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How to Back-up Your Life

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How to Back-up Your Life

Too often people go through life with a tunnel vision approach of how they plan to go about their daily activities, long term goals and work related endeavors. Any well thought-out strategy is successful because the planners know that “the best laid plans of mice and men often go awry”.

Life is always tossing in the monkey wrench. You should never assume that what you plan today will work for you tomorrow. We see examples of these alternative plans everywhere, yet most of the time they go unnoticed. What does this say about our priorities? By putting some focus on the areas we have neglected to plan for, we can get a better understanding of where our life priorities really stand and where they really should be.

Why is having a Plan B a vital part of success? Not only do back-up plans keep you calm in times of duress, but they also offer two important attributes that should always be accounted for before planning anything in life: flexibility and adaptability.

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Flexibility allows you to change plans without notice which means you can adapt to any situation that arises to achieve your intended goals. There are areas in life where you should always have a back-up plan. We know one thing for sure: that change is constant. You have to be able to handle change whether good or bad. Here are some suggestions in areas that may need attention.

Your Career

-Always back-up your career. This is something to consider now when the economy seems to be headed into dire straits. I know too many people who have been laid off and have no idea what to do if they don’t find another job in their field. Always find something you can do in lieu of your dream job.

-Update your resume often. Whenever you finish a big project, switch jobs or get a new title, it is important to update your resume right away. Not only will it save you time later when you need it, but it is always good to have it updated for spur of the moment career opportunities. I have seen people lose promotions because their resume was not ready to go and they took too much time to update it.

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-Save, Save, Save. Financial planners recommend that you have at the very least two months pay saved up. If you get laid off or worse, fired, there is no guarantee of a severance package. If a medical condition befalls you and you need to take an extended leave of absence, this is a security blanket that will see you through to your recovery. Even if you cannot seem to save that much, save something or meet with a planner who will help determine the plan best for you based on your current salary that will stick.

Your Finances

-Always have a retirement plan. If you are at least 30 years of age and have not opened a savings account, 401K or Roth IRA, do it now! This is especially important for those earning a living in the blue collar or hospitality industry with companies that do not offer you benefits for retirement. Retirement may seem like a long way off, but by opening an account is a step in the right direction towards ensuring your stability later on in life.

-Plan for divorce. It is not a pretty phrase to read, but let’s face it, more than half of all marriages end in divorce. Of course we all tell ourselves that we will be the exception, but it is still a financially independent and intelligent thing to keep in mind, especially for women, so that we have financial security should the marriage fall apart. It is as simple as starting a separate savings account. You can find amazing deals right now if you do it online with interest rates up to 4.75%! That is as good as a CD and you can keep adding to it for the life of the account.

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-Plan to be widowed. The last thing you need when something so horrible happens is to have to worry about finances. Whether you are 20 or 60, you should have a living will. If you need a good reason why, let’s remember Terri Schiavo. She was only 25 and the absence of a living will kept her in a vegetative state for more than a decade. You and your partner should have life insurance policies with the other being named as the beneficiary.

Also, any retirement plan should also have the spouse’s name on it in the event of a tragedy. Each of you should also have your own credit card. Too often I see spouses just added on as users to the credit cards without realizing that they are just authorized users and not actual account holders. It is important to build your own credit and not just rely on your spouse’s.

-Always insure valuable items. The engagement ring you bought your wife, the family heirlooms your mother gave you, antiques of value in your house, etc. It is important to inventory your items of importance in case of a natural disaster, fire or robbery. Get them appraised first before insuring. You might also want to take photos of the items and put them somewhere safe.

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Your Personal Records

-Always back up important records. Plan a day each month to back up your files on your personal PC, laptop and work computer. I recommend an external hard drive. What size you will need depends on what kind of files you work with each day. External drives have come down in price and are much easier to use and less time consuming than CD burning. Instead of amassing a bunch of CD’s, you can just update files on the external hard drive.

This also means scanning in and saving important documents such as birth certificates, any financial records such as taxes and of course, work files! In case of a fire or computer crash, you will still have this valuable information. Your birth certificate can be certified by a notary public without having to go through vital statistics from the state you were born. You may also want to look into a safety deposit box for heirlooms and important records. Not only will these items be insured, but they will be safer than in your personal possession.

Back-up plans should not only be applied to business projects, educational goals, but everywhere in the real world: dealing with children, spouses and social environments. It is important to pay attention and start planning the alternatives so you are not left in the dust unable to adapt because you failed to develop a Plan B. Lack of planning robs you of your flexibility because unfortunately, failure is always an option and if you fail to plan, you plan to fail. You may never use your back-up plans, but like the flood insurance you purchased, it’s always nice to know you have it.

