Each time I meet with a person at Halcomb Singler who is there to talk financial stress and possible debt settlement or Chapter 7/Chapter 13 bankruptcy I go through their full financial picture with them so that I am able to give my opinion regarding how they should attempt to deal with their situation. After years of these meetings I feel that there are a few financial shortcomings that far, far too many hoosiers are overlooking so I wanted to dedicate this post to talking about them. And to make it as easy as possible….I am narrowing down to only 2 financial rules that I think everyone must live by.
1. Life Insurance. Unless you are independently wealthy there is no reason that you should forego life insurance. I don’t care how broke you are….you must afford life insurance. Just picture your children and widow being evicted from the home they can’t afford without your income less than a year after your death. If that doesn’t convince you to cancel junior’s iPhone or cut back to the minimum cable package so that you can afford a decent term life insurance policy then there is either something wrong with you or you don’t love your family.
Sorry if this seems harsh, but I just cannot understand how people who are struggling to make ends meet go out to dinner twice a week and go through the McDonald’s drive through each morning but then make excuses about how they can’t afford life insurance. This must be a priority and too many Hoosiers are screwing this up. You can’t afford not to have life insurance. Go buy some life insurance right now.
2. Not Saving For Retirement. Your 70 year-old selves are mad right now Hoosiers. Your 70-year old self who is still working and just barely able to pay the bills. Your 70-year old self who pictured retirement as taking an RV across America or traveling is not happy about the fact that he or she is trying to figure out how he or she will afford medication and is not even thinking about taking a vacation. Your 70-year old self knows he or she is never taking a vacation for the rest of his or her life. Your 70-year old self hates life because from the ages of 25 through 65 you thought it was more important to drive a new car every 2 years than to save enough for retirement. You thought that putting the 3% match into your company 401(k) would leave you with more than enough to retire on when you reached 65. Turns out that didn’t happen, but you retired at 65 anyway because that is the age people are supposed to retire.
Wake up people. You can’t count on anyone other than yourself to realize that you can’t afford everything you ever wanted. You have to deny yourself the ability to spend every last dollar you make so that when you do retire (which could happen a lot earlier than you think due to a host of reasons including unemployment and poor health) that you have enough money to get by without eating rice and beans on a daily basis. You have to care enough to look into the amount of money you will need in retirement or to reach out to a financial advisor to help you understand how much money you will need to retire. You have to be the one that reins in spending so that you are putting as much money back for retirement. If you don’t do this you will have no one but yourself to blame.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.