If you’re feeling stressed about money because of the coronavirus pandemic and shutdown, you’re not alone.
72% of Americans feel stressed about money in the past month a new poll by the American Psychological Association. It doesn’t help that 35% of Americans can’t even last a month on their savings, according to the July 2020 Retirement Confidence Index.
How did we get here … and what can you do about it?
One of the many aspects of conventional financial “wisdom” that kill wealth is recommending that you have an emergency fund that corresponds to 3 to 6 months of your household expenses.
Almost every financial expert gives this advice, even although millions were from Americans unemployed for more than a year in the last major recession!
Here’s a three-step plan for a financially stress-free life …
Step 1: Work towards a safe and liquid emergency fund 2 years Of your household expenses
If there is one thing you can Rely on life that it is the unexpected become happen. And these curve balls have a perverse way of coming at the worst times.
A sizeable safe and liquid rainy day fund offers you many options and benefits, including:
- A pillow if you lose your job or cut wages
- You can avoid high-interest financing costs by not having to write unexpected expenses on a debit card
- You have a feeling of control – even if your worst fears never arise, the feeling of being in control is invaluable
- You also have the opportunity to take advantage of opportunities – just as emergency costs arise, when we least expect them, so do opportunities
Step 2: Build your emergency savings in a financial instrument that offers flexibility and guaranteed competitive growth
Yes, I understand – savings and money market accounts and CDs pay so little interest that you practically need a magnifying glass to see them. So it’s not very motivating to keep a lot of money there.
However, your money must “live” somewhere – a bank or an investment account, in currencies or goods, or under your mattress.
Here’s why a bank on yourself policy with high cash value and dividend payouts is just right for life best Place to live for your money:
- Competitive, guaranteed growth everyone Year – even if the markets fill up
- You can take out a loan against your cash value any Time and for any Reason – No questions asked! (Read our consumer policy loan guide.)
- You don’t have the constraints or constraints you would have to jump through to get a 401 (k) loan – this is usually a 13-step process, although it’s supposed to be your money!
- You don’t have to pay back your loans … but if you do, you’ll have more money to access with No taxes due on it – during your retirement
- You can use your policy’s equity as you wish, and the policy can continue to grow as if you hadn’t touched it. if Your policy comes from a handful of companies that offer this feature. (A Bank On Yourself Professional knows which companies are the financially strongest and offers policies with all the features necessary to maximize the value of this concept.)
- Your safe and liquid emergency fund also serves as a pension – and you can rest assured that this strategy works never has had a lost year in its 160-year history and is supported by a multi-layered safety network
Key concept: You have a substantial amount of cash that is safe, liquid, and available to you Not Take away one of your options – it only gives you More Options.
Step 3: The best time to build your safe and fluid savings is today – – Even if you can’t see how it can happen
Every crisis offers us opportunities. The pandemic has led to an increase in the savings rate, most of which is in accounts that earn little to nothing.
And the shutdown has made it clear to many of us that we can do well without some of the things we once considered “necessities”.
Right now – In front We’re losing the lessons of the pandemic – it’s time to double up and take the necessary steps to take control of your finances and prepare for a financially stress-free future.
Starting Bank On Yourself is easier than you might think
Request a free, non-binding analysis if you have not already done so. You will receive a referral to a Bank On Yourself Professional with advanced training on this concept that can answer all of your questions and help you restructure your finances to free up more money and start a tailored program to help you achieve your finances goals without taking any unnecessary risks.
Please do not postpone! Do it todaywhile you think about it:
Note: We are not the author of this content. For the Authentic and complete version,
Check its Original Source