The Importance of Understanding Auto Insurance (And How It Could Save You Money)

understanding auto insurance

Having auto insurance is one of those essentials you need if you drive…legally, that is. Not just that, but having auto insurance does protect you and your vehicle should anything happen, whether it be a head-on collision or a hit-and-run. You need to see your car as an investment because it is. Thus, understanding auto insurance will be wise so that you know you are getting the best deal (and not just emptying your bank account). Here’s how you can save money while still ensuring you’re protected:

Understanding Auto Insurance

Compare Before You Buy

Similar to the concept of “try before you buy,” you want to always compare quotes side-by-side. In fact, you do not even need to wait until you are buying to do a comparison. Many companies would be more than happy to go over cost-savings with you based on your current insurance provider. But, if you don’t want to deal with a salesperson, do the comparison online.

For most providers, they will offer to email you an initial quote first based on the information you filled out. Once you do this for multiple companies, you can see the best route to take. Some sites, like Progressive, will even do a comparison side-by-side for you, which is a smart sales tactic for them. For a faster look at different quotes from various companies, though, NerdWallet offers a free online tool for you to do just that. Check it out here.

Don’t Go Without It

Every state makes it a requirement for drivers to carry auto insurance. Even motorcycle drivers need to have insurance. If you get caught without it, the costs could be much higher than your monthly premium. If you were to get into an accident, the state may go after your personal assets, you may have higher insurance costs, a suspension of your license, and so on. You can learn more about these penalties at DMV.org.

Be Cautious About Loaning Your Car

Insurance policies go after the vehicle and not the driver. This means that in an accident, they pursue the vehicle at-fault for costs, and whoever owns the car and is the policyholder is responsible for those costs. So, even if you were not the one driving your car, your insurance has to cover it, which will lead to higher insurance rates for you to pay.

More Miles, More Money

The more you drive on a regular basis, the more money you’ll have to pay for an insurance policy. They base this on the increased likelihood of an accident to take place with the amount of times your car is on the road. In order to avoid this increase, try to periodically utilize public transportation instead whenever possible.

Look for Policies With Accident Forgiveness

When you’re in an accident, your premium will typically increase, especially after multiple accidents in a row. That is, of course, unless you have accident forgiveness in your plan.

Put Multiple Cars On One Policy

Many auto insurance carriers have “bundle plans” that allow you to insure more than one car under one policy. This can help you save money rather than going through multiple companies.

Ask About Military Discounts

As a thank-you for serving our country, many companies will give a military discount for those currently enlisted or veterans. Be sure to ask and see they have any options for you.

Overall, understanding auto insurance helps you to save money (or avoid wasting it) by knowing what to look for or mistakes you can prevent. Hopefully, with this knowledge, you’ll be able to find the best coverage and plan for you.

What would you add to the list? 

The Effects of Financial Stress on Marriage: Psychological and Physiological Impacts

effects of financial stress on marriage

Marriage is a sacred bond between two people that love one another. It takes time, hard work, and dedication to really make it work. Unfortunately, outside elements sometimes take a toll on a marriage, causing couples who once vowed to make it through sickness and health to drift apart. Often times, money plays a large role as one of those elements. So, what are the effects of financial stress on marriage? How does it impact us psychologically and physiologically?

The Effects of Financial Stress on Marriage:

No matter what your social status is or your demographic, none of us are safe from the grips of the pressures that weigh on our relationships. Marriage, in particular, is arguably one of the hardest relationships to maintain in our lives.  Not only does compromise come into play but money does as well. From budgeting to spending, these decisions can make or break your relationship. But, what are the actual effects of financial stress on marriage?

Psychological Impact:

According to the American Association for Marriage and Family Therapy (AAMFT), financial distress can have destructive effects on not only the married couple but their children as well. Money issues can cause feelings of failure, tension in the household, and overall negative behaviors that trickle throughout the family. Common psychological effects, the AAMFT states, includes but is not limited to:

  • Anxiety
  • Depression
  • Overwhelming levels of stress
  • Feelings of detachment
  • Confusion
  • Alcohol or drug abuse

Generally, this financial stress feeds into feelings of feeling incapable and developing unrealistic expectations of ourselves. If left alone, these effects can escalate and turn what was once a healthy and empowering environment into a dark and desolate place.

Physiological Impact:

Financial stress also hurts us physically. In a 2003 Ohio State University research paper by Theodore F. Robles and Janice K. Kiecolt-Glaser titled, “‘The physiology of marriage: pathway to health,” studies show that social relationships have an impact on our long-term health, especially in terms of marriage. When in a loving, positive relationship, mortality rates and illness have been shown to decrease, while these numbers increased for those in stressful marriages. Marital stress, brought on often by economic hardship, can affect the body in three main ways, the research finds: cardiovascular, endocrine, and immune systems. Therefore, physiological issues that may arise from such may include the following:

  • High blood pressure
  • Upset stomach
  • Nausea and diarrhea
  • Compromised immune system
  • Higher levels of stress
  • Irregular production of hormones
  • Over or under eating

When this happens, we may not understand why our body is reacting to stress this way, and we may try to play the blame game. However, it’s important to remember that instead of allowing ourselves to adapt to this way of living, we need to fight it. What can we do?

