Tag: #insideoutmoney

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Thoughtful Thursday – February 29, 2024

amybenoit

My intention is to post a Thoughtful Thursday column each week and share some of the insights I have learned in the past week. Here are some of the things I’ve learned this week:

Before Breakfast – Read a short book
  • If you are out of the habit of reading or feeling tired in general, read a short book. It can be just the thing to get you going.
  • Look for a short book to distract your mind from social media, boredom, sadness, etc.

I have been so busy and stressed with schoolwork this month and took nearly all month to read two books for fun. I decided to read a short book of poems as my third book to give myself a mental break, and I have ended the month reading four books. I think reading the short book gave me a mental break and momentum to read more.

Mentally Stronger with Therapist Amy Morin – This Therapy Strategy Will Help You Become the Person You Want to Be
  • Behave like the person you want to become.
  • If you change your behavior first, the feelings will follow. Changing your behavior can also change your thoughts because you train your brain to see yourself differently.
  • Want to feel happier? Ask if you are happy right now. Want to be more confident? Act as if you feel confident.
  • If you are battling depression, ask yourself what you might be doing differently today if you felt a bit better. Depression causes us to do things that reinforces depression, such as staying in bed. Anxiety causes us to avoid things that will ultimately help us solve a problem.
  • We do the things that reinforce how we are feeling. So when you feel angry, you’re more tempted to complain. When you feel anxious, you might pace back and forth and think about all of the things causing you to feel anxious.
  • Act as if you feel confident to help you feel confident. Pursue classes/learning/education to feel more confident about a topic. Confidence comes from facing your fears.
  • Act “as if.” When you feel low on energy, act as if you have energy. When you’re struggling with fear, act as if you feel brave. If you want to change your life, act like a mentally strong person. If you want more friends, act like a friendly person. Acting “as if” doesn’t mean you’re acting as a fake person; it just means you’re putting a certain aspect of your personality forward.
  • What kind of person do I want to be? What are some steps I could take right now to start acting more like that kind of person? How would it change my life?
  • How would I be acting right now if I felt better? Changing your behavior first shifts your emotions.
The Mel Robbins Podcast – 4 Easy Nighttime Habits to Feel Energized & Sleep Better
  • Pick your bedtime. What time do you need to be asleep if you wanted to get eight hours of sleep every night? In order to pick a bedtime, you need to know what time you truly need to wake up. Know how long your morning routine takes! Have a plan. What time do you really need to wake up in order to truly start your day on the right foot and do all the things you want/need to do in the morning?
  • The time you need to wake up is probably a half hour or hour earlier than you have been waking up. If you aren’t honest with yourself about what time you need to get up to give yourself the runway of time that you need, then before you have laid your head on the pillow tonight, you have already screwed up your morning routine.
  • Start by picking the time you need to wake up – the time you need to give yourself the runway, the time that would really allow you to do everything that you would like to do, and plan for eight hours of sleep to establish your bedtime. You need to be asleep for eight hours, so figure out how long it takes you to fall asleep and decide what time you need to get into bed to get eight hours of sleep!
  • If you don’t pick the right time to climb into bed, you will never actually be able to build a rock solid evening routine. Understanding what it takes to fall asleep and giving yourself that amount of time and building an evening routine that leads up to it is essential. Having a consistent bedtime and wakeup time will help you get better sleep and help you fall asleep faster. You will train your brain to be a better sleeper.
  • Clean up the mess so your morning is fresh. Empty the dishwasher/do the dishes, take out the trash if needed, clean up the counters, turn off the lights, clean up the things from today, and charge your phone/computer.
  • Once you’ve cleaned up the mess, take five minutes and set yourself up for the morning. If you’re going to exercise in the morning, lay out your clothes the night before. If you take supplements or vitamins in the morning, set them out the night before. If you’re bringing lunch to work, portion out your lunch. This eliminates decision fatigue and your morning routine will take less time.
  • Take five minutes for yourself. Before you give it to the television, social media, etc., give time to yourself. You can sit and be quiet, read a book, have a cup of tea, or do a skincare routine.
  • Tuck your phone in somewhere other than your bedside table or in your bed with you. It creates fragmented sleep, which impacts your ability to fall asleep and stay asleep. You are more likely to stay up later in bed on your phone if it is near you.
  • Be intentional. Pick your bedtime and be very serious about it. Experiment with it until you settle into a consistent bedtime and give yourself a runway for your morning routine.

