Earn $65K Or More? Here Are 8 Tips To Protect Your Finances And Your Family

Does your annual income top $65,000? Congrats! Check out Money.com’s tips to keep as much of that money as possible, grow your wealth, and protect your loved ones.

1. Consider A Life Insurance Policy

Imagining how your family would manage without you is something no one wants to think about. However, it’s critical that you consider it so you can plan accordingly. Life insurance offers a tax-free payout if the worst were to happen to you. This could help cover housing costs, buy food, or even help your child go to college.

Life insurance is relatively affordable, depending on your health and age. Some plans offer as much as $1 million for just $25 per month. Make sure you shop around, check reviews, and compare companies to find the best offer.

2. Build An Emergency Fund

You never know when a surprise expense will arise, so you should make building an emergency fund a priority. Most experts suggest saving three to six months’ worth of living expenses and reserving this sum in a separate bank account. 

The amount may seem impossibly high, so Money.com offers these tips to help you get started:

 

  • Open a new saving account specifically for your emergency fund
  • Avoid checking the balance frequently or withdrawing money for expected expenses
  • Pay yourself first when you get your paycheck — no ifs, ands, or buts

 

Look for savings accounts with high APYs. These give you the best returns, often have lower fees, and can help you reach your savings goals faster than a regular checking account.

3. Refinance Your Mortgage

Now is the time to refinance your home and take advantage of a lower mortgage payment. You never know when the rate will go back up, so it’s better to do it sooner rather than later. That’s because you can cut your housing expenses by hundreds. For example, if you received a $400,000 mortgage in 2017 and have a 5% APR, you could save up to $357 every month by refinancing. 

4. Get A Home Equity Line Of Credit

If you already refinanced your house, you might want to get a home equity line of credit (HELOC), too. It’s a type of low-interest loan that you can use to pay off high-interest debts like credit cards, put toward a home renovation, or pay for a surprise bill. Make sure you compare loans and offers to make sure you’re getting a better deal than what you’re currently paying.

5. Refinance Your Auto Loan

Most people are quick to jump on home refinancing but often forget that doing the same for their car can also lead to huge savings. By cutting your interest payments, you could sock away several hundred dollars every year. Look for a service that offers low rates, great reviews, and a high rating from the Better Business Bureau.

6. Get A Home Warranty

A home warranty protects everything that your home insurance policy does not. From regular wear and tear on your appliances to your water heater, this ensures you don’t have to spend an arm and a leg on replacements or repairs.

Right now is the best time to shop for a home warranty since many companies haven’t changed their pricing models to reflect this year’s changes. So if you act quickly, you can get peace of mind knowing your home is completely protected for as little as $35 to $50 per month.

7. Get A Debit Card That Rewards You For Purchases You Already Make

You know that you can earn generous cash back rewards from most credit cards, but if you look hard enough, you can find a few debit cards that offer the same. Aspiration, for example, is currently offering Conscience Coalition members 3% to 5% cash back on all purchases made from qualifying companies.

8. Protect Your Home And Your Family With A Security System

Installing a home security system used to be a long, arduous process. There was always a door code to remember and the worry that the police could come to your home if you unintentionally triggered the alarm. 

But with SimpliSafe, you can protect your home, family, and possessions from intruders, fires, water leaks, and it even allows you to get medical help from your phone. SimpliSafe costs 0.50 cents per day and gives you 24/7 monitoring. Not only can you get more peace of mind, but you can also save on your homeowners’ insurance since some companies reduce premiums by 20% on homes that have security systems.

 

Source
  • Everyday Money. “Making Over $65K Per Year? Here Are 8 Smart Money Moves You Can Make Now.” Money, 21 Sept. 2020, money.com/here-are-smart-money-moves-you-can-make-now/.

 

Ian Schindler