The Life Insurance Movement ' Over 115 Bloggers Doing Their Part for #LifeAWARE

How do you top a Roth IRA movement that gets tons of the top personal finance bloggers all to write about the same topic on the exact same day?

Duh! You pick a different topic and you do it again.

Or known on Twitter as #LifeAWARE.

For an explanation that includes me breaking it down to Usher, watch the video below.

Can't see video? Click here to watch it.

What Inspired #LifeAWARE?

I've always been passionate in making sure that families have the right amount of life insurance coverage.  Between school plays, soccer games and that little thing called 'life', many families neglect to get the right amount of coverage.  Or worse ' have no coverage at all!

In fact, it's estimated that 35 million households don't have any life insurance.  Did you catch that?

They ain't got nothing!

35 million households are batting .000 on their life insurance.

For those that do have life insurance, it's estimated that 58 million households feel they don't have enough.

Now do you see the point of #LifeAWARE?

I've Seen the Pain of Not Having Enough Life Insurance

In my announcement post of the life insurance movement, I shared the story of two widows.

Both were emotionally drained with losing their life partner prematurely.  Life insurance doesn't bring them back. What life insurance does is help make life more manageable after they are gone.

For one of the ladies, she'll never have to worry about money ever again.  She's financially stable and her finances will be the last thing she'll stress about.

Unfortunately, the other is left scrambling to figure out how she's going to pay the bills, manage her debt, and if she'll ever really be able to retire.  Why the difference?

Her husband was part of the 58 million that did NOT have enough life insurance.

What makes the above story so sad is that it could have and should have been avoided.

2 Common Mistakes to Avoid

There are going to be plenty of awesome posts joining the #LifeAWARE movement that share their personal reasons why life insurance is important to them.   I don't need to inundate you with more of the same.  I did want to leave you with the 2 common mistakes I see when people do buy life insurance.

1. Don't Buy Enough

Face it.  $100k of life insurance is probably not going to be enough life insurance coverage to take care of the house, the cars, the kids, and the debt if something happens to the breadwinner of the family.   I've talked to so many young couples that only have a $50k whole life policy and think they are good.   News flash: you are not.

If you're not sure how much insurance you need to buy, use this nifty calculator to help you figure it out:

2. Buy Insurance Through Work.

This one might be a surprise to many. Why is this a mistake?

Think about it. The average person changes jobs 5-7 times in their career. What happens to your life insurance when you change jobs?

Hint: Just like your old boss, it does not come with you.

That's right. When you change jobs you're at the mercy of your new employer to offer insurance. If they don't, then you'll have to go buy through a third party like an independent insurance agent. Which, you should do from the beginning to avoid this type of situation.

Do you know how many people I've talked to that can't leave their job because they now have some medical condition that prevents them from getting life insurance anywhere else?  Too many.

Go out and buy a 30 year term policy and you've locked in coverage for 3 decades. You can change jobs 15 times in your career and you'll never have to worry about applying for life insurance again.

Review Time

If you haven't reviewed your life insurance in a while, it's time. No more putting off waiting for the 'right time'.

Now is the right time. Your family will thank you for it.

Support the Movement

Are you passionate about making sure others know the importance of having life insurance? If so, we need your help!

Help spread the word and get a chance to win some awesome prizes. Below you'll find a Rafflecopter widget that gives you plenty of ways to bring attention to what #LifeAWARE is all about.

a Rafflecopter giveaway

How Much Life Insurance Do You Need For Stay At Home Mom or Parent?

With the arrival of our second child, my wife and I have revisited how much life insurance we need.

Then we had our third son, and she quit her job, so now we're trying to determine the amount that we need on her to make us comfortable.

We're very fortunate in the sense that her parents live close to us and are willing to watch our kids when we need them.  (Thank you Papa and Gigi!)

Any parent can easily recognize what a great economic benefit that is, in addition to an emotional benefit.  Some parents either need to stay at home to raise their children or they choose to.

For those that do decide to be a stay at home parent, that doesn't mean that life insurance is not needed for them.

