Over the last several podcasts, we have discussed the building block of a financial plan and the important of protection planning and emergency fund needs. A question that is asked in regards to starting a financial plan is “Should I pay off my debt before I start a financial plan?” That is a great question and one that needs addressed. My opinion is that starting a financial plan by having your protection planning (Life insurance, health insurance, home and auto insurance) is a priority to attacking the debt issue. Creating an aggressive plan to pay off unsecured debt requires one critical point, and that is you are alive to earn the income to eliminate the debt. What happens if you pass away from an accident or illness without protection in place to replace you and your earned income? Now, you are leaving debt and lack of income because you prioritized debt reduction before protection planning. When looking for funds to cerate the foundation of the financial plan and elimination of debt, we must realize that we may have to give up some luxuries such as cable television, eating out frequently, daily Pumpkin Spice Lattes, car payments, and the newest and greatest Apple I-phone. When we look at our budget, many times we can create the necessary means to create the financial plan foundation and attack debt burdens. I understand reduction in many of the luxuries of our materialistic lives isn’t what we want to do, but it may be necessary to be an obedient steward. If you have questions or need a review of your current situation, please feel free to contact us at 888-226-7614. You can visit our website at www.kingdomplanadvisory.com and arrange a personal consultation online. Please do not be embarrassed by your current financial situation. Take control of it!
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