Two Steps Of Financial Advantage For Young People
Rugged individualism is a concept that is forgotten in today's society. We live in the age of irresponsibility, and that whatever the case, if I cannot pay for it, someone else should. What this leads to is the someone elses are paying, and paying heavily, whether in taxation or insurance premiums.
We all have our "if I could do it over" moments, and so here is one of mine. I have begun giving this advice to any young person who is between 18 and 21 years of age and who currently have no children. To attempt this after children could possibly put a strain on your financial resources. I believe this advice to be so important, that I am publishing it here for anyone who can access this website to have, free of charge.
This advice deals primarily to aversion to financial risks due to catastrophic occurrences. Most folks refer to this as insurance advice.
1. Get a life insurance policy.
Many young people do not think about death or dying very much. I know I did not. But the fact of the matter is that the younger that you are, the less expensive life insurance is. I recommend that you obtain a whole life policy with a term life rider. Ordinarily, rates are locked for 20 years, so if you are 18-20 years old, you will still be relatively young when you can lock in rates again when it is time to re-up. A whole life policy builds cash value, which may come in handy 20 years down the road when you are trying to put children through college or pay off a mortgage. The term life portion only is paid if you die, so the whole life portion should be decided in such a way that it does not impact significantly the rate of the policy. Beneficiaries can always be changed as time goes along.
2. Get a Health Savings Account.
Health insurance for young people is really not that beneficial. Most young people do not go to the doctor very often. Health insurance is socialism in practice, since the premiums that you pay are going to fund someone else's medical expenses. Once in this game, it is hard to get out. So do not get in to begin with. Open a Health Savings Account. You can fund tax-free dollars into an account that belongs to you that you can pay your medical bills from. You must obtain an approved health plan with a high deductible. Higher deductibles keep your premiums lower, and you can use your HSA to pay your deductible. Doing this while you are young keeps more money going toward the medical bills of you and your family rather than to other people. And with traditional health insurance, premiums normally go up and services go down.
These two steps will be positive financial moves that you can make easily and affordably at a young age that will help to insure your independence. Heed the advice. No one is responsible to take care of you but you.
We all have our "if I could do it over" moments, and so here is one of mine. I have begun giving this advice to any young person who is between 18 and 21 years of age and who currently have no children. To attempt this after children could possibly put a strain on your financial resources. I believe this advice to be so important, that I am publishing it here for anyone who can access this website to have, free of charge.
This advice deals primarily to aversion to financial risks due to catastrophic occurrences. Most folks refer to this as insurance advice.
1. Get a life insurance policy.
Many young people do not think about death or dying very much. I know I did not. But the fact of the matter is that the younger that you are, the less expensive life insurance is. I recommend that you obtain a whole life policy with a term life rider. Ordinarily, rates are locked for 20 years, so if you are 18-20 years old, you will still be relatively young when you can lock in rates again when it is time to re-up. A whole life policy builds cash value, which may come in handy 20 years down the road when you are trying to put children through college or pay off a mortgage. The term life portion only is paid if you die, so the whole life portion should be decided in such a way that it does not impact significantly the rate of the policy. Beneficiaries can always be changed as time goes along.
2. Get a Health Savings Account.
Health insurance for young people is really not that beneficial. Most young people do not go to the doctor very often. Health insurance is socialism in practice, since the premiums that you pay are going to fund someone else's medical expenses. Once in this game, it is hard to get out. So do not get in to begin with. Open a Health Savings Account. You can fund tax-free dollars into an account that belongs to you that you can pay your medical bills from. You must obtain an approved health plan with a high deductible. Higher deductibles keep your premiums lower, and you can use your HSA to pay your deductible. Doing this while you are young keeps more money going toward the medical bills of you and your family rather than to other people. And with traditional health insurance, premiums normally go up and services go down.
These two steps will be positive financial moves that you can make easily and affordably at a young age that will help to insure your independence. Heed the advice. No one is responsible to take care of you but you.
posted by Badbeans | 4:10 PM
1 Comments:
Good post, Badbeans, & sound advice.
--Wes
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