The American comeback is in full swing. The stock market seems to hit a new record every week, unemployment continues to fall significantly and the overall economic forecast looks positive. To make sure you are prepared I’m recommending a review of some personal finances that are being affected by the Great American Comeback.
Here are my tips:
- Adjust homeowner’s insurance. The price for homes just seems to go higher and higher. Be sure to adjust your homeowner’s insurance to the appropriate value. It’s very likely your home has significantly increased in value. Zillow predicted homes will increase by 8% in 2021. Moreover, you might have modified your home which helps drive up your value or you bought jewelry or other high value items. Make sure your homeowner’s insurance policy reflects the price increase and any new purchases.
- Review your life insurance and trust. Be sure to update your beneficiaries or add new coverage if needed. If you haven’t reviewed your trust in a long time or don’t have one I’d recommend it.
- Check your credit and fix any discrepancies. You can check your credit at all 3 major credit agencies for free. Inflation is a major concern in this economy. Make sure you can take advantage of these super low interest rates if you need to.
- Adjust any excess cash you might have built up over the pandemic. This is a little odd but in high inflation your cash is actually losing money. Don’t just have it sitting in a checking account, low interest CD or under your mattress. To compound the problem the US Dollar has lost value during the pandemic. Several goods have risen sharply, gasoline is up 49.6% from a year ago, lumber is up 124% and in April we had the highest rate of inflation since September 2008.
- Revamp your budget. You can start with adjusting all the new streaming subscriptions you signed up for and mobile apps. If you aren’t using them then drop them. With high inflation that money is likely going to be needed for other areas that are over budget. Also, budget for more spending on dining out, fuel and other pre-pandemic expenditures.
Please email if you have any questions or wish to discuss in more depth.