How to Build a Stable Financial Foundation for Your Future

How to Build a Stable Financial Foundation for Your Future

2020 was a killer year when it came to personal finance for many people, and not in a good way. So far, 2021 seems to be carrying on that trend, and with only a glimmer of light at the end of the covid tunnel, it doesn’t look like that’s going to be changing soon. This leaves many people wondering how they could possibly build a stable financial foundation for their future.

Stay Out of Debt

One of the most important things you can do to protect yourself financially and build a stable foundation for future finances is to stay out of debt. This is easier said than done, especially in an economy that makes it so easy to go into debt in the first place. Getting approved for a credit card is far from impossible, even for those who don’t have good credit scores if they’re willing to compromise on their APR. Debt has a solid negative impact on your net worth, so even if it’s tempting, it’s best to avoid it as much as possible.

Own Assets

While debt hurts your net worth, owning assets helps it. It’s important to keep in mind that when it comes to finance, the definition of an asset is something that is producing income, whereas a liability is something that costs you money. Owning assets should help you increase your net worth overall. One of the best ways to build wealth is by owning real estate. You can then rent out the real estate you own and make an income off of the monthly rent paid by your tenants.


If the recent stock market shenanigans have you worried about investing your money there, it’s understandable. That said, you don’t have to let that discourage you from investing. Investing your money in the stock market can still be a good way to build a stable financial foundation for your future. You just have to be smart about it. Look carefully at the companies you’re considering investing in. What is their history like? Where are they likely to be in years to come? Is it a company you would actually want to have ownership in? The stock market isn’t meant to be a get-rich-quick scheme. It’s meant to build wealth over time by way of dividends or selling shares of stock. The more research you do about where you invest your money, the more likely it is that you’ll make sound investing decisions.

Given the current economic climate, it’s understandable to wonder and worry about how you could possibly build a stable foundation for your financial future. Start by staying out of debt and then build wealth by owning assets and making smart investments. It will take time and effort, but you can build a decent financial future for yourself.

Read this next: How to Reduce Your Monthly Car Expenses

How to Reduce the Financial Burden Associated with Car Accidents

How to Reduce the Financial Burden Associated with Car Accidents

People don’t typically plan to get into car accidents, but they still happen, often at an alarming rate. Car accidents have a way of throwing multiple wrenches into people’s lives. Many of those wrenches have significant financial burdens that come along with them. They can be incredibly discouraging to deal with, so it’s a good idea to take steps to reduce the financial burden associated with them.

Take a Closer Look At Your Insurance

Do you know exactly what your car insurance covers? How much coverage do you have for medical expenses? What if the other driver doesn’t have insurance? Making sure you have enough insurance coverage can make a huge difference in the financial burden you’ll be facing after a car accident. It’s not uncommon to owe more than your car is worth while paying it off. In this case, having a gap insurance policy can keep you from still having to pay off a loan for a car you no longer have.

Have an Emergency Savings Fund

Even if you have really good insurance, you may still be left to foot the bill for expenses your insurance won’t cover. Emergency savings funds are meant to help you out when you experience emergencies, which a car accident can qualify as. The typical recommendation for emergency savings funds is to save up 3-6 months’ worth of expenses. The average bodily injury claim is about $15,000, but can easily be more, especially if you’re hospitalized. A healthy emergency savings fund may not be enough to cover all the expenses, but it can certainly make them easier to deal with.

Consider Retaining an Attorney

If you have good insurance, it’s likely to cover a lot of the costs associated with the accident. The hope is that any insurance company you deal with is upstanding and will pay out a fair settlement, but that isn’t always the case. If you aren’t sure you’re getting the help you should be, look for a car accident attorney to help you. Do some research so you know what to look for in an attorney. Car accident attorneys often offer free consultations and work on a contingency basis, so if they don’t win your case, you don’t pay them anything. They usually take a percentage of your settlement, leaving you with the rest to cover your financial obligations.

Car accidents are rarely a good thing, but there are things you can do to reduce the financial burden associated with them. Start by taking a closer look at your insurance and make sure you have the coverage you need. If you haven’t built up an emergency savings fund, start now to give yourself a cushion to work with. After the accident, carefully consider retaining an attorney. These actions will help you put yourself in the best position to deal with the financial aftermath of a car accident.

Read this next: How to Reduce Your Monthly Car Expenses

How to Reduce Your Monthly Car Expenses

How to Reduce Your Monthly Car Expenses

Depending on where you live, owning a car is less of a luxury and more of a necessity. It’s certainly a lot easier to transport groceries and people with a car. Cars are something of a money sink though, and especially during the current economic difficulties, it makes sense to try to reduce your monthly expenses. Fortunately, there are some things you can do to pay less each month on your car.

Shop Around

Drivers are required to carry a minimum amount of car insurance, and at some point you’re probably going to have to have repairs or service done on your vehicle. These costs are pretty much guaranteed expenses, but that doesn’t mean that the price you have to pay has been set. You can often find better deals and pricing by shopping around. Feel free to let insurance providers or mechanics know if you’ve found a better price elsewhere. See if they can match or beat it to get the best pricing possible for your needs.

