Consider your healthcare options
With our health at the focus of this year’s coronavirus chaos, it’s important to review your healthcare insurance options. If this year has taught us anything, it is that our health is our wealth.
While it may be tempting to switch to a cheaper plan to cut costs, consider the benefits that add value to your plan such as cost-sharing, preventative care, telemedicine, nurse helplines and care management.
Make sure that you’re comfortable with your healthcare coverage in terms of your budget and your coverage as the year comes to a close.
Bolster your emergency fund
With a year full of heart-stopping emergencies, such as furloughs and job losses, 2020 has been a reminder of just how critical having an emergency fund is. Most experts recommend keeping at least three to six months of expenses on hand in an accessible account.
If you have an emergency fund, then check to make sure it hasn’t been depleted in the chaos of this year. If you don’t have an emergency fund in place, it’s time to take action.
This might mean taking a look at your income and your expenses and finding ways to cut expenses or increase your income to free up a little bit of cash each month. It will be worth it as you watch your savings add up.”
Once you have a solid emergency fund on hand, you will be able to handle whatever surprises life throws your way without taking on debt.
Take a closer look at your debt
If you have high interest loans on the books, such as credit cards with 17 percent APR’s or mortgages with high interest rates, then it might be time to reconsider your repayment strategy.
Now’s the right time to refinance your home loan since mortgage rates are near record lows. I also recommend taking advantage of temporary debt relief programs if you’re eligible. Additionally, consider a balance transfer if the numbers work in your favor. Some credit card companies offer 0 percent for 12 months, which will enable you to pay down your debt and pay less in interest.
No doubt, refinancing your debt could be a good idea if you are able to find better loan terms. Take a few minutes to shop around for better terms, such as a much lower interest rate, before you rule out this idea. A careful refinance could potentially save you a large chunk of change. Imagine heading into 2020 with lower monthly debt payments.
The past year has likely been a big challenge. But you can take action now to finish out 2020 on a strong financial note. Allow the momentum you build in the next few weeks to propel you toward greater success in the New Year.
Thanks to the FLM family for a great year. I greatly appreciate everyone for following my monthly tips this year. Let’s stay healthy and make 2021 a better, safer, healthier year!
For financial lifestyle tips and advice contact [email protected], www.1stcig.com, 312-243-3907/Office * 312-952-8040/Cell.