Here is the truth, every day is filled with financial choices. How much should you spend on your lunch every day? Do you have health insurance with the lowest premium? Are you able to afford a trip?
You can make your life simpler by becoming more conscious of your finances. Bank accounts are just one element of your personal finances. Review your financial statements, and make these below-mentioned financial choices.
- 1 Say “Yes” to the Extended Auto Warranty
- 2 Consider Embedded Insurance to Cover Your Assets
- 3 Save for Known Expenses
- 4 Negotiate for the Home Warranty -and Keep It
- 5 No Matter Your Income, Invest for Retirement
- 6 Have an Emergency Fund in Place
- 7 Find Out What You are Valued and Then Ask for an Increase
- 8 The Bottom Line
Say “Yes” to the Extended Auto Warranty
If you have a vehicle, you can go wherever you want. However, a vehicle that travels more is also more susceptible to breakdowns.
This can cause you to face numerous headaches and thousands in repairs expenses.
But if you buy a secondhand vehicle or the manufacturer’s warranty expires, the extended warranty can help you avoid such troubles.
Modern vehicles have advanced software that can be prone to malfunctioning. With a longer warranty, you can rest assured that future costly expenses will be insured.
Consider Embedded Insurance to Cover Your Assets
Gone are the days when you had to browse through a long list of insurance providers to get car insurance. We aren’t even getting started with that cumbersome paperwork.
Thankfully, Salty’s embedded insurance platform makes it possible to get the insurance you need when you need it the most.
Its AI-powered platform browses through several insurance carriers and fetches you the best possible policies for your asset purchase. This saves you tons of time and effort.
Save for Known Expenses
The extended warranty you have purchased covers major costs. However, you must also think about regular maintenance.
For your specific vehicle servicing schedule, consult the owner’s manual. Ask your dealer for information about general costs.
You’ll never face a financial crunch if you set the money aside every month to pay these expenses.
The same strategy applies to pets and personal care. You can ensure the expenses are covered so that you have funds available in the event of an unexpected circumstance.
Negotiate for the Home Warranty -and Keep It
You may be able to get an extended warranty on the home you purchased. Inquire if the seller doesn’t offer the warranty.
Home warranties are offered to protect your main mechanical components, like the HVAC system and appliances.
These are typically not covered by homeowner insurance and are expensive to repair or replace. The majority of insurance policies last one year, but they can be renewed at an affordable rate.
No Matter Your Income, Invest for Retirement
Physical disability is inevitable, whether you’d like it or not. So, remember to save for your retirement. It is recommended to invest at least 10% of your salary in your retirement plan.
Review your options and concentrate on target-date funds that are pre-packaged. They remove the uncertainty of investing and permit you to modify your portfolio as you near retirement.
Have an Emergency Fund in Place
Maintaining an emergency fund is considered an effective financial planning practice because it helps you avoid dipping into your long-term savings when something unexpected comes up.
Ideally, you should have enough money saved to cover three to six months’ worth of living expenses.
This will help you stay afloat financially if you lose your job, experience a medical emergency, or have to deal with another unplanned expense.
Start saving today if you don’t have an emergency fund in place. Begin by setting aside a small amount of money each month and gradually increasing the amount as your budget allows.
You can also consider creating a dedicated savings account specifically for your emergency fund.
Find Out What You are Valued and Then Ask for an Increase
Even if your work is good, it’s crucial to be aware of what you’re being paid for the job. Check your income and browse websites like Glassdoor to see whether your pay is fair.
Then, keep track of your annual performance in your current workplace and determine at the end of the year whether you should ask the management for a salary hike or not.
If yes, it would help to have a specific number in mind (say, 30% hike on your current in-hand salary).
The Bottom Line
It takes time and significant consideration to make financial choices. For instance, you can choose to stay in your current job or pursue your entrepreneurial goals.
You can invest in bonds, stocks or tangible assets like real estate. These investments require thorough analysis and research.
Some financial choices are simple enough and easy to make, like considering embedded insurance to cover your valuable assets. You’ll feel more secure after you’ve made these choices.