Stay at home parents are often multi-taskers who cook, clean, do the laundry, pay the bills, go grocery shopping and more yet they are traditionally undervalued. My wife even helps with my blog and edits my videos! 

Imagine how much money a stay at home parent would make if they were paid for their work.

Stay at Home Mom's Salary

Replacing the contributions of a stay at home parent would be very expensive, especially considering the number of years it takes to raise a family. If we take the $115,432 average annual compensation over 20 years, the economic benefit provided would be $2.3 million. As you can see, this is why it makes sense to consider life insurance for the stay at home spouse.

Life insurance can greatly benefit a family going through the very difficult period of adjustment after the loss of a parent and beyond.

When calculating how much life insurance coverage a family should purchase for a stay at home spouse, look at how much it would cost to pay others to perform functions currently handled by them.

When I think about some of the services that my wife performs they include being a nanny, a chauffeur, cook, house keeper, tutor, nurse, and bookkeeper.

In addition to having to pay for help in these areas, a family that has lost a parent may also have an increase in other expenses.  I know if my wife were not here, I would be destined to eat out more and buy more expensive convenient foods.  That's not including the laundry and cleaning the house.

I, like most other men, would be hurting.

It's likely that most couples haven't thought through the potential repercussions of not covering the stay at home parent with life insurance. But, as you can see, taking life insurance out for the spouse that works at home is equally as important as taking out insurance on the main bread winner.

How Much Life Insurance Do You Need

The amount needed for a stay at home mom will depend greatly on your geographic location, number of children you currently have and expect to have, the breadwinner's salary and job security, and the overall health of that parent.  As a reference, you can check out a recent post I wrote that discusses how much life insurance you need to buy.  As stated in that post, be sure to get several quotes from different carriers and be sure to stick to term life insurance.

Losing a Loved One

We need to realize that losing a parent is difficult enough and adding financial hardships to the mix can make it much more painful. Life insurance coverage can help insure that the surviving parent would not be forced to work long hours or to take a second job to pay the bills.

But instead, put more focus on managing the household and caring for the children during a critical time in their life. By assessing your specific requirements and preparing accordingly, you can help yourself make the proper life insurance decision so that the rest ' so they can rest easy knowing that family financial needs be met well into the future.

photo credit: kylesteed

Tagged as: life insurance amount, life insurance stay at home mom

How to Save Money on Professional Conferences

Deciding whether or not to go to a professional conference can feel like a terrible Catch-22.

On the one hand, the connections and skills you gain through conferences can give you a big leg up on your career.

On the other hand, the price tag for the conference, travel, lodging, food, and other associated costs may be prohibitive, especially for freelancers and other independents who can't ask the boss to foot the bill.

Luckily, it is possible to cut down the costs of attending a conference.

Whether your company has cut the conference budget or you are just starting an independent career, here are some ways to keep conference costs low while still taking advantage of the opportunity to network:

1. Be an early bird.

Many conferences offer discounted prices for those who purchase their tickets within the first few weeks that they are on sale. Just stay on top of your industry news, so you know what conferences are scheduled and when.

Even if you miss the cutoff date for the early bird pricing, you may still be able to get a discount. Many conference organizers will offer discount codes on sites like Mashable and Meetup to help keep the event affordable for 'smaller fry' attendees.

2. Speak at the conference.

Conferences are always in need of speakers and panelists to offer insight and expertise to the attendees, and so speakers not only receive complimentary attendance, in a few cases they will also get paid. If your goal is to increase your visibility in your field, you can't ask for a better opportunity than to speak to your peers.

Editor's note: I can vouch for this! I'm speaking at FINCON and at the Financial Planning Association national conference this year and doing so had landed me a free conference ticket. I was even able to get my airfare and hotel paid for on the latter one. How? I asked.

3. Take advantage of group rates.

If you need to stay at the conference's hotel, make sure you ask about group or discount rates for conference attendees. These events are generally held at fairly large and expensive hotels, so discount rates can save you a bundle. In addition, rooming with other attendees is a good way to lower your lodging costs and possibly make new friends and connections in your field.

