Storm Proofing Your Finances

Guidewell Financial Solutions Identifies Ways You Can Prepare for the Unexpected

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 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, 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 setbacks 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 considering the basic necessities of life and how they can change in the matter of a moment, we can better position ourselves for less than ideal 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 contribution of $20 per paycheck. Starting small is the first step to putting down strong roots and stormproofing your finances. (Guidewell Financial Solutions offers comprehensive counseling sessions that can recommend a monthly savings as part of your budget.)

Spend A Penny, Save A Fortune

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 as a way 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. Per the Federal Emergency Management Agency (FEMA) website, flood insurance is mandated by mortgage lenders for homes located in flood zones.  However, the law is infrequently enforced. 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. Most home insurance policies cover regular wind damage but not flooding. This means it is crucial to protect your family and your assets against the event of flooding.  It is also important to have renters’ insurance to protect your belongings as a renter.  Spending on insurance today might save you and your family a fortune tomorrow.

 Ultimately, more money in savings and proper insurance coverage of your assets is an investment itself because it typically offers more assurance in the event of a “storm”. Protecting your assets by being savvy and saving for an emergency makes you ready for a storm much like the tree with strong roots.

Guidewell Financial Solutions (also known as Consumer Credit Counseling Service of Maryland and Delaware) is an accredited 501(c)(3) nonprofit agency that helps stabilize communities by creating hope and promoting economic self-sufficiency to individuals and families through financial education and counseling. Maryland License #14-01 / Delaware License #07-01