Is Your Financial Puzzle Out Of Whack?

What’s A Financial Puzzle?

Everyone has a financial puzzle, most folks just don’t know it.    Your financial puzzle is your financial life put together as a puzzle.   Pieces of puzzles have to fit together to complete a puzzle, the same is true with your finances.    To have a steady financial life, all your financial pieces have to fit together; if they are not fitting like a puzzle, you could have financial troubles.

The Top 2 Financial Puzzle Pieces

  • Your Insurances

Insurance is an absolute necessity.  You need insurance to protect you and your family from the unknown.

You have auto and home insurance to protect yourself from liabilities and your property from physical damage.    You may have an umbrella policy to extend your liability coverages.

You have life insurance to protect your family in case something were to happen to you.   Some financial planners say that you can never have enough life insurance….that may be true, how do you feel about that?   Do you have enough life insurance on yourself and your spouse to pay off your mortgage, all outstanding credit card debts, your auto loans and if you have children, enough to put them through college?

If you do not have enough insurance coverages, your financial puzzle will be lopsided.   Work closely with your insurance agent; make sure they advise you on the proper auto, home and life insurance coverages.    Your agent should also be able to help you save money on your insurance premiums.

  • Your Debt

Financial puzzle and debtDebt is ugly.   It us easy to get into it but oh so difficult to get out of it.   Credit card debt is the #1 reason for someone’s financial puzzle to be out of whack.

You waste so much money on credit card debt with fees and interest.   Make a commitment to yourself to repair your credit card debt.   This will help improve your financial puzzle.

Your Commitment

Avoid adding on additional debt.   If you cannot afford to pay for something in cash, don’t buy it.

Stop missed payments; they will catch up with you when your credit score gets lowered.

Stop late pays.    If you cannot afford to pay off your credit card in full every month, do not use your card.

Debt that is not attended to lowers your credit score.   A low credit score will increase the cost of everything you buy.  So if you thought you had financial troubles before, wait until your credit score is low.

You can do it, with a commitment to yourself you can reduce the amount of your outstanding debts.