Three financial habits to make in the new year

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It is the start of the New Year, of course new year resolutions are still a hot topic. Far too often the list is focused on breaking bad habits, how about you focus on creating new good habits. In the immortal words of Aristotle, “We are what we repeatedly do. Excellence, then, is not an act, but a habit." Have alook at these three financial habits for 2016 from the Washington Family Magazine

 

1. Plan B is nice. Plans C and D are wise.

Savings is the most common contingency or plan B for unexpected expenses. Yet savings can only stretch so far. In fact, findings from Northwestern Mutual’s 2015 Planning & Progress Study revealed Americans’ top three financial fears are unplanned financial emergencies, insufficient savings to retire comfortably and unforeseen medical expenses.

Commit to educating yourself on available options to navigate life’s various curveballs. For example, Plan C — comprehensive financial planning can give you the tools to build a nest egg while enjoying a desired lifestyle. Plan D, or disability income insurance, can help protect your most valuable asset — your income — if an illness or injury prevents you from working.

2. Talk the talk.

Americans would rather talk about the birds and the bees than finances, according to Northwestern Mutual’s Planning and Progress Study. Four in 10 Americans have not spoken to anyone about retirement planning even though it’s a key concern.

Candid conversations are the foundation for a sound financial strategy. Resolve to have active, ongoing conversations about financial priorities, retirement goals and long-term care with significant others and family members.

3. Sow the seeds.

True financial security is not only about reducing financial vulnerability. You need to think about planting seeds to make your money grow while managing risk. A financial solution like Permanent Life Insurance (PLI) can do both — the death benefit is its primary purpose, but it also has living benefits. Your cash value is guaranteed to grow and never lose its value over time. You can use PLI to help cover emergency expenses (such as a temporary job loss), help fund retirement income, or assist with long-term care needs, all of which will reduce the death benefit.

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