I am still struggling with setting a consistent evening routine/bedtime and morning routine. I know what I want to accomplish each morning, but often end up snoozing or sleeping through alarms. This is something I am working on! This podcast was a great reminder.

Inside Out Money – Smash or Pass? Common Financial Rules

This podcast covered common financial rules and whether the podcasters agree or disagree with them. Here are some of the insights.

Recommended:

  • Hold 3-6 months of expenses in cash in an emergency fund. Some people recommend 6-12 months of expenses in a high-yield savings account.
  • Save and invest at least 15-20% of your income in a high-yield savings account or in stocks/bonds.
  • 24/10 rule for buying a vehicle. Put down at least 20%, limit the car loan to no more than 4 years to avoid excessive interest, and spend no more than 10% of your gross income on transportation costs (car payment, gas, insurance, maintenance). If you have to drag out your car loan longer than four years to be able to afford it, you probably can’t afford it. The loan may be longer than the life of the car to you.
  • Only buy a used car to minimize the depreciation. Caveat: Only buy a new car if you can afford to buy it outright (no financing).

Common financial rules the podcasters do not recommend following and why:

  • Some people say your asset allocation of your investments should be 100 minus your age to determine the percentage of your portfolio that should be in stocks versus bonds. For a 40-year-old: 100 – 40 = 60% in stocks, 40% in bonds. Reasoning: That seems too high for a percentage of bonds and is not risky enough for long-term gains.
  • 50/30/20 rule for budgeting after taxes= 50% necessities, 30% for “wants”, 20% for financial goals (saving for retirement and paying off debt). Reasoning: It depends on your income. Sometimes housing and bills take up more than 50%. Try to save 20% minimum.
  • Gross monthly income (before taxes) – debt for housing shouldn’t be more than 28%. Debt-to-income ratio – no more than 36% of your total income should be going toward debts (car payments, credit card debt, student loans, etc.) Reasoning: 36% seems too high for debts.
  • Spend 3x your income on a house. Reasoning: It is overly simplistic and doesn’t take many factors into account. It depends on what interest rates are, how much debt you have, what the cost of living is, how much you’re putting down, etc.
  • Always put 20% down. Reasoning: That would limit many people from buying a house. If your interest rate is lower than a high-yield savings rate or lower than your investment returns, no need to put down 20%.
  • Cars should cost 10% of your annual income. So, if you make $50k, your car should be worth no more than $5,000. Reasoning: You wouldn’t be able to buy much of a car in that price range.
  • You should own a car for at least 10 years. It’s a solid rule. Reasoning: It isn’t advantageous to keep buying cars, but it may not work for everyone. Your needs may change.

I look forward to reading, learning, and sharing more with you soon!

Thoughtful Thursday posts, Uncategorized

Thoughtful Thursday – December 7, 2023

amybenoit

My intention is to post a Thoughtful Thursday column each week and share some of the insights I have learned in the past week. Here are some of the things I’ve learned this week:

Self Care IRL – 7 Pieces of Advice That Will Change Your Mentality
  1. Celebrate your unique journey. You are a one-of-a-kind masterpiece. Celebrate your flaws as part of your unique story.
  2. Conquer the comparison game. Comparison steals your joy and peace.
  3. Embrace the power of now. Understand the true value of now and embrace each moment. Find joy in the little things and live a life filled with purpose and passion.
  4. Cultivate a grateful heart. Gratitude is a mindset. Train your mind to always see the good in something to bring yourself more joy and reduce your anxiety.

5. Transform fear into action. When you do something you’re fearful of, you will boost your confidence and growth.

6. Build a vibrant community. Surround yourself with people who support you, challenge you, and inspire you to be better.

