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How to Get More Financial Peace of Mind

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How to Get More Financial Peace of Mind

Money troubles kill relationships. They also cause major stresses, catalyze health problems, ruin plans, mess up sleep schedules, and so much more. We hate to admit it, but money is easy to worry about, and many of us do it a lot. What’s more, there is good reason to worry about money. Without enough of it, we can’t live where we want, eat what we want, get educated, have a fun time out of the house. Like it or not, your sense of well-being has much to do with how much money you have and how you use it. So here are a few ways to get more financial peace of mind.

Life Insurance

Perhaps the best way to get peace of mind in your financial life is to buy life insurance. If you’ve never thought about buying life insurance before, you probably don’t realize how inexpensive it can be. Many people find that life insurance quotes are much lower than they anticipated, especially for people who are young and healthy. Life insurance creates peace of mind not just for you, but for the people who depend on you for income and security. If you’re interested in getting term life insurance quotes, we suggested checking out Fabric, a life insurance innovator that offers instant decisions and affordable policies. It is perfect for absolutely anyone, but especially families and parents, who have realized the importance of planning ahead when it comes to their financial well-being and taking the stress out of their future.

If you find that you no longer need a life insurance policy, you can consider selling your life insurance policy for cash once you reach a certain age to help support your family or health expenses.

Know Where Your Money Goes

If you’ve ever made a budget after a long period of not paying attention to your money, you know how much it hurts. You may feel like your spending record is judging you, so some people avoid budgeting at all costs. But the only way to spend money more wisely is to take a close look at how you need to spend, and how you actually spend in practice. Often there is too much difference between these two, and you should find a way to spend your money according to better measures and goals.

Get an Emergency Fund

Financial Peace of Mind
Photo by Nathan Dumlao on Unsplash

Building an emergency fund and contributing to it regularly is one of the most important financial habits you’ll ever create. An emergency fund will help protect you in the event of an accident, a breakdown, and any number of unexpected expenses. It takes a while to build an emergency fund large enough to cover you and your family for six months (the oft-recommended amount).  However, once you’ve managed to build it, you’ll find it’s worth it. An emergency fund provides great peace of mind because you know you have a safety net.  Plus, to create one you have to be financially responsible and disciplined.

Final Thoughts

There are many ways to live beneath your means and acquire better financial peace of mind. We lose our cool financially when our money is out of control. Learn the basic ropes of personal finance, spend time caring for your own financial garden, and you may be surprised at the extent to which it improves your life. People don’t feel secure when their means of sustenance and shelter are constantly in upheaval. When you have financial security, you are very likely to have physical security, which can only have a positive impact on your state of mind.

Read More

When Do You No Longer Need Life Insurance?

Finding Low-Cost Term Life Insurance

Realized Benefits of Emergency Funds

5 Fun Ways to Educate Your Child about Money This Summer

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Ah, summer.  Your kids get to take a break from the school grind, and as a parent, you get to take a break from the homework grind.  While your child will likely have fun hanging out with friends, playing sports, going to the movies, and reading, now is the time for you to sneak in a little summer education.

Teaching our kids about money is one of the most important things we can do as parents.  What our children learn about money and see us do with money will likely affect them for years to come.  This summer, take the time to educate your children about money while making it fun.

TD Bank’s Summer Reading Program

Educate your child about moneyTD Bank has a summer reading program where your kids will earn $10 if they read 10 books.  TD Banks are mainly on the East coast, so not all kids can benefit from the reading program.  However, all kids can take advantage of TD Bank’s summer reading list for kids from Kindergarten to 7th grade.

The list is broken down by grade level, and each book suggested has a financial lesson.  For instance, one of the books for 7th grade is Money Hungry, a story about a young girl who is driven by greed.

TD Bank also has a section for parents that includes a story that you can read to children along with worksheets you can do with them.  In addition, there is a virtual stock game that your kids can play to practice investing in the stock market.

Dave Ramsey’s Financial Peace, Jr.

Dave Ramsey takes his advice and rolls it into a package for children.  Financial Peace, Jr. includes audio CDs as well as a workbook.  There are also cash envelopes, stickers, and other fun activities for kids.  This kit is for kids ages 3 to 12.  When two of my kids were 4 and 8, they loved listening to the CDs and doing the activities.

Nick Jr. Money Games and Activities

If you have little ones who are just starting to learn about money, why not try Nick Jr.’s Money Games and Activities.  These activities primarily help young kids differentiate coins and learn the value of each one.

Star Banks Adventure

T. Rowe Price has created this game as part of their Money Confident Kids program. This game will likely be appealing to kids thanks to the video game-like presentation. Parents will love that the program teaches kids about inflation, saving, spending wisely, and asset allocation, among other topics.  This game is available as an app and as an online game.

Board Games

On a long, hot summer day, nothing beats staying inside playing a board game.  Many classic board games offer your children entertainment AND financial education.  Some of my favorite for this purpose are Monopoly, Life, and Payday.

Use these activities a few times a week, and your child will not only have a fun summer, but one that is filled with financial lessons.

What are your favorite activities and games to teach your kids about money?

How Your Confidence Affects Your Finances, Part Two

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For part one of this series, go here.

In our earlier post, we talked about how debt can seem insurmountable to some, as documented in the movie, Maxed Out. Unfortunately, some people feel their debt is so overwhelming that they take their own lives. That includes a college student who owed $12,000. While $12,000 is not a small sum, it’s not worth taking your life.

Debt and Your Self Worth

Our culture recognizes that many people identify their worth by their jobs. When we meet someone new and tell them what we do for a living, we say, “I am a teacher” or “I am an engineer.” We literally take on the identity of the job that we do.

What is not discussed is that we often measure our worth by our debt, also. If you’re in debt and struggling to make your monthly payments, it’s easy to feel worthless and hopeless. When my husband and I finally faced our nearly $57,000 in credit card and student loan debt, I felt embarrassed and stupid. After all, how did I let myself get in this position?

Your Thoughts Can Determine How Quickly You Can Get Out of Debt

Keep Calm Payoff Debt 2You may begin your debt pay off journey as I did–chiding myself and feeling like it was hopeless. How would I pay off this debt that was greater than our annual income? The whole process felt hopeless, and I wanted to give up before I even started.

But through our two year long journey thus far, I learned some things that make paying off debt easier.

  1. Be confident. When I stopped chiding myself and instead decided to encourage myself, the weight caused by debt was lifted. Instead of thinking, “I’m so stupid for being in this much debt,” I thought, “We’ve made mistakes financially, but now we’re on the right path. We’re making strides in our debt repayment plan, and eventually we’ll be out of debt.” This encouraging self-talk increased my confidence and reduced my anxiety. I felt empowered.
  2. Look at the little picture. Sometimes looking at the big picture–the total debt that you owe–can be overwhelming. Instead, focus on the smallest debt. If you put your extra money on the smallest debt, you’ll see progress more quickly. If you owe $60,000 but your smallest debt is $5,000, focus only on that one. Don’t look at your total debt load. You’ll feel elated as you watch your progress paying down the smallest debt.
  3. Celebrate small victories. Encourage yourself every step of the way. Praise yourself when you’re able to pay more off in a month than you typically can pay. Celebrate when you pay off one debt. Shout in your house that the debt is gone. Share it with your friends if they know of your debt struggle.

If you’re in debt, you can either hurt yourself mentally and physically by berating yourself and wallowing in self-pity. Or, you can heal yourself mentally and physically by praising and encouraging yourself through the long journey of paying down debt. Which would you rather do?

How do you encourage yourself when paying down debt?