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Last Updated on January 5, 2022

33 Painless Ways to Save Money Now

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33 Painless Ways to Save Money Now

In a difficult economy, most of us are looking for ways to put more money in our pockets, but we don’t want to feel like misers. We don’t want to drastically alter our lifestyles either. We want it fast and we want it easy. Small savings can add up and big savings can feel like winning the lottery, just without all of the taxes.

Some easy ways to save money:

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  1. Online rebate sites. Many online sites offer cash back rebates and online coupons as well. MrRebates and Ebates are two I like, but there are many others.
  2. Sign up for customer rewards. Many of your favorite stores offer customer rewards on products you already buy. Take advantage.
  3. Switch to compact fluorescent bulbs. The extra cost up front is worth the energy savings later on.
  4. Turn off power strips and electronic devices when not in use.
  5. Buy a programmable thermostat. Set it to lower the heat or raise the AC when you’re not home.
  6. Make coffee at home. Those lattes and caramel macchiatos add up to quite a bit of dough over the year.
  7. Switch banks. Shop around for better interest rates, lower fees and better customer perks. Don’t forget to look for free online banking and ease of depositing and withdrawing money.
  8. Clip coupons: Saving a couple dollars here and there can start to add up. As long as you’re going to buy the products anyway, why not save money?
  9. Pack your lunch. Bring your lunch to work with you a few days a week, rather than buy it.
  10. Eat at home. We’re busier than ever, but cooking meals at home is healthier and much cheaper than take-out or going out. Plus, with all of the freezer and pre-made options, it’s almost as fast as drive-thru.
  11. Have leftovers night. Save your leftovers from a few meals and have a “leftover dinner.” It’s a free meal!
  12. Buy store brands: Many generic or store brands are actually just as good as name brands and considerably cheaper.
  13. Ditch bottled water. Drink tap water if it’s good quality, buy a filter if it’s not. Get 
      a reusable water bottle and refill it.
    • Avoid vending machines: The items are usually over-priced.
    • Take in a matinee. Afternoon movie showings are cheaper than evening times.
    • Re-examine your cable bill. Cancel extra cable or satellite channels you don’t watch. Watch the “on demand” movie purchases too.
    • Use online bill pay. Most banks offer free online bill paying. Save on stamps and checks, and avoid late fees by automating bill payment.
    • Buy frequently used items in bulk. You get a lower per item price and eliminate extra trips to the store later on.
    • Fully utilize the library. Borrowing books is much cheaper than buying them, but in addition to books, most local libraries now lend movies and games.
    • Cancel magazine/newspaper subscriptions: Re-evaluate your subscriptions. Cancel those you don’t read and consider reading some of the other publications online.
    • Get rid of your land-line. Do you really need a land-line anymore if everyone in the family has a cell phone? Alternatively, look into using VOIP or getting a cheaper plan.
    • Better fuel efficiency. Check the air pressure in your tires, keep up with proper auto maintenance, and slow down. Driving even 5MPH slower will result in better fuel mileage.
    • Increase your deductibles. Increasing the insurance deductibles on your homeowners and auto insurance policies lowers premiums significantly. Just make sure you choose a deductible that you can afford should an emergency happen.
    • Choose lunch over dinner. If you do want to dine out occasionally, go at lunchtime rather than dinnertime. Lunch prices are usually cheaper.
    • Buy used:  Whether it’s something small like a vintage dress or a video game or something big like a car or furniture, consider buying it used. You can often get “nearly new” for a fraction of the cost.
    • Stick to the list. Make a list before you go shopping and don’t buy anything that’s not on the list unless it’s a once in a lifetime, killer deal.
    • Tame the impulse. Use a self-enforced waiting period whenever you’re tempted to make an unplanned purchase. Wait for a week and see if you still want the item.
    • Don’t be afraid to ask. Ask to have fees waived, ask for a discount, ask for a lower interest rate on your credit card.
    • Repair rather than replace. You can find directions on how to fix almost anything on the internet. Do your homework, and then bring out your inner handyman.
    • Trade with your neighbors. Borrow tools or equipment that you use infrequently and swap things like babysitting with your neighbors.
    • Swap online. Use sites like PaperBack Swap to trade books, music, and movies with others online. Also, look for local community sites like Freecycle where people give away items they no longer need.
    • Cut back on the meat. Try eating a one or two meatless meals every week or cut back on the meat portions. Meat is usually the most expensive part of the meal.
    • Comparison shop: Get in the habit of checking prices before you buy. See if you can get a better price at another store or look online.

    Remember that saving money is not about being cheap or stingy; it’s about putting money into your bank account rather than giving it to someone else. There are many ways to save money, some you’ve never thought of, and some that won’t appeal or apply to you. Just pick a few of the ideas that sound doable and watch the savings add up. Save big, save small, but save wherever you can.

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    Featured photo credit: Damir Spanic via unsplash.com

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