I know I’m skipping a lot of really good stuff from this book but this is why I am encouraging you to invest in reading it for yourselves. Today, I will touch on the exciting topic of insurances, real estate and mortgages. Relax, I’m only going to give you the highlights, but these are important for us to at least have a general idea about so that we can preserve our financial health.
Chapter 7 is called “Clause and Effect: the role of insurance in your financial plan”. Seems weird at first to think of insurances as a part of our financial health plan, but insurances safeguard our finances from some of life’s major problems. For instance, having health insurance keeps us from having to flip the whole bill if we happen to get sick, right? The following is a list of the 7 insurances Mr Ramsey says we all should have, please make sure you have sufficient coverage on each:
1- Auto: check if you need collision due to the car’s age
2- Home/Rental: get replacement cost
3- Health: check deductibles
4- Disability: designed to replace income lost due to short term or permanent disability…make sure to get “own occupation” coverage or else you will not be able to collect if you can still do any old job
5- Long Term Care: for nursing homes, only get after the age of 60
6- Identity Theft: this is not really an insurance but it helps with the mounds of paperwork and expenses if your identity is stolen or compromised
7- Life: only get TERM, do not fall for any other types, and get 10x your income
Chapter 12 is called “Real Estate and Mortgages: keeping the American dream from becoming a nightmare”. I am not going to mention how crazy the housing market has been the last couple of years, ok I just did mention it but, the truth is that owning a home is starting to seem like only a dream for too many people these days. But with the right knowledge, and the right behavior, it still can be our dream. Very simply, here is what a mortgage should encompass if you are one of the blessed to purchase your own home.
Get a monthly payment of no more than 25% of your take-home pay on a 15 year fixed-rate loan, with at least 10% down. This should make payments manageable, as well as save you lots of cash in interest throughout the life of your loan.
2023’s Got A Minute? Book Club
January: The First & Best Book Ever: The Bible
February: Love Is In the Air: “The 5 Love Languages: The Secret to Love That Lasts” by Gary Chapman
March: Spring Growth: “Secrets of the Vine” by Bruce Wilkinson
April: Living the Resurrected Life: “The Wonderful Spirit Filled Life” by Dr Charles Stanley
May: My Spiritual Mom: “Making Good Habits Breaking Bad Habits” by Joyce Meyer
June: Spiritual Dad: “It’s Not About Me- Rescue from the Life We Thought Would Make Us Happy” by Max Lucado
July: Financial Freedom “Complete Guide to Money” by Dave Ramsey
<>< Peace, Diane