7. Empower yourself. You have the power to change your life. You can overcome adversity and achieve greatness.

The Mel Robbins Podcast – The Science of Your Gut
  • Bloated vs. gaining weight.
    • bloating= burping, farting, and/or constipation. When you’re bloated, your gut bacteria is off balance. The biggest tip when you are feeling bloated or distended is to not wear pants with buttons on them. Wear stretchy pants. Bloating can be caused by foods. Bloating can also happen when you’re swallowing a lot of air when eating too fast.
  • Foods that cause bloating in many people: brussels sprouts, broccoli, cauliflower, cabbage, sparkling beverages, gluten, dairy, artificial sweeteners, sugar, and alcohol
  • The gold standard for food-related gut discomfort is an elimination diet followed by adding that item back to your diet to see if that is causing your bloating.
  • If you’re already bloated, don’t go for raw vegetables like cauliflower and broccoli. This will cause further bloating.
  • Ibuprofen or aspirin will make you more bloated if you’re already bloated.
  • Give your gut more rest than the (up to) 8 hours you’re sleeping. Stop eating at least 2-3 hours before bed to give your gut more time to rest. Try to aim for 12 hours a day of giving your gut a rest from food.
  • Morning routine to reduce bloating: fasting (have I fasted for 12 hours?), fitness (any type of fitness, such as a 30-minute walk), then fermented and fibrous foods
  • The best form of debloating is exercise. Exercising in sunlight produces short chain fatty acids.
  • Your first meal of the day is your best chance to improve your gut and hormonal health. A perfect breakfast would be something like yogurt, nuts, berries, and ginger tea. A tofu or egg scramble with veggies is also great. Ginger and peppermint (even as a tea) can make your gut bacteria happy.  
On Purpose with Jay Shetty – 8 Strategies for Deeper Sleep & Boosting Your Energy All Day
  • Location has energy. Time has memory. When you do something in the same place at the same time every day, it becomes easier.
  • Take the tv out of your bedroom so that you are not using your bedroom as a space for being wired into something. It’s important to use your bed for only sleep and rest.
  • Your sleep is impacted by how you live when you’re awake. Slowly drink warm water first thing in the morning to kick off your digestive process.
  • Two hours before bed, lower the thermostat to between 60-70 degrees Fahrenheit. The temperature in your room impacts your sleep.
  • Cave-like darkness – blackout blinds and no lights. Darkness helps to stimulate the production of melatonin, a hormone that helps you fall asleep and stay asleep until you complete all sleeping cycles. Darkness promotes relaxation, which helps you fall asleep quickly. The brain is very sensitive and can detect even the slightest amount of light and stop the production of melatonin, which plays a huge role in helping you get quality sleep.
  • Circadian rhythm – when you get bright light in the morning, it can help you feel more alert during the day and helps you fall asleep faster in the evening. If you’re exposed to bright light within two hours of your bedtime, it can make you less sleepy and fall asleep later. Get exposure to sunlight within the first hour of waking up.
  • Getting a good mattress plays a role in quality sleep. Find the right material and support for you. 5-7 years is the average life of a mattress.
  • Yoga nidra + deep breathing exercises to lower your heart rate, your blood pressure, and stress levels to help you drift off to sleep
  • Know the best sleep positions. This chart is from Healthline.
Life Kit – How to make a better to-do list
  • Decide what matters to you in this moment. Come up with a big picture goal and consider the one thing that would make everything easier or better.
  • What do I want to be? What do I want to experience? What do I want to have?
  • Once you have a goal, break it down into actual steps and deadlines.
  • Decide whether you will have a paper or digital to-do list and hourly or daily or weekly layout.
  • Block out scheduled time for the task!
  • 2-minute rule – if it takes less than two minutes, do it right then and there. Don’t add it to your list.
  • Limit your to-do list to four or five doable tasks at a time. Don’t add to it until you’ve checked something off.
  • Pick something to let go. When you choose what to fail at ahead of time, you’re really changing your mindset and won’t feel like you’re failing. You’ll see it as a reminder of your values in this moment and what you’ve committed to.
  • To-do lists exist to serve us.
Inside Out Money – Step-by-step path to grow wealth
  1. Have some savings. Create a gap between your income and expenses.
  2. Have 6 months of expenses in an emergency fund in a high-yield savings account.
  3. Pay off all your debts except the mortgage.
  • Contribute up to the company match in your company’s 401k.
  • Once you’ve contributed up to the company match, contribute to a Roth IRA
  • Once you’ve contributed the maximum amount to the Roth IRA, go back to contributing to your employer’s 401k and work toward hitting the maximum contribution. Most people are not able to contribute the maximum due to their incomes/expenses. I am in this boat!
  • If you have maxed out your 401k for the year, max out your HSA account if you are eligible for an HSA.
  • If you have kids and are contributing to college expenses, contribute to a 529 plan. Some parents try to target around $200,000 total for funding a 529 (college plan)! Others don’t contribute to a 529 plan. That decision is up to you.
  • The next step is to pay off the mortgage.
  • Once the mortgage is paid off, open a taxable brokerage account. Invest in low-cost index funds across a broad market.

