James Wagnet – Insurance Insights

The use of money has chan ged drastically within the past 40-50 years. Many, if not most of our grandparents and great-grandparents depended on the family farm and their own handicraft for much of their subsistence. Now, most Americans live on a “cash basis.” Unfortunately, due to poor spending habits, or a lack of planning, we often neglect the financial issues of family protection – including adequate health and life insurance, and retirement savings.

The following suggestions might help you manage your “money” challenge.

€ Be patient – We often get in a money bind because we’re not patient. If you can’t afford an item you’re wanting – wait! Save! Set aside an amount every check, and make the purchase when you can pay for the item, nor make a considerable down payment on it.

€ Avoid overuse of credit cards – One of the surest ways to get into a financial squeeze, big time, is to carry substantial amounts on credit cards from month to month. When you are paying 18 percent APR or more, you’re being swallowed by debt. As a rule, don’t accumulate more on plastic than you can pay off in one month, or two months, max!

€ Use the B-word Budget! – In other words, live within your means. Look at your income, look at your set obligations – housing, food, utilities, fuel, contributions, clothing, etc. Don’t forget that health, life, and property insurance are fundamental parts of a sound financial plan. take care of these priorities, then consider what you have left to spend on “stuff.”

€ Begin a savings program – Drink fewer soft drinks. Eat a few more sandwiches and go out less. Cut back on frivilous spending and start a regular savings program. Save by payroll deduction, if you can. It’s easier not to spend it, when you are not used to seeing it. A good rule of thumb is to pay yourself as you go. That means setting aside an amount for retirement savings. If you are fortunate enough to live into your golden years, you’ll be glad you saved along the way.

Consider the above and put a plan together. Take steps now to manage your income!

JAMES WAGNER is a State Farm Insurance representative.