How to learn more about finances and saving

amother

Sun, Dec 10 2023, 8:08 pm

amother Peru wrote:

You don't get the money back. IYH you'll never need it. You're paying to get money if something c"v something happens but if nothing happens the insurance company keeps the money. Same way that people pay for homeowners insurance every month or car insurance. It's unfortunate that you're losing money but it still makes more financial sense that not having coverage.

It's not wasted. You are protecting your family. It's like saying you wasted money on car seats because your child was never in a car accident.

Thats a great mashal!

mig100

Wed, Feb 07 2024, 7:37 pm

amother Ginger wrote:

I’m so happy you posted!

You can be getting 5% interest annually on your savings by putting them in a high yield savings account. I’m getting that at CIT bank - https://www.cit.com/cit-bank/bank/savings. The money is safe, it is FDIC insured meaning up to 250k in each account is insured by the government and will be paid back to you even in the rare event that the bank collapses. There are other high yield savings banks, you can google if you want to look for higher rates than 5% but I doubt you can find.

Life insurance is a priority as you have a child. The sooner you get it, the cheaper it will be. Please get it for you and your husband. I’m paying $70 monthly for 1 million dollar coverage for myself and my husband for the next twenty years. We plan to add additional policies each time we have another kid so that we’ll be covered for the next 20 years from when the child is born. The goal being that if the worst happens, we will have the life insurance coverage to pay for the child’s bills while they are still dependent on us which we estimate will be 20 years from when they’re born. After that they can get a job and take care of themselves.

Please do not get whole life insurance. It’s the way life insurance agents get paid the most so they push for it but most people would be better off with term policies and investing the rest of their money on their own.

ETA just want to clarify that I’m paying $35 for a life insurance policy for myself and $35 for a policy for my husband. Both are 1mill coverage for 20 years.

That sounds like a good life insurance policy. Can u explain how to get it

Eta. I see u posted further down

amother

Lightgray

Wed, Feb 07 2024, 7:47 pm

You have to start with the basics.

I found Dave Ramsey books and podcasts very helpful in the beginning. Just getting out of debt, learning how / how much to save, investing goals etc.

And then I listened to Erika taught me, she has an amazingly clear podcast explaining index funds for beginners.

When I got a bit more savvy, started listening to Boglehead podcast and reading Gelt Guide by Eli Fried

amother

Mintgreen

Wed, Feb 07 2024, 8:42 pm

amother OP wrote:

I saw my father today and mentioned the whole/term and he said I should do the whole term since then Id be able to take it out eventually and not have it "wasted"- but how much of a price difference would I be paying each month if I do whole vs. term?

Oh no! Don't do it! It is much smarter to take that difference in money (it is many times more to do whole versus term), and then invest in the stock market. Whole life is a terrible investment for most people.