Category Archives: Insurance

Protection, Home, Auto, Health, Disability, Life, Personal Umbrella

How Is Your Spare Tire?

A flat tire on a Mercury Villager van.

A flat tire on a Mercury Villager van. (Photo credit: Wikipedia)

If we carry around a spare tire in the back of the car, we’re covered in case of a flat, right? Not always.

A few years back, I had the privilege of experiencing a flat tire at midnight on a dark, muddy country road. I thought, “No problem, I’ll just pull out the spare.” It was also flat. The spare tire was placed in that vehicle when it was new and had never been used. The assumption was that it would do the job when needed. But what changed? Time.

As time went by, the spare had slowly lost its air. What “spares” do you currently have that are no longer doing the job? Spares don’t last forever. They need to be maintained. Below are a few things I suggest you look at this week:

  1. Life Insurance: Does it still match your needs? Have you added a mortgage or had children since you first obtained that plan? Are the correct beneficiaries listed?
  2. Homeowner Insurance: Do you have the proper coverage?
  3. Your Will: Again, is it up to date? If something happens to you, what will happen to your kids?
  4. Emergency Fund: Do you have one? If you don’t, will you pull out the credit card and incur additional debt if something happens? Are you prepared for an emergency?

I recommend that you do one more thing- go out to your car and check your spare tire to make sure you are prepared should you have a flat. Don’t procrastinate!!

You never know when you might end up with a flat tire at midnight on a dark, muddy country road.

Until next time . . .

Bryan Cooper
My Financial Life Coach LLC
Financial Life Coach
“Helping You Get Your Financial House In Order”
Delaware, OH 43015

Visit us at http://www.MyFinancialLifeCoach.net

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Filed under Auto, Emergency Fund, Family, Insurance, Life, Money, Personal Finance, Uncategorized

Sara’s Journey Through Balance Up – Days 25-27

Day 25—-Get Smart

(Posting Sara’s (Single Mom’s Ask Sara) journey through the Balance Up program)

Remember SMART? This is important, so we’re going to go over it one more time.

S–Specific
M–Measurable
A–Attainable
R–Relevant
T–Timebound

In order to reach the priorities you set, you need a logical (SMART) approach. So what if you find you can’t apply the SMART principles to your goals? No problem. Not being able to apply the SMART elements to your goals, is just a signal that you need to change the goal, or eliminate it in favor of one of the goals you initially removed from your list.

Today’s short lesson gives you time to go back and review some previous lessons. Because it takes a few months to get a feel for managing your money in a new way, reviewing the lessons on working with the paycheck allocation and the “envelopes” are a great idea.

Day 26–Do you have an emergency living expense fund?

Who doesn’t want one of these? Who has one? I have a little one. Because I am focused on eliminating debt, I don’t have a big emergency fund. Both Bryan, and my long term financial planning guy feel this is the next step after you demo the debt.

All I know is that I would love to feel covered in an emergency or a job loss. After having many job losses with no emergency fund, I can say on some pretty good authority that this does not feel good at all!

Bryan suggests you sock away 3 to 6 months of your living expenses, and if you live in a location with greater than 8% unemployment (that would pretty much be the USA these days) you should consider a nest egg of 5-8 months. Sound impossible? It sure did to me.

However, ever the financial ray of hope, Bryan explains that with the joys of compound interest you can truly make this happen.

Needing new tires doesn't need to cause a financial emergency.

Bryan then goes on to explain Sinking Fund Purchases or SFPs (my acronym). You create an SFP to put money away for things you will want or need in the future. Novel concept, huh?

Here’s one of Bryan’s examples. Say you know you will need tires for the car, and those tires cost $400. (I remember when you could get 4 tires for 100 bucks!)

If you need those tires in 6 months, you need to save $67/month.

If you need them in 12 months, that would be $37/month, and if you can wait 24 months, you only need to set aside $17/month.

However, if you buy them at the last minute and charge them, paying over that 24 months, you will pay an extra $111.88 (at 24.9% interest).

Of course it makes far more sense to save for the tires, but we don’t tend to do this. It may take a while to get your thinking and your finances turned around so that you are able to proactively put money away for these purchases, but that’s OK. If you think about it…if you can afford to make the payment after you buy the tires, you can likely make the smaller set aside payment before you buy the tires. Even if you don’t get to the full amount before you have to make your major purchase, in money, every little bit helps.

Day 27: Insurance!

Insurance. We hate to pay for it, we are so thankful to have it when we need it, and we really don’t quite understand it.

Today Bryan shares the ins, outs, and definitions of all those different insurances we need to know about. You will definitely want to print this handout and keep it with all your important paperwork!

So what kind of insurance are we talking about?

Here’s the list:

Property Insurance

Auto Insurance

Personal Umbrella

Life Insurance

Disability Insurance

Identity Theft*

Health Insurance*

Long-term Care*

Just like an emergency fund, insurance saves your behind in a crisis. The only difference is that while your emergency fund is there for day-to-day shortfalls, insurance covers the catastrophic events that could wipe you out financially for a long, long time.

Here are Bryan’s 7 General Principles of Insurance:

1. Understand the purpose of insurance.

2. Know your needs and your coverage.

3. Carry adequate insurance.

4. Understand the real cost of deductibles.

5. Watch your credit score.

6. Avoid filing too many claims.

7. Shop around.


With Bryan’s definitions, coverage details, and tips for decreasing your insurance premiums, you will most certainly have the protection you need should Mr. Mayhem come to visit you!

*Not included in today’s lesson. 

– Sara

Interested in learning more about Balance Up? 32 online lessons taken over a 42 day period for only $29.99.

Bryan Cooper

My Financial Life Coach, LLC

Delaware, Ohio

www.MyFinancialLifeCoach.net

My Financial Life Coach is a provider of financial education, coaching, web-based training,

and seminars for individuals, businesses, and non-profits.

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Filed under Budget, Finance, Goal Setting, Goals, Health, household budget, Insurance, Life Balance, Money, Personal Finance, Priorities, Time, Time Management

So Guys, How is Your Spare Tire?

So Guys, How is Your Spare Tire?

No, I’m not talking about the one you start seeing as you approach your mid-thirties; I’m talking about the one in your car. I know this is a money blog, but allow me to explain.

I had the privilege of experiencing a flat tire at midnight on a dark, muddy country road, only to learn my spare tire was flat. The spare tire was placed in that vehicle when it was new and had never been used. The assumption was that it would do the job when needed. But what changed? Time.

Time went by and the spare slowly lost its air. What “spares” do you currently have that are no longer doing the job? Below are a few things I suggest you look at this week:

  1. Is your life insurance still adequate? Life brings changes, we add mortgages, we have children, etc. Also, are the named beneficiaries still accurate?
  2. How about your auto and homeowner insurance? Are you adequately insured?
  3. What about your will? Is it updated? Who will care for your kids should something happen to you?
  4. Do you have an emergency fund? Or are you going to pull out the credit card and go deeper in debt if you have an emergency?

I recommend that you do one more thing- check your spare tire to make sure you are prepared should you have a flat. Don’t procrastinate!!

You never know when you might end up with a flat tire at midnight on a dark, muddy country road.

Until next time . . .

Bryan Cooper
My Financial Life Coach LLC
Financial Life Coach
Dave Ramsey Certified
“Helping You Get Your Financial House In Order”
Delaware, OH 43015

Visit us at http://www.MyFinancialLifeCoach.net

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Filed under Auto, Change, Children, Emergency Fund, Finance, Financial, Inspiration, Insurance, Personal Finance, Procrastination, Thoughts, Time, Uncategorized