Did you know, the average household “owes 20 percent more than it makes each year?”1 With the current financial crisis, that percentage may even increase as families go deeper into debt just to maintain their lifestyles.
Primerica recognizes that education is the first step toward helping families learn to develop a healthier financial life. We believe a good understanding of how money works is key to long‑term success. These three tips can help you get started.
1. Avoid the revolving consumer debt trap.
Most credit card debt is revolving debt. Because of the way interest is calculated on revolving debt, it’s hard for you to know exactly how long it will take to pay off your balance. All that interest can add up to big bucks along the way!
With fixed debt, you make payments over a set span of time. It’s easy to tell when the principal will be paid off and – even with the same interest rate and monthly payments – the pay off date is usually much sooner than with revolving debt. Consolidating revolving debt into one fixed rate loan can potentially eliminate those debts sooner and reduce your monthly payment.
2. Understand compound interest.
With a revolving debt account, compound interest can eat away at your financial health. But when you use compound interest in your favor, it can really help savings grow. The more you save, the more interest you can potentially earn on that money.
3. Make a lifestyle change.
When it comes to reducing debt, little changes can make a big difference. By separating “wants” from “needs,” and making the “needs” the priority in spending, you can begin saving toward your future.
It’s a good idea to have periodic checkups with a financial services professional to make sure you stay on track for your goals. Primerica offers a FREE Financial Needs Analysis that is designed to highlight problem areas and present strategies to deal with them.
In today’s economy, many families are worried about layoffs, foreclosures and mounting debt. They’re looking for ways to cut costs, save more and make smarter money choices for their future.
Primerica, believes one of the first steps toward getting on track for a bright financial future is to create better spending and saving habits. To help you get into the mindset of making better money choices, Primerica presents three easy ways to curb spending.
1. Track purchases. Little purchases made every day can add up to big money at the end of the month. Keep track of expenditures by either writing them down in a notebook or purchasing budgeting software. You might be surprised at just how much you didn’t realize you were spending. 2. Minimize ATM visits. ATM withdrawals can add up quickly if you aren’t tracking them. It’s easy to keep pressing that withdrawal button and even taking out the minimum $20 at a time can add up quickly. The best plan is to set a limit on withdrawals per week and stick to it. 3. Cut spending by small amounts first. Breaking the over‑spending habit isn’t likely to happen overnight. Start small, say reducing spending by 10%. Once you get used to that adjustment, you can work your way up to a more aggressive cost‑cutting strategy.
Discretionary spending (e.g. eating out, entertainment, movie rentals, etc.) isn’t a bad thing, but over‑spending – particularly in times of economic upheaval – can put you into a precarious position if debt becomes too high or if you are laid off.
As you learn to budget better and spend less, the next step is to start socking away all that extra un‑spent cash. Primerica’s free Financial Needs Analysis offers a comprehensive snapshot of your finances and presents clear strategies for getting out of debt, becoming properly protected, saving more and getting on track for a great future.
The current economic downturn has many families worried about losing their job, struggling to keep up with bills and worried about the future. The outlook seems bleak – 11.6 million Americans are unemployed1 and third quarter 2008 foreclosures jumped 71% over the same time period the previous year.2
Primerica presents four tips to help your finances weather a recession.
Slash and burn bills wherever possible. An easy place to start: auto and homeowner’s insurance. “Some insurers give long‑time customers up to a 10% discount, but that can pale in comparison with the savings from switching insurers. At least once every two years, get a quote from another insurer.”3
Keep good credit. To keep that all‑important credit score attractive, make sure you pay your bills on time, limit the number of credit cards you have and avoid financing more than one big‑ticket item at once.
Boost income. Start a part‑time business or work a few hours a week at a second job to get through a crunch. The Primerica Business Opportunity is a great way to do something enjoyable while earning extra cash each month. You can do the business part time or full time and work at your pace, on your schedule!4
Times are tough, but following these simple tips can go a long way to helping you and your family come out on the other side of the recession with your long‑term financial goals still intact.
Kansas City Star, www.kansascity.com, February 6, 2009
www.CNNMoney.com, October 23, 2008
Money, November 2008
In Canada, the part‑time option is not available in all jurisdictions and, where it is available, is subject to certain restrictions.
For more than 32 years, Primerica has advocated its philosophy of “Buy term and invest the difference.” As for the rest of the life insurance industry, they just keep changing their approach to the marketplace by creating and re-inventing life insurance policies that don’t work.
In the 1970s, other life insurance companies were selling Whole Life insurance.
In the 1980s, Universal life insurance was created.
In the 1990s, Variable Universal Life was created.
In the 2000s, Return of Premium Term Insurance was created …
… and now they are going back to selling whole life insurance again.
Would you put your financial future in the hands of a company lacking a clear direction?
Three decades. One timeless principle. We stand for something!
Primerica has always believed families need affordable protection for today and control over building wealth for tomorrow. Our “Buy Term and Invest the Difference” approach to personal finance puts families in position to achieve their goals in life. We’ve never had to change our approach in the marketplace … because it works!
