Managing your Money for Beginners
Resources for learning how to manage your money to fulfill your goals
Expecting the Unexpected
Things happen all the time that are out of our control. You could lose your job. Your home is damaged in a hurricane or winter storm. You can get severely injured or killed in an accident.
There are a several of things you can do to protect you and your loved ones so that financial burden of these emergencies doesn't cripple you financially:
- Have an emergency fund in an FDIC insured bank (or NCUA insured if for a credit union)
- Check the Saving your Money tab for more information
- Choosing insurance that's right for you and your family
- This includes life insurance, health insurance, renters insurance etc
- Making a will or healthcare directive
- Safeguarding yourself against fraud
The best way to recover from an emergency is to prepare before it happens.
- Disaster Checklist | Consumerfinance.govA checklist of information you should have on hand before facing an emergency.
- An essential guide to building an emergency fund | CFPBA quick guide on how to put money aside for unplanned expenses.
- Preparing, recovering, and rebuilding after disasters and emergencies | Consumerfinance.govA guide to handling your finances if you are preparing for, recovering from or rebuilding after a hurricane, tornado, earthquake, or other disaster.
Choosing the Right Insurance for You and Your Family
Many people get health insurance through their employer so insurance choices are little easier for them. If you work as a contractor, are out of work, or don't like your employer's health coverage, you will have to purchase health insurance through a healthcare marketplace.
Besides the tax implications of not purchasing insurance, an unexpected illness or injury can be costly.
- Massachusetts Health ConnectorThe Health Connector offers health and dental coverage and provides tools for Massachusetts residents and small businesses with up to 50 employees to find cost savings and plans.
- 3 things to know about coronavirus disease and your Marketplace coverage | Healthcare.govArticle about your Marketplace health plan works when it comes to coronavirus
- Your Step-by-Step Guide to Choosing a Health Insurance Plan | Nerd WalletA guide on how to pick the health insurance that's right for your and your family
Burst pipes. Fires. Storm damage. These are among the many challenges you can face when being a renter or homeowner. If not properly insured, bouncing back from incidents like these can be costly.
Before you purchase insurance, it's a good idea to go room by room and take an inventory of your possessions. You many think you don't have much to cover, but if you look around your for bedroom, for example, you'll realize that you own more than you think:
- Your bed and dresser. Those are costly items to replace
- All of your clothes. Think of how much it would cost to replace you whole wardrobe
- Do you have any electronics like a TV, tablet or computer
The costs start adding up, and that's just in a bedroom.
- Home Insurance | Mass.govLinks to articles and resources about homeowner's and renter's insurance.
- Making an Easy Home Inventory List for Insurance | The Balance.comArticle with guidance on how to make a inventory list for home or renter's insureance
Your unexpected death can put a heavy financial burden on your family in addition to the emotional one. Purchasing life insurance is one part of the tool kit that will help your family manage your death. It can be used to:
- Cover funeral costs
- Pay off outstanding debts
- Help your loved ones maintain the lifestyle they have before your death
There are also some tax benefits too. Some folks use life insurance as way of building wealth that they can pass along to family.
Your life insurance needs might change as you age, build your family, or make lifestyle changes. There are two basic types of life insurance:
- Term – usually from one to 30 years and pays only if death occurs during the term of the policy. This is what most folks buy.
- Whole Life or Permanent – pays a death benefit whenever you die no matter how old.
Each of these can be broken down into other categories. Use the resources below to determine your need.
- Life Insurance and Annuities | The BalanceArticle with general guidance about life insurance and annuities with links to more detailed information.
- Life Insurance Basics | Mass.govArticle covering the basics of the life insurance
Wills and Healthcare Directives
- LawDepotLawDepot is now available through OverDrive. Log in using the Libby app or website
LawDepot allows you to create your own personalized legal documents specific to your state/province and personal situation.
- Massachusetts law about health care proxies and living wills | Mass.govA compilation of laws, regulations, and web sources on health care proxies and living wills by the Trial Court Law Libraries.
How Can I Avoid Fraud? And How do I Report it?
Here are some simple tips for avoiding fraud:
- Don’t share numbers or passwords for any bank accounts and credit cards.
- Don’t share your social security number.
- Take time to compare prices and returns.
- Ask for information in writing, read it carefully and review the paperwork with a neutral third-party-- this can be a spouse, a child, or a trusted friend.
- If a broker or sales person is pressuring you to wire money before you can get legal/financial advice, it’s most likely a scam.
- If you have fallen victim to fraud, you should use the resources listed below:
- Consumer Protection | Mass.govMassachusetts specific information concerning fraud, deception, and other unfair business practices.
