Money Talks – 4 Things To Do Right Now

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It’s all about the Benjamins and the Babies-
I’ve been thinking more and more about our finances ever since our baby girl was born.  Retirement was always in the way WAY back of my mind, I wasn’t even thinking about life insurance and savings accounts… now it’s time to really get things in order.  I’m no financial advisor, but my husband and I have done our research and here are the four things we just did:
1. We now have life insurance -
My husband was holding off on that as long as possible so I wouldn’t knock him off for the $$, and now, well, I need him around to help with the baby – ha ha.  Check out what your company offers (if you are a working Mom or Dad), we each get a small basic life insurance plan from our respective companies as part of our benefits package.  Then, we went through my husband’s company and only pay about $38/month for $500K of coverage between the two of us.  We read that you want a good chunk of cash but not to overdo it.  You are better off to additionally put a set amount each month into another account that earns a good amount of interest.  We still need to set that part up…  If you don’t have benefits from a company like ours, we found that Geico (get a quote here) had the lowest rates for the most return at the time of our research (around January of 2012).
2. We are counting down the days (actually years and years) till retirement -
I put 6% of my salary (pre-tax) into my 401K which my company matches all of.  My hubby puts in 10% into his retirement fund through his company.  If your company matches – match it to the fullest to take the most advantage of that perk (nothing like FREE money).  The word on the street is to multiply your total household salary by 12 and that is what you want to comfortably live on once you retire.
3. She’s going to college -
We started Zoey’s college fund at Scholarshare.  We set it up so they take a monthly amount directly out of our checking account, that way we don’t even have to think about it.  We also forwarded this information to our immediate family in case they wanted to donate for birthdays/Christmas etc.
Use this calculator to see how much you would need to save to pay for all of your child’s college.  Remember – you don’t need to pay for it ALL from this savings account, just do the best you can.

4. Move that savings account over -
Our bank offers a money market savings account that earns a little more interest than their standard savings account.  There are some guidelines that have to be followed, like – you have to always keep $2,500 in your savings account at all times or there is a monetary penalty.  Here are the deets from my bank on Money Market Savings.

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