The podcaster discourages listeners from investing in target-date funds. There are very large bond mixes in them and they tend to be conservative in their allocations.

I look forward to reading, learning, and sharing more with you soon!

Book review posts, Thoughtful Thursday posts, Uncategorized

Thoughtful Thursday – November 30, 2023

amybenoit

My intention is to post a Thoughtful Thursday column each week and share some of the insights I have learned in the past week. Last week I skipped Thoughtful Thursday and decided to post a Thankful Thursday post on my social media in honor of Thanksgiving, so here are some of the things I’ve learned in the past two weeks:

On Purpose with Jay Shetty – 10 Ways to Manage Stress & Anxiety During the Holidays
  • Remember you’re allowed to say “no.” You don’t need to go to every party or event. Say “no” ahead of time if you know you don’t want to go. Prioritize those that matter to you the most.
  • Take your paid time off. When you don’t take time off, you don’t take time to refuel.
  • Add some healthy meals and healthy habits between holiday events. We tend to stray from our normal eating patterns during holiday events.
  • Prepare yourself to know that some people and conversations will be triggering. Don’t waste your energy trying to convince them otherwise. Expect that it will happen so that you aren’t caught off guard. Expecting triggers is better than hoping they won’t happen.
  • Stop doing things just because someone else wants you to do them. The holidays are a time for you, and you should take time to do some of the things YOU want to do.
  • Make a budget for gifts!
  • Make sure you’re clear with people about what you want for gifts. As we get older, it becomes harder and harder for people to read our minds about what we want.
  • Plan ahead. Look at your calendar and make sure you aren’t going to be overwhelmed. Make sure you can be fully present at the gatherings you attend.
  • Make time to reflect this year. What do you want to add next year to make it better? What do you want to subtract next year to make it better?
  • Don’t abandon your self-care practices. The holiday season is often when we need self-care most to deal with the stress.
Mentally Stronger with Therapist Amy Morin – Stressful Holiday Season? How to Manage Your Mental Health
  1. Design your holiday season. What kind of holiday season do you want this year? Figure out what your ideal holiday season would look like and how you are going to make this year ideal. Once you decide what you want the holidays to look like, you can decide whether to accept a holiday invitation or host a party.
  2. Use the last year test to determine how important something is. Ask yourself, “what did I buy that person last year?” If you have no idea, it probably doesn’t matter.
  3. Set time limits on certain activities. Ex: shopping for a gift, decorating, how much time you spend at a party.
  4. Create a list of what not to do. Ex: don’t go over your budget, don’t keep holiday cookies in the house, don’t say yes to invitations you don’t want to accept, etc. You can make your own list.
  5. Practice acceptance. You don’t have to force yourself to feel happy this time of the year. Keep going anyway without forcing happiness on yourself. You can also practice acceptance when it comes to dealing with others during the holidays (ex: political comments during the holidays).
Inside Out Money – End-of-year financial sh*it you need to do!
  • Max out your 401k or make sure you are maximizing your employer match. I know for many people, including me, contributing the maximum $22,500 is not feasible.  Note that some employers allow you to contribute a dollar amount or a % of each paycheck, and some only let you contribute a dollar amount.
  • If you max out your 401k early, you are losing out on your employer’s match for the rest of the year.
  • Max out your Roth IRA contribution if you would like to ($6,500 for 2023).
  • Max out your HSA if you are eligible for one.
  • Make sure you use your FSA if you aren’t allowed to roll over any amount into the next year. Spend the money this year.
  • Choose your medical plan for the next year. If you’re married, decide which plan to go on (your own or your partner’s).
  •  Schedule any doctor’s appointments that are still covered before the end of the year (physical, OBGYN appointment, dental visit, etc.)
  • Optimize around your deductible. If you’ve met your deductible and you need a colonoscopy or procedure, try to get it done this year.
  • Review your credit card rewards and ensure they don’t expire at the end of the year.
  • If you want to reduce your taxable income in 2023, look into charitable contributions.
  • Review your PTO balances and make sure you aren’t losing any that can’t be rolled over into the next year. Plan some of your days off for 2024.
  • Prep for your taxes.
  • Check your smoke and carbon monoxide detectors.
  • Review your expenses and set a budget for 2024.

https://www.gabethebassplayer.com/blog/if-you-work-hard

I loved this post from Gabe the Bass Player. This is his post:

“If You Work Hard…

November 24, 2023

…you will become better.

