5 Ways to Safeguard Your Financial Plan

If we’ve all learned anything this year, it’s that unexpected events can really throw us for a loop. Throughout 2020, some people have experienced financial hardship, whereas others have enjoyed smooth sailing so far. But we can all learn some important lessons from these turbulent times. Never assume anything and take steps to safeguard your short- and long-term financial plans.

On that note, these five steps can help everyone to prepare for future uncertainty.

Reduce debts. Seeking debt counseling to formulate a plan, or even consolidating debts, can be a wise idea for many of us. If you can reduce interest rates and make only one payment per month, you can better plan your budget around unexpected expenses.

Examine each item in your budget. Call several insurance companies to compare rates on auto and homeowners insurance. If you subscribe to three streaming services, consider dropping to just one. Cancel any renewing subscriptions to products or services you no longer need. Use a browser extension to help you locate the lowest prices when shopping online. These ideas, and others, can help you to carefully trim any excesses from your budget.

Divert more to emergency savings. If you don’t have an emergency fund already established, get to work. Having three to six months of expenses in the bank is a wise idea, especially if you have any concerns about future job stability.

Consider your insurance options. Economic instability isn’t the only thing we should all worry about. Life insurance protects your family in the event of your untimely passing, and disability can protect all of you in the event of serious illness or injury. Consider your individual risks and speak to a qualified insurance professional about your options.

Refinance your mortgage. With rates falling to historic lows lately, now is the time to consider refinancing your mortgage. You could save hundreds on your monthly payments, and thousands in interest over the term of your loan. Or, you could shorten your repayment term to 15 years and retire with your home paid off.

Do keep in mind that refinancing can be a bad idea if you plan to sell in the next year or two.

Give us a call to discuss these issues and anything else that’s on your mind at this time. Remember, it’s always wise to prepare, but don’t make impulsive decisions out of fear.