Castles & Moats

Insurance and Investment Planning...Simply Explained

Finding Margin For Savings2018-07-05T21:25:21+00:00

Chapter 13

Finding Margin For Savings

Let’s go look at your budget…remember, you shouldn’t be reading this chapter until you’ve completed your budget. We can’t find margin in your cash flow if we don’t know where it’s going.

There are a couple of places I always look to find available savings. The first is low deductibles on auto, home, & health insurances. Lets’ think about this. The lower the deductibles, the higher the annual premium, but the less we should come out of pocket IF we have a claim. Does that make sense to you? Because it doesn’t to me!

As an example, you’ve been carrying $100 comprehensive & $100 collision deductibles for the last 10 years on your car, and the annual premium is say $1000. You have not had a claim for the entire period. Hypothetically, if you changed your deductibles to $1000 comprehensive & $1000 collision the new premium is now $700/year. Guess what? We’ve just found $300 that comes back into your life. What could you do with those new dollars? Save them? Purchase more protection to build your moat stronger? Pay off debt?

Next example in your budget: entertainment & eating out. We all do it, we all enjoy it, we are entitled to some fun after a hard week’s work…but do you have to do it so much?

There’s an easy place to recapture $$$ and put them back into your life. I DIDN’T SAY STOP GOING OUT…I said be smart about it. Example: I love a good Kentucky bourbon…nothing more enjoyable. When I have one out with dinner the bill tells me it’s about $10-12 for that bourbon. However, when I have one at home with my friends, the entire bottle only costs me $30-40…

The cost of going out is expensive, isn’t it? The other example is “retail therapy”. As I said in the beginning of this section, there’s a huge endorphin rush for spending $$$. Unnecessary spending will totally blow your budget, your financial plan, and your life if you’re not careful. Hopefully everyone reading this can say AMEN!

By adjusting our habits, our behaviors, and our belief systems on how money works, we could be “recapturing and redeploying” thousands of dollars a year. So now that we’ve recaptured those dollars leaving our lives unnecessarily, how do we redeploy them? Keep reading…

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If you’re in need of auto, home, landlord, or life insurance, I look forward to getting to know you and becoming your partner in protection.

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