- Frauds and Scams | Consumerfinance.govGuide with links to various kinds of fraud and how to handle them.
- Phone Scams | FTC.govArticle on how to recognize, report, and handle phone scammers
- Scams and Identity Theft | Consumer.govLinks to articles about Imposter Scams, Avoiding Identity Theft, Recovering from Identity Theft, Scams Against Immigrants, and Job Scams
Titles I can borrow from home!
The Executor's Handbook by
Acting as the executor, representative, or administrator of an estate is a complicated and time-consuming task. It's time consuming, complicated, and emotionally taxing. Here is a comprehensive guide to help you understand the basics of the procedures that settle an estate Readers say it best: "This book covers all aspects of estate settlement in a complete and thorough manner.", "The book is written in easy-to-understand terms, with lots of good practical advice.", "I actually bought it to place in my file cabinet along with my Trust documents, Living Will and other documents", "We liked it so much, I bought this book for a friend who was handling a new estate." .In practical and straightforward language, it covers all aspects of estate administration, including funeral arrangements, organ donation, administering probate, dealing with the deceased's assets and liabilities, and personal representative's compensation. You will understand not only your responsibilities but the responsibilities of those who will be assisting you. Tables of state income tax rates, intestacy laws, and state-by-state probate requirements are also included, and a glossary, index, and list of recommended works complete this handbook.
Insuring Your Peace of Mind by
Rather have a root canal than think about insurance? Join the club. But thanks to the quick and entertaining new book, Insuring Your Peace of Mind, consumers can regain control of their financial lives in a single afternoon. Even savvy people often throw up their hands in befuddlement when it comes to insurance, relying on cute commercials and questionable sales tactics to help make some of the most important decisions of their lives. Insuring Your Peace of Mind takes the confusion out of insurance by breaking it down into easy-to-understand information. The result? Insight that leads to the right protection, with the right company, at the right price. Author Billy Wagner is an insurance industry veteran and agency owner whose expertise has led to guest appearances on NPR and television. With a thriving business and a long list of awards and endorsements, he decided to share his knowledge with an insider's peak at an industry that only seems confusing--until now.In addition to the ins and outs of car, homeowners, and life insurance, Insuring Your Peace of Mind explains:* how insurance companies work* how to tell the good guys from the not-so-good guys * how to file a claim--and how claims really affect rates* the pros and cons of umbrella insurance* what to do in an emergency Throughout his decade-long career, Wagner has seen too many people become victims of financial disaster, thanks to insufficient knowledge or planning. And while there's plenty of "information" floating around about insurance, much of it is unhelpful at best and harmful at worst. He says, "By demystifying insurance, I've created a resource that helps people easily determine how to protect themselves and their family--from disaster as well as agents that may not have their best interests at heart."He also wanted to create something positive out of a personal tragedy. In 2004, he lost his brother, Bobby Wagner, an Army Reservist who was killed in an IED explosion in Iraq. In honor of Bobby, Wagner is donating the book's full purchase price--not just proceeds--to Folds of Honor, a foundation that provides educational scholarships for children and spouses of military men and women killed or disabled while serving. Want to support a worthy cause and learn 12 myths about insurance policies? Ready to save money with the top 10 tips for purchasing any insurance coverage? Insuring Your Peace of Mind delivers all of that and much more.
What Matters Most by
Founder of popular website Get Your Shit Together blends personal story and must-have advice in the ultimate guide to getting your affairs in order--from wills and advance directives to insurance, finances, and relationships--before the unthinkable happens. On July 17, 2009, Chanel Reynolds' husband, José, was struck by a car while cycling near their home in Seattle. In the wake of her husband's untimely death, Reynolds quickly realized that she was completely unprepared for what came next. What was the password to his phone? Did they sign their wills? How much insurance did they have? Could she afford the house? And what the hell was probate anyway? Simply put, when life went sideways she didn't have her shit together. As it turns out, most of us don't either. We're too busy, in denial, overwhelmed by too much information, uncertain where to start, or just uncomfortable having those difficult conversations. Reynolds learned the hard way that hoping for the best is not a plan, but you don't have to. Drawing on her first-hand experience, expert advice, and the unparalleled resources she's compiled for her celebrated website, Reynolds lends a human voice to a warren of checklists and forms and emotional confusion, showing readers how to: Create a will and living will Update (or finally get) the right life insurance policy Start or grow an emergency fund Make a watertight emergency plan Keep secure, up-to-date records of personal information Authoritative yet personal, grounded but irreverent, Reynolds' voice carries readers through a tough subject with candor and compassion. Weaving personal story with hard-won wisdom, What Matters Most is the approachable, no-nonsense handbook we all need to living a life free of worry and "what ifs."