Offset Your Costs

Costs are an inevitable part of car ownership, but there are things you can do to help offset the cost. Consider wrapping your vehicle. This involves the application of a vinyl cover to the surface of your car. Car wrapping is safe to apply and easy to remove. It can help protect your car from cosmetic damage such as fading due to sun exposure, paint scratches, or from projected stones. Given how much a quality paint job can cost, taking steps to protect your car’s paint can help reduce the amount you would otherwise be spending on your vehicle.

Boost Your Gas Mileage

If you have a car, there’s a good chance you’re probably paying for gas. How much you pay for gas depends on multiple factors, such as the quality of gas you should use, the weight of your car, and how you drive. The easiest way to reduce how much you’re spending on gas is to change your driving habits. Pay attention to the road ahead of you to avoid unnecessary braking and acceleration. On a similar note, be gentle with your braking and accelerations to protect your fuel economy. Try to limit any idling you do. Both your gas mileage and then environment will thank you.

If you’re looking for ways to reduce your monthly car expenses, there are some things you can do. Shop around when you need car-related services, find ways to offset your costs, and use driving practices that can boost your gas mileage. Both your wallet and your car will thank you.

Read this next: Weird Things You May Notice in Your Home and Why They Happen

How to Recognize a Fraudulent Home Improvement Company

How to Recognize a Fraudulent Home Improvement Company

When you are looking into hiring a home improvement company, you’ll need to learn to spot the signs of fraud. Nobody wants to hire a company and have their money stolen and time wasted. You’ll need to look at their reviews, understand their methods, and ask for references if you want to spot the fraud.

Look at Their Reviews

Look at the company’s reviews. If they don’t have reviews, you should avoid them. Reviews can help you to understand what a company stands for and if they are trustworthy. If their reviews are positive and transparent, then you should feel confident hiring them. You should also look to see if the business is responding to reviews. If they have a lot of negative reviews and aren’t responding or trying to rectify the situation, then you might not want to trust the business. That also goes for positive reviews too. If a business is active in responding, then you can feel confident in the trust you’ve put into the business.

Understand Their Methods

Try to understand the company’s methods and spot when something isn’t right. A fraudulent paving company may use fewer materials, leaving your driveway poorly done. Understanding the methods of a company will help you to quickly recognize if it’s a scam or not. If they are unorganized and doing things that don’t make sense, then you should have a pretty good idea that it’s a scam. If you’ve done your research into a company, then you’ll be able to trust them.

Ask for References

You should ask for references. References can help you to understand if a home improvement company is fraudulent. Never hire a company without speaking to someone who’s used their services in the past. Homeowners should ask past customer’s detailed questions about a home improvement company’s work, including the projected and actual project timeline, as well as the final cost. If the company is in the middle of another job, ask if you can check out their work yourself. If they refuse to furnish the names and contact information of previous clients, it may be best to seek a new option.

It can be hard to sort the scams from the real companies, but there are several things you can do to spot the fraudulent companies. You can look at their reviews, understand their methods, and ask for references. This will help you to find a company you can trust.

Read this next: How to Get the Most Out of Your Health Insurance

Why You Should Be Wary Before Taking Out a Loan

Why You Should Be Wary Before Taking Out a Loan

Taking out a loan can be a helpful tool, but it also comes with risks, so it is a good idea to be careful before entering into any kind of loan agreement. In many cases, it is more effective and better for your finances to save for a purchase rather than taking out a loan, but if you do decide to take out a loan (especially for a big purchase), you should think carefully and prepare before making the decision.

High Interest Rates

The first problem you can run into with a loan is high interest rates. Especially if you have never taken out a loan before and don’t have much credit, a high interest rate can set you back and make your life more complicated. High interest rates also increase the total cost of your purchase meaning that you will end up spending more over time than you would if you bought the item out right in cash. In some cases, like for houses or cars, a loan can be a necessary expense, and you will have opportunities to decrease your interest rate over time, but for other things it is better to avoid paying interest overall.

Credit Risks

When you take out a loan and are unable to make consistent payments, it can present risks to your credit that can make future purchases more difficult and have immediate consequences in your life. If you default on a loan, you may end up having your belongings repossessed which can be a big problem. Car repossession that results from a default can harm your credit score. It is important to keep that in mind as you decide whether or not to take out a loan because it can have long term effects on your credit and financial stability and even your car insurance.

Spending Outside Your Means

Taking out a loan can also cause problems if you take out a loan that is beyond your ability to pay it back. If you use a loan to spend beyond your means, you can find yourself buried in debt that you are unable to pay back and dealing with those consequences well into the future. When you decide to take out a loan, it is essential that you know that you will be able to make the payments each month without stretching your budget too thin.

Choosing to get a loan is a big decision. Make sure that you make it with the appropriate understanding of the situation and its potential pitfalls. This way, you can make sure that you make the best decision about your money.

Read this next: How to Get the Most Out of Your Health Insurance