4. Don't stay at the hotel.

If staying at the hotel on a discounted rate and with a roommate will still strain your budget, remember that you do not have to lodge there just because it's where the conference is. While staying elsewhere might curtail some of your time to network (or party), it can also save you enough money to make it possible to attend.

Search for local hotels with cheaper rates, or stay with a friend or family member who lives in the area. You could also find a local resident who is willing to let you stay on their couch or in their guest room through such websites as airbnb.com and couchsurfing.com.

Another possibility on hotel savings is to only attend local conferences that you can reach from home. This will not only save you money on lodging, but also on travel and food costs.

5. Take advantage of the meals.

Most conferences will offer lunch, and many will offer breakfast as well. Add in the provided snacks and the free food handed out by exhibitors, and you should be able to eat pretty well while you're there, and even throw a couple of pre-packaged snacks in your briefcase for later in the day. Those will be helpful when hunger hits after hours and you're tempted to order a pizza to your hotel room.

The Bottom Line

Don't lose out on opportunities to grow your career because of the cost of professional conferences. By using savvy money strategies, almost anyone can afford to attend.

This guest post comes from Jason Topp of  One Money Design.

Get to Work

Do you have trouble keeping a job?

If so, I might have found the document series for you.

The Sundance channel is releasing a 8 series documentary titled 'Get to Work' that walks you through a 'boot camp' like training program to get people the skills they need to get a job and keep it.

Filmed in San Diego, the documentary follows a program named 'STRIVE' which is a program designed to train students within four weeks and get them into a paid job as soon as possible.  STRIVE's goal is to extinguish any of the emotional barriers that are preventing you from getting work.

If you could attend a 4 week program that would get you the job you need (and help you keep it!) would you be interested?  Exactly.

What amazed me about the program is that they have the numbers to back it up.   Since its founding in 1984, STRIVE has graduated nearly 50,000 individuals from its core training programs across the country, with over 3,000 graduates and over 2,200 graduates placed into jobs in 2011. Notably, many of the STRIVE instructors are graduates of the program themselves.

What I loved about the documentary is that it reminds me a lot of basic training.  The program seems to test people and push them to their limits.  Most of these people have no jobs, no direction, and seemingly no chance. It's a high-stakes make-or-break moment and, for most of the students, this is their last crack at a real future. But it doesn't come easy: as they push their students to learn workplace skills that will land them a job, the instructors contend with those who have never learned anything other than bad attitudes and bad behavior.

If you've struggled holding a job down, this might be the series you need to watch to get your butt in gear. Check out the Sundance Channel this month for the premiere.

How To Make Money Management Stress Free

For most of us, stress and financial matters seem to go hand in hand.

For the vast majority of people that I speak to, the thought of bank balances and interest rates, limited incomes and mandatory deductions is enough to bring them out in a cold sweat.

And it's hardly surprising when you consider the current economic condition we've been plunged into!

Whilst the pomp of the Olympic Games might be doing something to help us forget about our dwindling finances, the fact remains that personal money pots are shadows of their former selves.

Managing your money has therefore become a prime concern and, as a financial advisor, it is something I routinely offer guidance on.

While I can promote the benefits of choosing the right savings account till I'm blue in the face, what you really want to know is how to make money management stress free.

Well, here's how:

Track payments

The fundamental part of any form of money management is tracking payments and transactions. Despite this basic fact, you would be surprised at the number of people I speak to who fail to keep a record of what their money is doing.

Whilst some may claim 'ignorance is bliss', when it comes to your money nothing could be further from the truth. If you have no clue where your spending your money each month, it will eventually catch up with you.  This means keeping invoices and receipts and marking them off of bank statements each month as well as keeping a track of all monthly outgoings and incomes.

Interest rates should inquired about when possible so that you know exactly how much you're earning on investments or repaying on credit.

Ultimately, knowledge is power and the more you know about your finances the more control, and the less stress, you'll feel.

Budgets are sexy!

Budgets are in, but don't just take J. Money's from Budgets are Sexy's word for it. There has to be some form of monitoring where you're money is going.

