6 items for your financial Kit Emergency First Aid

6 items for your financial Kit Emergency First Aid -

are your finances organized and prepared for a financial emergency?

Do you have a plan if a financial emergency happens?

When our youngest son, Joshua, was born, we started saying, "If it had been our first, it would have been our last."

This little boy had more energy and could get into more scrapes together all our other children.

When he was ten and a half, he stripped to his bed, took a plastic sword and chased his four older brothers and sisters around the house, earning the nickname "Conan the barbaric baby. "

By this age, he also jumped from the upper bunk bed (three points) and "stolen" out of our travel trailer (four points).

Joshua was why we bought a first aid kit seriously.

every family needs a good first aid kit for unexpected accidents, they also need a first aid kit handy or financial ways to help protect their financial future.

I think every family can be prepared for financial emergencies by assembling a well-stocked first financial aid kit.

1. An account of emergency

savings

This account is not an investment account, it does not include the IRA, pension or CD accounts.

is not intended growth, but safety.

these are funds that are accessible in case of unemployment, emergency repairs to the home, or unexpected medical bills.

the best way to build this account is to establish a family budget. I recommend to automatically transfer funds from a check or checking account into a savings account each week.

A good rule of thumb is save the sentence of three months of living expenses to dual income households or six months for a single income family .

2. Life Insurance

This is an easy ingredient in your financial package. You will need enough money to your financial burden could invest money and live modestly on the product.

For the military, the best buy is still SGLI, or life insurance group servicemember. The army pays a premium to the military, to maximize the benefits. If your situation requires additional life insurance, go to USAA for the best deals for the military and their families.

3. A testament

Here's another easy. The main section of this paper criticizes assign a guardian for your children. In many states, the surviving spouse can only get a third to half of the assets that were in your name alone.

Your children get the rest and if they are minors, an administrator could manage their money until they become adults.

Make sure the beneficiary designations on all 401 (k) Plans, IRAs, life insurance and banking are also updated.

4. A retirement account

A surprising number of people do not benefit from tax-deferred accounts formidable offered by their employer, which include "401 (k)" and "403 (b ) "plans if you are a reservist with another full-time job.

The Thrift Savings Plan (TSP) is a savings and retirement investment plan sponsored by the federal government. This plan offers similar tax benefits that many private corporations offer their employees under "401 (k)" plans and they are full laptop when leaving the army.

5. A credit rating Good

The best way to rebuild a good FICO or credit score is three steps:

1. pay more than your minimum payment (although it only $ 5 / month)
2. pay a day early instead of a day of delay (you can set up automatic transfers from your checking account to your company credit card minimum payments)
3. never let your credit drop available within 50% of the total credit available (eg $ 2.500 on a credit line $ 5000.)

6. A College Fund for the babies!

Select an account of education savings at low cost, a good selection of investments and tax relief. One of many options is a qualified state tuition plan, also known as 529 plans.

Begin to research plans in your state. These contributions will be tax deferred and might even be your state income tax deductible if you are a resident of that State.

When money is withdrawn for college, it is only imposed on the income of the student tax rate.

If the child does not go to college, the money can be appointed to another beneficiary or removed to a 10% penalty.

What in your first financial aid? kit

photo credit: H is for home via photopin cc

Tweet