As we all learned in 2020, the world is unpredictable. Modern Woodmen Representative Morgan Lavender discusses three strategies that can help individuals manage the financial risks of everyday life, to steel yourself against the unexpected.
Strategy One: Understand your finances. It’s important to start with a reasonable assessment of your unique financial situation. Do you have a spending plan (budget) and is it working for you? How much would an emergency (big or small) affect your financial standing? A Modern Woodmen representative can help you review your incoming and outgoing funds and give you an honest assessment. From there, you can work together to maintain or adjust your current plan.
Tip: Financial literacy does not have to come from trial and error. Modern Woodmen’s free MoneyMasters program teaches students of all ages how to develop smart financial habits. To learn more about the K-12 program (for schools, home schools and youth groups) or workshops for adults, contact a local representative or visit modernwoodmen.org/moneymasters.
Strategy Two: Build an emergency fund. Emergencies come in all sizes, and they throw everything off balance. The best financial strategy is to plan ahead whenever possible, whether you are facing a car repair or sudden unemployment, planning ahead helps. If you do not have extra funds to set aside for emergency savings right now, take another look at your budget. Are there any small expenses you can cut? Even $20 a month stashed into an emergency fund will build over time, and it could be life-changing if (or when) it’s needed.
Tip: When disaster strikes, Modern Woodmen can help you keep your life insurance coverage in place when it is most crucial. With its Fraternal Aid Fund, members experiencing a financial hardship due to a natural disaster or medical emergency can apply to have their life insurance premiums covered for a limited time.
Strategy Three: Protect your family with life insurance. Life insurance is the foundation of your financial plan. It protects against the absolute worst-case scenario: an unexpected death. In general, life insurance is easier (and cheaper) to get the younger and healthier you are, so it is important to not wait to add or increase coverage.
Tip: In addition to safeguarding your family, permanent life insurance offers living benefits for you. It builds cash value, which you could borrow from in case of emergency.
Submitted by Morgan Lavender