Of course, watching what your money is doing is not enough and you need to take proactive steps.

The easiest way to make money management stress free is to budget responsibly ' this means setting an attainable amount of money to live off.

I've lost count of the number of people who have spoken to me about their overly optimistic goals with regards to money.

In an ideal world it would be great to save more than 50% of your wages, the truth is that this will never be a reality. (Please prove me wrong).

It's hard for me to convince people to save at least 20% towards retirement!

To reduce your stress levels, set your sights in reality and alleviate the pressure you've placed upon yourself.

Looking for an easy way to budget that's actually cool?  Take a look at You Need a Budget (YNAB).

Seek advice

Just because you're dealing with personal finances doesn't mean you have to deal with them alone. Seeking advice is highly recommended (well, it is my profession after all) and even I use the expertise of others to ensure I offer the best guidance.

For anything IRA related, my first and only stop is Ed Slott's IRA forums.  I've ventured there with the most complex IRA questions and have always left with the answer I needed.

If I've ever needed greater clarification on credit scores, Phil Tirone from 720CreditScore.com is my go to guy. Period.

If I need an update on the latest insurance market news then Lloyds of London is another great resource.

The point is: don't go at it alone. 

Focus on your strengths and align yourself with the experts or resources that you need to handle the rest.  The result?   A whole lot less stress in your life. 

Do You Need Renter's Insurance?

One of the mistakes that many non-homeowners make is the idea that they don't need some sort of insurance for their dwelling. Many renters neglect to pay money for renter's insurance ' and end up regretting it.

I originally thought that renter's insurance was unnecessary as well. As newlyweds in an apartment, my husband and I didn't even consider renter's insurance. When we asked an insurance-agent friend about auto and life policies, he said that we should get renter's insurance as well.

It seemed a little strange to us, but he explained that renter's insurance was a good choice.

You Have More than You Think

First of all, we discovered that we had more than we thought. We didn't think that, as college students, we had much in our apartment worth insuring. The truth, though, is that we had more than we thought. We had a TV, and a TV nice TV stand. We had a bed. And, of course, we had a computer. There were various other items as well. We were surprised that, even though most of our possessions were fairly modest, it still added up to more than $2,000 to replace everything. And we knew that we would soon be adding baby items to the mix, boosting the cost of replacement.

That amount seems rather modest right now, years later, but at the time, living off wedding present money and student loans and grants, the idea of replacing more than $2,000 worth of stuff was horrifying.

Landlords, of course, have insurance to protect them. But the protection the landlord receives doesn't cover renters. If you want the contents of your apartment to be protected in the event of a disaster, you need to get the coverage yourself. Renter's insurance can be just the thing.

Renter's Insurance Isn't Very Expensive

One of the great things about renter's insurance is that it doesn't cost very much. You can get decent coverage without cheaping out.

For a few dollars a month, you can cover the cost to replace the contents of your rental home or apartment.

It's well worth it, especially if your rental is full of electronic gadgets.

Additionally, in many cases your insurance agent can get you a tri-line discount with the help of renter's insurance. Combine renter's insurance with your auto insurance policy and life insurance policy, and you could get a discount for having multiple policies with one company. That could save you in more premiums, while at the same time providing you with the peace of mind and protection.

Renter's insurance is a must for most people. Add up how much it would cost to replace the items in your rental, and then determine whether or not it would be easy to pay the cost of replacing those things. If you know that you would be overwhelmed with the costs, ask about renter's insurance. It's usually worth the money, and if a catastrophe ruins your rental, you'll be glad that you have the insurance money to help you replace your stuff.

4 Super Easy Ways to Reduce Your Credit Card Debt

Have you struggled with credit card debt and finally had enough?

I can relate. In college I foolishly charged almost $10k on several credit cards and bought a bunch of crap.

It was beyond ridiculous.

Luckily, I meant my soon to be wonderful wife and she helped me to realize the error in my ways.

Together we developed a plan and in a few years, I was completely debt free. Holla!

If you struggle with credit card debt, here are 4 easy ways you can reduce that debt today.