How to Fight the Negativity Financial Stress Causes on a Marriage:

When you first get married, you likely have an excellent perception of your spouse, Benjamin R. Karney of the American Psychological Association wrote in this 2010 article. Over time, however, that perception can dwindle, depending on how positive you are able to stay about your relationship. This, Karney writes, is what happy couples do; they are able to turn their spouse’s shortcomings into explanations of a bigger picture. He uses the example of defining your significant other’s distance one evening as a result of a bad day at work rather than a lack of interest in you.

Unfortunately, long periods of stress can still tear apart even the strongest couples. To combat this, keeping financial stress as low as possible will help to eliminate one more element that can be harmful to your marriage. A few ways to do this are:

  • Recognize your own faults/contribution to the financial issues. Instead of placing blame, take a look outside of yourself and see how you might also be contributing to any monetary problems happening in the household.
  • Talk to your partner. Although conversation about money (budgeting, the what-ifs, etc.) should ideally happen prior to walking down the aisle, it is sometimes still not enough to keep the strain away. Have recurring conversations with your spouse about the budget and managing the money, and see what you can do (together) to make positive changes.
  • Get it down on paper. Karney recommends what he calls a Financial Performance Improvement Plan, where you identify two to three specific setbacks with money and create a solution for each. Be as specific as possible and create a deadline to ensure follow-through. Repeat as much as necessary until you have a potential solution for each money problem.
  • Don’t forget to nourish the relationship. Just because you have financial stress does not mean you need to neglect the emotional aspects of your marriage. As you try to improve your situation, consider cheap date nights or weekend getaways that fit your budget.
  • Talk to a therapist. You should consider talking to a therapist, either together or separately, to overcome any of the psychological and physiological impacts that may have already begun to take place from the effects of financial stress on marriage. This is especially true if you are having suicidal or hopeless thoughts and have a hard time feeling motivated to work and so on. Being healthy and taking care of yourself is extremely important in maintaining wholesome relationships both within and outside of your marriage.

Anyone can be a target to a marriage dealing with economic issues. Financial stress does not have to mean a lack of funds; it can also mean not agreeing on how to spend the combined income. It’s OK to ask for outside help from friends and family members to see how they may be able to relate or what input they can provide as an outsider. Sometimes, the simplest solution is taking a look outside of ourselves so that we can help ourselves.

What is your take on the topic? What advice would you add? 

T Harv Eker’s Net Worth

t harv erker's net worth

Going from $0 to millionaire is already a challenge, so to do it in two and a half years seems almost like a miracle. That is exactly what motivational speaker and author T Harv Eker claims he was able to do, according to the biography on his website. Although numbers vary, T Harv Eker’s net worth reportedly stands at roughly more than $3 million. So, how did he accomplish such success in his life?

T Harv Eker’s Career

Eker always had a strong work ethic. Coming from a low-income home, he began working at the age of 13. Throughout his teenage years, he would deliver newspapers, scoop ice cream, sell suntan lotion at the beach, and so on. He dreamed of becoming a millionaire, and so, during his time in college, he left his studies at York University to pursue his ambitions.

With a variety of jobs under his belt, he started several different businesses, but they did not work out. Life took a temporary turn for the better, though, when he opened a retail fitness store in North America, which he expanded to 10 different locations in only two and a half years then sold a portion to a Fortune 500 company, his website states. Although the sale did make him a millionaire, mismanagement of his money led him to lose his fortune in less than two years.

After his financial loss, he began to study people’s relationship with money, which led him to develop theories, such as his “Millionaire Mind” concept, he wrote in his New York Times best-selling book, Secrets of the Millionaire Mind with over a million copies sold.

Sources of Income

Along with his book, Eker is a motivational speaker and developed programs that help others learn how to be successful through financial courses he created. These include but are not limited to Life Makeover Coaching, Million Dollar Business Secrets, and The Wealthy Marketer. These mentoring and coaching programs range from a one-time payment of roughly $300 to $500 to about $300 per month for the more involved courses. He also speaks at events and produces seminars, sharing his knowledge of obtaining (and keeping) your wealth.

t harv eker seminar

Additionally, he formed the seminar company Peak Potentials Training, which was then acquired by event production company Success Resources, according to the company’s November 8, 2011 press release. Eker, however, continued to support the operations of Peak Potentials.

Eker also wrote another best-selling book called SpeedWealth, which was self-published.

T Harv Eker’s Net Worth

The above resources brings T Harv Eker’s net worth total to an estimated $3.5 million, according to this source. With his reputation as a money expert still to this day, his net worth is likely to continue to rise as he continues to sell his online courses through his website and speak at events. He also continues to offer free trainings, which helps to lead to an increase in sales for his programs.

Eker is proof that you can go from zero to millionaire with perserverence, research, and good old-fashioned hard work. He is also proof that you can easily lose your wealth by not managing your money.

See another celebrity net worth article here

 

Photo credit: Risorse della Mente