Storm Proofing Your Finances


 

They say a tree with strong roots can withstand all storms. The old adage rings true in nature, but also for many people when it comes to safe-guarding personal finances. Guidewell Financial Solutions works to educate people about their finances, as well as potential risks all consumers face, so they are more prepared in the event of an unforeseen life-changing event. Two ways you can stormproof your finances include saving money regularly and investing in insurances that protect your interests. 

Get Out of Debt

The higher the debt, the more difficult it is to focus on future goals, like building up emergency-proof savings. Clearing debts can enhance your personal sense of security and enable you to overcome obstacles from your past which may have caused financial strain. Resolving debt can also prepare you for financial challenges that may come up with as an unexpected financial challenge, such as a storm or theft. At Guidewell Financial Solutions, our goal is for you to become debt free so that you can prosper, but also so you can remain confident when facing risks you don’t always see coming.  (Guidewell Financial Solutions offers a debt-management program to condense and to tackle your debts).

When You Save, You Prepare

People often consider their futures with high hopes when asking, “what will I do when I get out of debt?”, “how will I be spending the holidays?”, and “how can I become a millionaire?” But by thinking simply about the basic necessities of life and how they can change in the matter of a moment, we can better position ourselves for both normal and abnormal circumstances in health, career or family. Setting money aside from every earned paycheck can help you grow a savings that withstands these variations.

Guidewell Financial Solutions Counseling Manager, Ericka Blagmond recommends to her clients that they put 10 percent of their income in savings each month. If they are uncomfortable with committing that amount to savings monthly, she recommends a minimum personal contribution of $20 per paycheck. Starting small to accumulate a large savings is the first step to putting down strong roots and stormproofing your finances. (Guidewell Financial offers comprehensive counseling sessions that can recommend a monthly savings as part of your budget.)

Spend a Penny; Save A Fortune

Per an article by The Washington Post, only 17 percent of homeowners residing in the Houston area hit by Hurricane Harvey had current flood insurance. Investing in proper insurance today can protect your family’s assets against the event of storm damage. Homeowners insurance is often a requirement by most mortgage lenders to protect their assets, as well as yours, but it is still important to shop around and find the best policy for your situation and investment. Spending a few pennies on insurance today might save you and your family a fortune tomorrow.

Ultimately, more money in savings and proper insurance coverage of assets and investments typically offers more assurance when faced with less than ideal circumstance. When you protect your assets by being savvy and preparing for risks, you’re are storm proofing your finances like planting a tree with the strong roots.

 

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