7 Financial Moves You Can't Miss

Throughout our lives, we have to make certain financial decisions to ensure our current and future stability. It’s hard to plan for every single thing that happens in life, but you can make a few great decisions that cover the major bases. Here are seven financial moves you can’t afford to miss.

Having a steady source of income.

Having a job or some other source of income is a basic requirement of being an adult. Of course, there may be an exception if you’re married and your spouse’s income is enough to support your family.

Having the right kinds of insurance.

We need various types of insurance to cover the cost of certain incidents. For example, auto insurance covers all or part of the cost of repairing vehicle damages. You also need health, dental, vision, home or renters, life, and disability insurances to make sure you’re insured in emergency situations. Thankfully, many of these will be offered through your employer saving you the time of shopping around for an insurer.

Having an emergency fund.

An emergency fund will be essential when you have to cover unexpected expenses out of pocket. The ideal emergency fund is at least six months of living expenses. It would cover you for that amount of time if you lost your job. Of course, it takes time to build up a sizable emergency fund, so the earlier you start contributing to it, the better.

Making a conscious decision to rent or buy.

Housing is one of the basic necessities of life. We have two basic choices: renting or buying a home. There are pros and cons to each so no matter which you choose, make sure it’s a decision you’ve made because you think it’s best for your financial well being.

Paying off your debt.

It’s a good and bad thing we live in a society that allows us to borrow money for the things we can’t afford. The ability to borrow means we can get a house or car without having to save up the money. But some types of consumer debt are expensive and make it hard to reach financial goals. You’ll improve your financial life by paying off your your debt, especially credit card and student loan debt.

Building a good credit score.

Many businesses use credit make decisions. Having good credit is essential in today’s society. A good credit score comes from borrowing responsibly and paying all your monthly bills on time. Once you’ve built a good credit score through months, even years, of on-time payments, make sure you protect your score by keeping up with the habits you used to build it.

Saving for retirement.

You won’t be able to work forever. At some point, you’ll want to leave the workforce. At that time, you’ll still need a reliable source of income to pay your monthly bills and expenses. We must prepare for retirement during our working years by setting aside a portion of our funds for the time that we’ll stop working for good.