A Brief Guide to Adult Financial Responsibilities
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A Brief Guide to Adult Financial Responsibilities

A Brief Guide to Adult Financial Responsibilities

Do you remember what it was like being a child and wishing you were a grownup? Better yet, do you remember the admonishments from adults to enjoy your childhood while it lasts? Don’t you wish you would’ve listened to that sage advice a little more?

Adulthood comes with many responsibilities, and the vast majority of them involve money to some degree. That’s why it’s incumbent upon us to understand how to manage money and create a financial plan for the future. In this brief article, we’ll discuss some of the financial responsibilities of adulthood and ways to handle them.

Retirement Planning

One of the most important parts of adulting is planning for your retirement. Many people never invest in a retirement fund, only to find out once it’s too late that their social security isn’t enough to live on. That’s why it’s good to speak with a financial advisor about different investment options to pay for your retirement, such as an IRA or multi-year guaranteed annuity (MYGA).

One of the great things about MYGAs is you don’t have to pay income tax on them until you make a withdrawal. However, different insurance companies offer varying interest rates on their annuity products, so do your due diligence before signing an annuity contract. Some annuity companies even have a multi year guaranteed annuity calculator to help you determine the value of your premiums at the end of your contract term. Also, longer contracts tend to offer higher interest rates.

Home Repairs

Home Repairs

Almost everyone pictures what it would be like to move into a new home. Surely, in your own visions, you never picture having to deal with plumbing, HVAC, and appliance repairs. However, they’re all inevitably part of being a homeowner.

A home warranty will give you peace of mind about how to pay for home repairs. Everything breaks down with time, and repairing and replacing refrigerators, washers, dryers, and other appliances can quickly devour your budget. To learn more about how warranties can prevent you from running through your emergency fund and how much home warranty plans cost, visit the AFC Home Club website.

Life Insurance

Life Insurance

At some point, we all have to think about our family’s financial strength after we’re gone. Life insurance is a difficult conversation to have, but it’s one of the most vital. Even if you’re young and healthy, it’s never too early to begin thinking about life insurance and your family’s financial future.

With a whole life insurance policy, your life insurance policy lasts for as long as you continue to make your monthly payments. One of the great things about whole life policies is they accrue cash value with each premium payment, which you can use as collateral for loans. You can even cash out your policy if you feel you no longer need it. There are also term life policies, which are good for a specific length of time.

Being financially responsible is part of adulting the right way. Indeed, learning to plan and manage your finances is key to your prosperity and happiness. One of the first things you should do as an adult is to begin planning for retirement (unless, of course, you plan on working forever). It’s also wise to save for unexpected emergencies and get warranties to protect against costly home repairs. Additionally, it’s important to get life insurance to secure your family’s financial future.

Being an adult comes with a lot of financial responsibilities. However, you can stay on top of everything with careful planning. Amid all your financial planning, don’t forget to set aside money for the fun times, too.

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