What I love about Primerica is that it’s made up of real people. People just like you and me. They’ve faced the same kind of financial struggles and have learned the value of knowing how money works. They believe in spreading that knowledge and helping middle market families — families that are usually ignored by big financial companies.
Our representatives offer people simple solutions to tough financial situations. Their mission is to make sure your family is properly protected, help you get out of debt and help you save for the future. Primerica representatives will sit down with you and help you understand how you can get back on the path to financial freedom.
To help people understand what we do, Primerica recently launched a series of videos. These short videos, which can also be found on the Primerica YouTube channel and on Primerica.com, illustrate why we believe in helping the middle market overcome financial challenges and become financially free. We know that people are struggling and are in need of financial solutions. They’re looking for a company who believes in doing what’s right for families. And that’s what Primerica delivers.
With today’s volatile economy, creating an emergency fund isn’t just a good idea, it’s almost a necessity. Currently, 41% of Americans have no emergency savings1, and almost half of workers live paycheck to paycheck just to make ends meet.2
Financial experts recommend having an emergency fund of at least three to six months’ savings. Primerica offers four key tips you can follow to start building a financial safety net.
1. Separate savings. One of the easiest ways families can start an emergency fund is to open a separate savings account or money market fund. Money in this account should not be withdrawn unless a true emergency – such as a major home or car repair, hospital or other large medical bill, etc. – arises.
2. Keep the change. Loose change left over from daily purchases can add up quickly. Make it a habit to save single bills and change and deposit that money into your savings account at the end of each month.
3. Keep paying yourself. As you pay off big debt or credit cards, it’s a good idea to continue to make those same monthly payments – into your savings account!
4. Earn extra cash. Start a part‑time business or work a few hours a week at a second job to beef up an emergency fund. Primerica’s Business Opportunity is a great way to do something enjoyable while padding the bank account. You can work at your own pace, on your own schedule, part-time or full-time!*
Starting an emergency savings account doesn’t have to be complicated. Save what you can and put extra away when you have it. Even starting small can make a big difference in the long run!
*In Canada, the part time option is not available in all jurisdictions and, where it is available, is subject to certain restrictions.
1 Parade, July 13, 2008
2 CNN.com, viewed October 14, 2008
Primerica has been helping middle market families with their finances for more than 32 years. Our company is financially strong and, while other companies are struggling in the current economy, we’re thriving. And that’s not so easy in this economy!
Everywhere you look you see headlines about mass layoffs and company closings. Companies once thought of as “rock solid” are crumbling before our eyes. Not Primerica. Why? Because no matter what state the economy is in, people still need our solutions.
How many companies today can say they’re debt-free? Primerica can! We have no debt whatsoever. Our life insurance companies hold a conservative investment portfolio of $6 billion. Plus, for the last seven consecutive years, Primerica has reported greater than $2 billion in revenue each year.
One of the largest marketers of term life insurance for more than two decades, Primerica’s life companies paid out more than $958 million in death claims in 2008 and have nearly $639 billion of life insurance in force. Want further proof of Primerica’s credibility? Primerica Life Insurance Company (PLIC) and National Benefit Life Insurance Company are both rated “A+” by A.M. Best and PLIC is rated “AA” by Standard & Poor’s. (A.M. Best and Standard & Poor’s are two independent rating firms that assess a life insurance company’s financial strength and ability to meet its ongoing financial commitment to policyholders.)
While other companies are cutting back and struggling to meet their obligations, Primerica is thriving. We’re continuing our three-decade track record of growth, and are on track to dominate the financial services industry.
Primerica Life Insurance Company’s insurance financial strength and claims-paying ability and National Benefit Life’s ratings of A+ by A.M. Best are considered “Superior.” This rating is assigned to companies that, in the opinion of A.M. Best, have a SUPERIOR ability to meet their ongoing obligations to policyholders. Primerica Life’s rating of AA by Standard & Poor’s is considered “Very Strong.” This rating means, in the opinion of Standard & Poor’s, that an organization’s capacity to meet its financial commitment on obligations is VERY STRONG. (National Benefit Life is not rated by Standard & Poor’s.) Primerica Life Insurance Company (Home Office: Boston, MA) is rated by A.M. Best and Standard & Poor’s.
A.M. Best ratings range in order from the highest ratings as follows: A++, A+, A, A-, B++, B+, B, B-. C++, C+, C, C-, D, E, F. Standard & Poor’s (S&P) ratings range in order from the highest as follows: AAA, AA+, AA, AA-, A+, A, A-, BBB+, BBB, BBB-, BB+, BB, BB-, B+, B, B-, CCC+, CCC, CCC-, CC.
Primerica representatives market term life insurance underwritten by the following affiliated companies in the following jurisdictions: National Benefit Life Insurance Company, Home Office: New York, in New York state; Primerica Life Insurance Company (PLIC), Home Office: Boston, MA, in all other U.S. jurisdictions and Primerica Life Insurance Company of Canada. Each company is responsible for its own obligations.