It doesn’t mean you’ll become great, or get paid, or get famous, or get to quit your day job, or win the comparison challenge, or break new ground, or get the credit, or get noticed, or be respected in the field.

It might. It could. I hope it does. Hard work might turn into all of those things for you.

But if you keep working hard you will get better. The increments might be big or small and the word ‘better’ might evolve in its definition over time…but better is where you’re heading if you’re willing to work.“

The perfect conditions

I loved this post from Seth’s Blog about how the perfect conditions will never happen; we need to take action anyway.

The perfect conditions

Somewhere, there is the ideal soil for growing mangoes. Or the best possible wave for surfing. Or the most romantic sunset for a proposal.

But it’s not right here and it’s not right now.

Our success has a lot to do with how we dance with conditions that aren’t quite perfect.

After twenty years of symptoms and pain, I recently had surgery and was diagnosed with endometriosis. I have been trying to educate myself about it since my diagnosis. This podcast and book were very educational!

The Women’s Vibrancy Code – Reclaiming Life from Endometriosis
  • Resources: Below the Belt documentary about endometriosis + Beating Endo book
  • The notes I am choosing to share are from both the podcast link and the Beating Endo book.
  • Symptoms: Endo can affect every organ system. Many are incorrectly diagnosed with IBS due to having constipation and/or diarrhea, bloating, and painful bowel movements. You can have painful periods, pelvic pain, penetration pain/painful sex, urinary frequency, UTIs, fatigue, exhaustion, and infertility. Everyone has different symptoms.
  • Endometriosis is an inflammatory disorder that impacts every part of the body. It causes gut issues, and those with endo have higher likelihood of autoimmune diseases.
  • Endometriosis is not just in the uterus. Endometriosis is external or outside of the uterus. Endo is not found in the uterus. Endometriosis is when we have endometrial-like cells outside of the uterus, and there’s no exit point for them.
  • Endometriosis can’t be seen on imaging unless there are cysts. True diagnosis is a surgical diagnosis. A positive diagnosis is possible only via analysis of excised tissue. Most doctors are doing the wrong surgery (ablation/burning of endometriosis). Excision (removing the endometriosis) is the recommended surgery.
  • 9% of female fetuses have endometriosis!
  • If the mom, grandma, aunt, or sibling has endometriosis, that daughter/granddaughter/niece/sibling is 7-10x more likely to have endometriosis.
  • It’s never too late to reclaim your life. Many people are diagnosed in their 30s and 40s. You can’t cure endometriosis, but you can take steps to manage symptoms.
  • Any relief from symptoms does not achieve the eradication of your endometriosis. The disease may still progress even when you are treating its symptoms. The only treatment is to cut the endometriosis out of you, and it can grow back.
  • Treatment to manage symptoms (does not cure endometriosis): pelvic floor physical therapy, working on anxiety/stress reduction, and integrative nutrition (anti-inflammatory diet and identifying triggering foods). Endometriosis is inflammatory in nature, so we need to take steps to combat inflammation. The authors emphasized that pro-inflammatory categories of food should be eliminated: gluten, dairy, soy, sugar, and artificial sweeteners.
  • 2 surgery options
    • Ablation – applying heat to endometriosis. This is surface level! It shrivels the inflammation, but it’s still there. This is the most common surgical method, but the least helpful.
    • Excision – physically cutting out and removing the endometriosis.
  • Some endometriosis specialists have done an extra fellowship in endometriosis. Make sure your diagnosis is done correctly and the specialist you’re seeing is actually trained in endometriosis. Make sure more than one biopsy is taken.

The Beating Endo book contained so much educational information and many resources!

Self Improvement Daily – “Happiness ‘when’ starts with happiness now.”

So many of us choose to postpone our happiness until another day. We tell ourselves:

  • I’ll be happy when… I get a promotion or earn more money.
  • I’ll be happen when… I get married.
  • I’ll be happy when… I go on vacation.

