time for a health analysis (usually involves a blood test and a basic physical).
- Your application is either accepted or denied.
- If accepted, you will be provided your actual premium rate cost and the policy will go into effect once payment is made.
NOTE #1: Smoking and weight issues do not necessarily mean that you can not obtain life insurance, but it usually results in higher premiums due to increased health risks.
NOTE #2: I carry 10 times my annual take-home pay in term life insurance in 20 or 30 year level term coverage. For example, if a person makes $30,000 in annual take-home pay, then that would be $300,000 in term life insurance coverage.