Saving money is the objective for many households. The only way to live a decent quality of life while living off of a small income is to essentially cut back as much as possible. Eating out less, using cash instead of credit, comparison shopping, and couponing are just a few ways in which you can save money on your monthly expenses.
The common way to save money is to spend less and eliminate as much as possible. Yet it’s important to realize that sometimes you have to spend money in order to save it.
Take insurance coverage, for instance. Believe it or not, there are thousands of individuals that don’t have insurance coverage in certain areas of their life because they simply can’t afford it. While I totally agree that you shouldn’t purchase things you can’t reasonably afford, sometimes you have to ask yourself, can you afford to go without it?
Knowledge is Power
Lack of knowledge can sometimes prevent us from making smart investments that will help us save over the course of a lifetime. Many people discard insurance as nothing more than an expense that will only be beneficial IF something should happen. If you’re never in an auto accident, never have your home robbed or damaged by natural disasters, and never fall ill, the money you spend on insurance coverage seems pointless.
Let’s be honest, that’s a big IF
The Cost of Going without Insurance
Insurance is certainly a “just in case” type of service, but in many aspects of life, it is wise to have. Imagine if you didn’t have car, health, life, or property insurance. Exactly how much would that cost you?
· Car Insurance – car insurance is an insurance that all US drivers must have to be legally registered to drive. Insurance coverage helps to cover the expense of an accident should you find yourself in one. At fault or not for the accident, car insurance covers all or most of the expense to repair any damage to vehicles or property. It also pays for any medical bills resulting from the accident to you or the other party (if you’re at fault).
Medical bills and property damage can average anywhere from a few hundred dollars to a few thousand dollars out of pocket. However, insurance coverage only requires you to pay your deductible. Even for those who have to obtain auto insurance SR22 quotes for repeat traffic violations, the monthly cost of the insurance policy is much cheaper than paying for the cost of an accident out of pocket.
· Health Insurance – eating right and exercising are only a portion of what needs to be done to keep your health in order. You also need to visit various doctors and specialists periodically, if for nothing more than to get checked out to ensure you’re in good health. According to Blue Cross Health Insurance, a typical physical at the doctor could run you an easy $200 dollars.
Health insurance coverage has become increasingly affordable for households of all sizes. For those with lower income, obtaining free government assisted health insurance is an option, while others can find affordable health insurance plans that fit into their budget. With a small co-pay of $10 – $50, you’re saving yourself hundreds of dollars easy.
· Home Insurance – Homeowner’s or renter’s insurance is another insurance coverage you should not be without. Should your property become damaged because of natural disasters, broken into or vandalized property insurance helps to cover the costs. When you consider the cost of replacing your personal items and repairing property damage, you’re looking at thousands of dollars. Property insurance covers the costs of the damage or lost personal possessions with a requirement that you simply pay the deductible.
· Life Insurance – No one plans to pass on but it happens. The scarier part about it is you never know when it can happen. Life insurance helps to cover any remaining expenses you might have and also gives your family something to live on until they can get on their feet. Imagine the cost of paying for your funeral, paying off your debts, and maintaining the same quality of life for the next year. You’re looking at tens of thousands of dollars. A life insurance policy covers this for your family free and clear.
When you look at the cost of unexpected events in life without proper insurance coverage, you can clearly see how having insurance is an investment worth making. All it takes in one incident – one car accident, one illness, one natural disaster, or one unexpected death to set you back by thousands of dollars. Rather than waiting until you fall into an enormous amount of debt for no reason, you’re better off investing in adequate insurance coverage now so that you can save money now and in the future.