4 Non-Negotiable Expenses

Posted September 7th, 2017

For young people just beginning their careers, disposable income is hard to come by. Especially if you’re paying off student loans, and recently adopted a rent or mortgage payment. It’s hard to know what’s financially necessary and what can wait until you’re a bit more secure.

Here are 4 expenses we believe are pretty important:

Health insurance
When you’re young, it’s hard to imagine yourself needing huge medical coverage. But we get no guarantees in life. And a 2-day hospital stay could cost as much as $25,000! Even non-life threatening injures such as a broken leg may cost you close to $10,000. If your employer offers a healthcare plan, take advantage of it.

Life insurance
Thinking about “what ifs” are no fun. Especially when you’re just starting out in life. But it’s necessary to consider the ways your loved ones would be protected should something happen to you. Today, the average funeral costs around $12,000. Would your family be left with that cost? What about those outstanding debts? Life insurance offers peace of mind.

Emergency fund
According to a survey from Bankrate.com, 63% of Americans don’t have enough savings to pay for a $500 emergency. An unforeseen medical bill, car damage, or emergency home repair could you’re your entire budget if you aren’t prepared. It’s important to have an emergency fund to cover these unanticipated financial burdens.

Financial advisor
Having a financial advisor is a good way to reduce stress and offer you some guidance as you begin exploring investments and saving for the future. Your retirement may be decades away, but thinking about it today will be one of the best financial decisions you make.

Financial Advisor, Phil Cruikshank, exclusively serves the credit union's membership through Earthmover Investment and Retirement Services. Phil meets with members to evaluate their financial situations, offer recommendations, and coordinate investment and insurance choices.