Now, you know I’m always talking about living the frugal life and I’m always teaching you ways to eliminate expenses and save more money. However, that’s not all frugal living is about. If you want to secure your financial future for yourself and your family, you have to make sure that you’re laying down a solid financial foundation. That way, you’ll always be ready for all of the surprises that life will throw your way over time. Below, I’m going to list out things you will need in order to obtain financial security.
#1. A Checking Account
This is a basic thing that you are absolutely going to need. Believe it or not, I know people that don’t even have a checking account. To me, that’s just crazy, because I’ve had one ever since I was able to open one up on my own. A checking account will provide you with a place where you can properly manage your money and keep an eye on it. A checking account is an easy way to keep track or your money and know where it’s going.
I would highly suggest that you find a bank that offers a free checking account. Keep your eyes open and you will find one that’s willing to do this. If not, you could always go to a credit union.
#2. A Debit Card
It’s important that you request a debit card through the bank you have an account with. They are much more convenient and cheaper than checks. Also, a debit card gives you more options. Just make sure your debit card is either a Visa or a Mastercard, because those are the two cards that widely accepted.
#3. Health Insurance
If you want to be financially stable, you need to get health insurance. As a matter of fact, it’s now a law that you need to sign up for health insurance. Unfortunately, some people still refuse to do this and there’s absolutely no reason to. Accidents and illnesses happen in life and unless you’re a millionaire and can afford your own medical bills, you should definitely get yourself some health insurance. I know plenty of people that had to visit the emergency room for a few hours and came out with a $5,000 medical bill. I highly advise you get health insurance.
#4. Homeowner’s Insurance
If you don’t own a home, you need to get renter’s insurance. Just remember; what would happen if your house or apartment were to burn to the ground? Would you be homeless? Would you be able to replace all of the stuff you had? Homeowner and renter insurance is cheap, but it’s definitely worth it just in case.
#5. A Retirement Fund
It’s extremely important that you start putting money aside as soon as possible for your own retirement. I can tell you right now that social security isn’t going to cut it for you when you reach the age of retirement. People drawing social security right now are barely getting more a month than people who work a minimum wage job.