If you’re not finding ways to be happy right now with what you have, you’re not going to feel all that different when your circumstances change.

So instead of being “happy when”, what can you do to start being “happy now”? How can you set an intention, adjust your attitude, or otherwise change your mindset?

Tony Robbins says “happiness is progress”. If we have something that we’re improving at, it gives us something to be excited about, something to look forward to, and something to find purpose in.

I look forward to reading, learning, and sharing more with you soon!

Thoughtful Thursday posts, Uncategorized

Thoughtful Thursday – November 9, 2023

amybenoit

My intention is to post a Thoughtful Thursday column each week and share some of the insights I have learned in the past week. Here are some of the things I’ve learned this week:

Optimal Living Daily – 10 Reasons You Would Benefit From Therapy
  • You feel betrayed by your romantic partner.
  • You feel betrayed by whatever success you have attained.
  • You feel betrayed by your job that has become uninteresting, stupid, and boring.
  • You feel betrayed by your coworkers and business associates who now seem to take more pleasure in your failures than your triumphs.
  • You feel betrayed by your body.
  • You feel betrayed by your health.
  • You feel betrayed by your government.
  • You feel betrayed by your friends and family members.
  • You feel betrayed by your parents for loving you conditionally.

On the cognitive level, a therapist can provide fresh perspectives and help you reframe your current situation so that you can either make immediate changes or accept your state of affairs.

This post from Seth’s Blog this week was a great reminder about setting higher expectations for those you trust:

The power of expectations

The power of expectations

“When we raise our expectations for a student, a friend or a co-worker, we open the door to possibility. We offer them dignity and a chance to grow. We are offering them trust.

But if we become attached to those expectations, if the expectation unmet leads us to distress or unhappiness, then that attachment undermines the very reason we created the expectation in the first place.”

Inside Out Money – Reflections on one year of early retirement

If you want an extraordinary life, you must build it. Noone is handing out extraordinary lives.

ON SUCCESSS:

  • In retirement, no one is measuring your success except for yourself. There won’t be an annual performance review.
  • New challenges can be projects and not a means to make money.

ON STRUCTURE:

  • “For your entire life, much of your life was dictated by some kind of authority or schedule you didn’t create. When we have full autonomy over our time, many of us find this disorienting.”
  • “I miss the structure work provided and the feeling of doing something productive and constructive, but I don’t miss work.” “I feel like I’m able to be myself more.”
  • “I feel less stressed from not working. With less stress, I am able to be more physically and emotionally present.”

ON STRESS:

  • “I still take on too much and burn myself out. These are personality traits.”
  • “I still find things to stress about and be anxious about. I still procrastinate more than I should. I still deal with analysis paralysis. These are part of my personality.”

ON TIME:

  • “I am still trying to figure out how to spend my time intentionally and what I want to do with my time.”
  • “I want to spend more time on myself and the things I want to do.“
  • “I have spent too much of my first year like I have spent the last twenty years. I am doing too much for other people and doing too much to feel accomplished.”

ON LIVING YOUR BEST LIFE:

  • “I need to make some very thoughtful and active changes to make the life I want to be living.”
  • Many people think that when they retire and have the time, they will be living their best life. Just having time alone is not going to fix that. You can fill your time with all kinds of things, but it takes deliberate work and action, and you must be intentional about using your time. Having more time will not automatically change you and change all of your bad habits or make you live your best life.

ON EXPENSES:

  • “Our expenses were more than expected our first year in early retirement due to travel and health insurance/health expenses.”
  • More time on your hands can easily result in spending more money. People sometimes spend more money when they are retired.
  • “Our overall net worth has increased since retiring last year due to investments performing well.”

