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Learn To Save - Create An Emergency Fund
Wed, 02/25/09 – 18:35 | 2 Comments

I find it very interesting to see the different saving/spending dynamics of the older generations compared to the youth of the world today.  With the help of movies and TV, much of the youth of …

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Buying Insurance - The Good and The Bad
Mon, 04/20/09 – 15:14 | No Comment

InsuranceInsurance. It always has a negative connotation, because it is usually a protection against something bad or negative happening.  As it is important to always keep a positive attitude, it is also important in measuring risks and learning how to manage those risks.  Knowing how to buy insurance can be a great tool for you as well as a safeguard as you strive for financially freedom.

Nowadays, you can almost find an insurance policy for just about anything.  It all depends on how much you’re willing to pay as a premium.  Professional prospected college athletes sometimes purchase insurance policies as a protection in case of injury during their college year.  Their premiums can be insane, but it can act as a hedge in case of injury, one of which could support them the rest of their life.

Think of it this way, there are many ways you can manage risk in your life.  You can avoid risk, which would result in you keeping yourself in shape, maintaining a good diet, and avoiding risky investment opportunities that leaves you vulnerable to a lot of downside risk.

You can take on risk, meaning that you carry the full burden yourself.  Many people choose to not medically insure themselves or only buy “liability” insurance for their cars. Buy doing this, you fully take on the risk yourself in case of any problems.

You also have the choice of reducing risk.  Continual auto check ups as well as visits to the doctor can keep your risk at lower levels.  This helps of reducing risk of a problem occurring.

The other option you have is to completely transfer your risk. You can transfer your risk by purchasing an insurance policy.  By doing so, you pay a “premium” to have another company assume the risk for your potential problems.

Most likely you will eventually buy some sort of insurance in your life.  When considering insurance plans and what to buy, you may want to consider the following:

Stay Big
There are many companies out there fighting for your business.  It is best to stick with the larger companies who have been around for a while and have a lot of capital backing.  It is not unusual for insurance companies to go bankrupt, which could be a disaster for you if you are in the middle of an emergency.  Some companies may tempt you with lower premiums, but the extra few dollars a month is worth the security of a strong, reputable company.

Look For Discounts
Many insurance companies offer discounts.  For instance, well performing students are often given a lower monthly rate.  You may be eligible for a discount, depending on your employer as well.  Those who have family who have retired from the military are most likely eligible for USAA insurance, which is a very cost-effective, private insurance company which services military families.  Even if your father or even step-father was or is in the military, you are most likely eligible for USAA.

Compare Quotes
Just like any other industry, insurance is a business.  As such, companies are competing for your business.  Call around to several companies getting their quotes for their services.  You may be surprised at how much of a discount they may be able to offer in order to win over your business.

Purchasing insurance is an important element of financial planning.  All it takes is one medical emergency or one severe car crash, to put you in a pile of bills.  By purchasing insurance, you transfer most of the risk liability to your insurance company, helping you to focus on other important aspects of financial planning.

Understanding The Different Types of Mortgage Loans
Tue, 03/24/09 – 16:37 | No Comment
Understanding The Different Types of Mortgage Loans

On PlanningFinancials.com, we discuss a variety of different types of lending options.  Debt markets are so critical to the US economy and to continuing to keep the money supply liquid.  Mortgage loans are critical to …

Learn To Save - Create An Emergency Fund
Wed, 02/25/09 – 18:35 | 2 Comments
Learn To Save - Create An Emergency Fund

I find it very interesting to see the different saving/spending dynamics of the older generations compared to the youth of the world today.  With the help of movies and TV, much of the youth of …

Managing Debt - A Key to Success
Tue, 02/3/09 – 11:43 | No Comment
Managing Debt - A Key to Success

It can drive one to insanity.  It is frequently the cause of murder and suicide.  It can overcome your life and, if you allow it to, completely destroy your path to success.  This nasty beast …

Tax Planning - How Save Money
Mon, 01/26/09 – 13:24 | No Comment
Tax Planning - How Save Money

One big expense that will most likely follow you around your entire life is that of paying taxes. Effective tax planning is essential in personal finance and financial planning, as it is the single-most biggest …

Get The Job - How To Make A Good Resume
Mon, 01/19/09 – 21:35 | No Comment
Get The Job - How To Make A Good Resume

In the post, Preparing For A Job Interview, I discussed several important elements to remember when preparing and executing a successful job interview.  Here I am going to talk about one of the most important …

Preparing For A Job Interview
Tue, 01/13/09 – 20:33 | No Comment
Preparing For A Job Interview

We have said before that with the new generation growing up, statistics show that people between the ages of 18 and 38 will change jobs an average of 10 times.  With this being the case, …

Key To Becoming Rich: Build Up Assets, Reduce Liabilities
Thu, 01/8/09 – 22:41 | No Comment
Key To Becoming Rich: Build Up Assets, Reduce Liabilities

Of course everybody wants to wake up everyday with more money in their bank account then when they retired to bed the night before.  It seems as time goes on, the youth of the world …

Different Types of Loans and Lending Institutions
Sun, 01/4/09 – 17:54 | No Comment
Different Types of Loans and Lending Institutions

As I discussed in the consumer loans post, credit markets and lending are an essential part of financial planning and personal finance. I wanted to discuss the different types of lending institutions. By …

Beware of Gift Cards - Especially in Tough Economic Times
Fri, 01/2/09 – 0:06 | No Comment
Beware of Gift Cards - Especially in Tough Economic Times

I’m sure almost everyone has received a nice card, whether it be for Christmas or for congratulating you on an achievement, where inserted inside the card was a nice gift card to your favorite department …

Time Value of Money - Become Rich
Wed, 12/24/08 – 11:08 | No Comment
Time Value of Money - Become Rich

Many wish that money grew on trees or that they can make money while they sleep.  I will leave the first wish up to scientists and the government, but the second is easily attainable.  This …

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