Funerallink Blogs

Tag: savings

  • What Makes Insurance Different From Savings

    What Makes Insurance Different From Savings

    Financial freedom is different to different people. For some, this can only mean not being able to work their entire lives. For some, this means having to buy all of their heart’s desire. While for some, this means having to enjoy life to the fullest through the comfort’s provided by stable finances.

    While financial freedom is approached differently by different-minded people, at a practical level, most people rely on two financial movers to achieve financial freedom, these are savings and life insurance.

    But, any of these options are really the answer? What makes these two different? Let’s find out.

    Both are Must-Have

    Let’s face it. Insurance protects you in the long run. While savings, on the other hand provides you a financial blanket for immediate and long-term financial woes. Their functions differ as savings is more liquid while the other requires regulatory processes and documents that you must comply with. But, there is no doubt that you’ll need both to progress in your dreams of financial freedom.

    Benefits of Saving

    As mentioned earlier, saving money provides you with immediate and long-term financial blanket in cases of emergencies or impulse purchases. Your savings are all yours to control. Whatever you put into your account remains the same.

    Your savings can protect you against unexpected losses (in cases of business operations). Your savings can help you purchase a new luxury item. Your savings can fund your next out-of-the-country trip and more. With your savings, you can pretty much do anything without having to worry about your next inflow.

    Benefits of Insurance

    There are insurances that are mandatory to your lifestyle, business or properties. For example, your newly-built house must be paired with a comprehensive insurance in the instance of unforeseen natural disasters. If your house requires massive repairs, your savings won’t cover for the expenses. Your insurance will.

    For a newly-bought car, purchasing an automobile insurance will help you from the overwhelming expenses of repairs and maintenance should the need arise. Also, one insurance policy that you must purchase is a life insurance. You can protect yourself against the hefty amount of expenditures you’ll incur from life-threatening diseases, disabilities, and even untimely death.

    Smart Money Tips

    Benefits of Combined Approach

    Most financial experts would agree that saving and purchasing an insurance would provide you the best financial protection from unexpected expenditures and provide you the best quality of life you desire. Make sure to speak with an insurance agent to avail the best possible policy you’ll need to suit your lifestyle and choose the best saving instruments that will give you most convenient access in times of need.

     

    Photos: Pexels.com

  • Savings Tips You Need to Try Now

    Savings Tips You Need to Try Now

    Saving money is one of the most detrimental life skills that you must master especially now that we’re facing financial difficulties brought by the pandemic. If you’re new to the art of saving money, the first day can come by as a breeze. However, you’ll be tempted to take these savings out for a shopping spree, a day out with friends or splurging yourself with some good food.

    When this happens, you’ll realize how saving money takes discipline and you must build the habit of saving, no matter how small the amount is. If you want to prepare for unexpected expenditures and cushion financial impacts that will inevitably happen down the road, here are some saving tips you need to try now.

    1. Prioritize Savings

    Make it a habit to set aside at least 10% of your paycheck as soon as you receive it. If possible, set the amount to a savings account you can’t easily access. Try opening a savings account that doesn’t include an ATM card so you can’t readily withdraw money from it. This will make you think twice about getting money since you need to line up to banks and talk about major inconvenience right there.

    1. Write Down Expenses

    You can use a writing pad for this or better yet, use your phone’s notepad. This should allow you to get a glimpse of how you’re spending and what items are you most likely to spend on. Whenever you reach out for your wallet or your card to pay, list everything down.

    1. Pay with Cash Only

    There are individuals who treat their debit cards like credit cards. Or worse, use their credit cards for a daily shopping spree. While it can be easier to pay using the flashy plastic cards, you’ll only find yourself spending than what’s necessary because cash is invisible to you. As much as possible, use only allotted cash for transactions and avoid withdrawing your savings.

    1. Use Cash Envelopes

    An extension of paying only with available cash is using the envelope method to limit expenditures. The excess cash you have (net of savings) will be divided into categories. In this manner, you can stay true to your budget without going over the limit.

    1. No-Spend Days

    This tip is probably the most difficult but you’ll discover that you are spending on items that aren’t really beneficial or necessary to your life. This allows you to be mindful of where you are throwing your money. To avoid overwhelming yourself, start with two days of no-spend days a week.

     

    Photos: Pexels.com