With more and more Americans living longer, it only makes sense that we have more savings to help us in old age. However, research has found that baby boomers in particular not only have less wealth and savings put by, they also will face greater debts than those ten years older than them. With over 71 million baby boomers living in America, this is a staggering problem that’s looming on the horizon. With this in mind, here’s a simple guide to improve your financial situation.
A life settlement is an existing insurance policy that’s sold to a third party for a one-off payment. It’s usually more than the abandonment value but less than the payment at death. The third party then becomes the policyholder and continues to pay the premiums, so they receive the payment upon the insurer’s passing.
It can free up tax-free money if you can no longer manage your insurance coverage. This is a good way to generate income without debt, especially if you're cash-strapped. With life settlements in Illinois subject to state laws and regulations, it’s worth using an experienced company to guide you through the process. You’ll need to supply certain documentation along with your policy so that it can be verified before being purchased, but once this is done, your policy will be purchased, and you’ll have a tidy sum.
This can be hard if you’re unable to pay your bills, but it’s an important step to see what’s coming into your bank and leaving it. Once you know this, you’re able to see if you can cut costs. Perhaps purchasing cheaper brands, cooking meals with larger portions that can be frozen and eaten later in the week, or finding a cheaper utility provider could help you save some money.
You may find that no matter how frugal you are, there just isn’t enough coming into your home. If this is the case, you have a few options.
- Looking for a better paid job. If you’re working and still struggling, perhaps it’s time for you to see what’s out there and go for something that pays better or for something completely different. You never know how your fortunes could change just by changing your job.
- Finding a part-time job, perhaps over the weekend. Working one extra day could be all that you need to improve your financial situation.
- Having a side hustle. There are many people who do this to generate extra income in the privacy of their own home and in their own time.
Set Financial Goals
Once you have your budget organized, then try setting yourself financial goals. This could be to save an emergency fund or put away money for your retirement. Whatever your goal is, think about how much you need, by when and how you’re going to achieve it. So if, for example, you’re planning to save for an emergency fund, think about how much you need per month and aim to save for that amount. If you can cut back on going out or ordering food in, that money could go into that fund and once you know how much you can save by cutting back, you’ll have your ‘when’.
Make sure your goals are realistic because you’re less likely to stick to your plan if your goal appears unreasonable.
If your credit rating is bad, it can affect your ability to get a mortgage, possibly employment as well as renting a potential home, as more and more people are checking credit ratings to see if individuals regularly pay their bills and other monthly obligations.
One late payment can put a dent in your credit rating, so you want to ensure that you meet every payment every single time it’s due. There are apps that can notify you of when payments are due. Alternatively, you can set up notifications either on your phone’s calendar or alarm.
If you ever find it difficult to make payments, contact your creditor in the first instance. Don’t shy away from them because they may be able to help you. For instance, they could reduce your monthly repayments for a certain period of time to give you time to sort out your finances.
If this isn’t an option, the next thing you could try is enlisting the assistance of a debt consolidation company. They’ll contact each of your creditors, with a view of reducing your payments and collating all of them into one payment, which you pay them, and they then transfer this onto your creditors.
If your financial situation is not what you’d like, then you’re not alone. Many of us are in or have been in a financial mess. However, if you’ve read this article, then you want to do something about it. This is the first step on a long journey, but a journey that you need to take for your peace of mind and financial security.