Auto insurance:

  • liability insurance – covers you when you are responsible for others’ injuries or property damage that you cause with your car. It only pays up to maximum limits covered in your policy. You are responsible for paying the amount over the limit out of your own pocket.
  • Comprehensive and collision insurance – often come as a package deal – insurance pays to fix or replace your car after it’s damaged, even if the damage was your fault. Collision and comprehensive coverage often come with a deductible – the amount you pay before your insurance provides coverage. Ex: $500 to $2000
    • Insurance companies only pay UP TO the fair-market value of your car. If you drive an older car and have plenty of cash on hand to repair or replace it if you have to, you probably don’t need to have comprehensive and collision insurance. However, lenders and lessors require you to have this coverage if you are financing your car.
  • Uninsured/underinsured motorist coverage – often a package deal – your insurance pays you for medical expenses or damage to property caused by a driver who is uninsured or underinsured. It’s like a reverse liability insurance.
    • 20 states require drivers to have this coverage. Some estimates are that 1 out of 8 drivers don’t have insurance!
  • Outside what your state requires you to have, ask yourself: Can you afford to pay out of pocket if your car gets badly damaged or stolen? If not, consider collision and comprehensive coverage. Do you drive a lot/are the roads very busy? If so, the risk of getting in an accident is higher, so you will want liability and uninsured/underinsured motorist coverage. Who’s on your policy? If you have young drivers, get better coverage due to the risk of accidents.
  • If you buy the cheapest car insurance, you’re basically buying your state’s bare minimum coverage to drive. If you get in an accident, you will likely need to pay a lot of money to cover what your insurance doesn’t. Cost can really stack up in nightmare scenarios.
  • Car insurance can be expensive.  The average cost of minimum coverage for a good driver with good credit is $57/month. Full-coverage insurance costs about $180/month, on average.
  • Car insurance rates have gone up 19% in the past year. Save money on insurance by shopping around. Only about ¼ of customers shop around at least once a year!
    • Ask your insurance company about discounts. You can get discounts for being a good driver, paying a policy in full, not driving much, etc. You can also raise your deductible to save on costs. You just need to make sure you have the cash on hand to cover the deductible. Make sure you aren’t paying for coverage you don’t need; if you have an older car, you might be able to drop comprehensive and collision insurance. If you have several vehicles, you could drop rental car reimbursement coverage.
  • There are several different factors that go into pricing policies: your driving record, your age, where you live, your credit score, etc.

Home insurance:

  • dwelling coverage – typically pays for damages caused by sudden or accidental events only, not things that happened slowly over time or that you could have prevented through maintenance. Floods and earthquakes are often excluded from normal dwelling coverage unless you purchased those coverages.
  • Dwelling insurance matches the replacement cost of your home and attached structures – if you had to rebuild your home from scratch. Make sure your dwelling coverage is keeping up with inflation and rising building costs by checking with your insurance company from time to time. Also, keep them updated of any major renovations, such as a kitchen. For a more hands-off approach, you can add an inflation-guard to your policy to adjust your coverage automatically to keep up with inflation. Many people are underinsured and find out when it’s too late.
  • Personal property insurance – will pay to replace the stuff you own if it’s stolen or destroyed. Your belongings are typically covered only if you name them specifically in your policy!  Your coverage may have special limits on items, such as jewelry and firearms.
  • Personal liability coverage – covers injuries on or off your property/damage you accidentally cause to someone’s stuff. Ex: if your dog bites someone, someone trips on your pool deck, etc. It only pays up to a certain limit, which you can increase or decrease.
  • Loss of use coverage – pays for living expenses if your home is unlivable and being repaired after a covered loss, like a fire. It pays for hotel expenses, food, storage costs, etc. It only pays for you to maintain your normal standard of living.
  • 12% of Americans don’t have homeowners insurance! Homeowners insurance is required if you have a mortgage.
  • Insurance companies are losing money and increasing rates.

Shopping for car and home insurance can become fun to save money and compare rates. The internet makes things easier to compare rates, but when you compare rates, try to compare similar coverage amounts. If you don’t want to do the legwork yourself, you can use a broker. Some brokers require a small fee for their help.

One of the books I read in the past week is “101 Things I Learned in Culinary School” by Louis Eguaras with Matthew Frederick. Here are some of the most interesting things I learned. I will share more in a future blog post.

“Guests seek more from a dining experience than to satisfy their appetites: comfort, prestige, value, relaxation, artistry, social fun, or perhaps just a good place to watch the game. Be clear why customers choose your restaurant. Prioritize what they most need.”

Knife cuts:

School teaches you how to cook. Experience teaches you how to be a chef. A cook follows a recipe; a chef can intuitively modify a recipe. A cook knows how; a chef knows why.

A pepper’s name often changes when dried.

I look forward to reading, learning, and sharing more with you soon!