The District Chronicles

Issue date: 8/9/09 Section: Business

(ARA) - Virtually everyone today is feeling the effects of the current economy; none of us is untouched by it. Here's the good news: if you can anticipate financial changes and develop a sound financial plan, you can protect yourself and your family today, and for many years to come. Achieve financial security by following five basic steps:

Begin an emergency cash fund
1. Create a savings account and resolve to pay yourself first by setting aside 5 to 10 percent of your salary each month.
2. Automatically transfer money from your checking account to your savings so that you're not tempted to spend the funds elsewhere.
3. Aim to save three to six months of living expenses in the account for emergencies.

Pay down your credit cards
1. Credit card debt is the No. 1 obstacle to a secure financial future, and knowing your credit score is essential.
2. You're allowed one free credit check annually with each of the major credit bureaus: Experian, TransUnion and Equifax.
3.. Check your credit score; it determines your interest rates on loans and credit cards, and may help save you money throughout your life.
4..Check your report for errors and report any immediately. Bureaus are required to investigate and correct errors once you report them.
5..If you feel you need further assistance with your credit contact the National Foundation for Credit Counseling at (800) 388-2227.

Create a financial plan using life insurance as the foundation
1. Purchase life insurance. It is the foundation of a strong financial plan and can protect your family during an unexpected turn of events, such as loss of life or loss of income.
2. Educate yourself. Certain types of policies accumulate cash value that can be used for larger expenses, such as college, while others may be used to help create a legacy of giving that can last for generations to come.
3. An insufficient life insurance plan can expose your family to significant financial risks. To learn more about life insurance, call (866) 331-3078 and speak with a life insurance specialist with SBLI USA, a company that specializes in life insurance policies. Or, go to www.sbliusa.com to get a free, no-obligation quote.

Empower yourself by creating a budget
1. Be prudent with your spending. Write down everything you spend each month and cut back on non-essentials.
2. Apply these savings toward reducing your credit card debt. Start by paying off your high-interest cards first.

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