2b  
If you're committed to reaching your goals, then let your goals
make your decisions.  In any buying situation consider your "must
"haves".  Are they  needs or wants? Know how much you can
afford,  whether you can pay cash or will you use credit. What is
the product worth to you?  Do your research.  Ask yourself which
Products fit your needs? Which  is the best value?  There are
some "essential goals" that we should  ALL share because they're
critical to safeguarding our financial futures! We’ve already talked
about savings for retirement and emergencies.  Remember an
emergency fund covers the unexpected such as  job loss,
catastrophic car or home repairs, medical bills and any other
unexpected expenses or loss of income.  At least one of these
things will hit each and every one of us at some time.  Think about
it: this way, nothing is an emergency if you're  prepared for it!
Keep in mind a 401k or pension is NOT the same as an emergency
fund. That's because you can't get to that money easily. If you had
a real emergency, you'd have to go through some red tape and
face some early withdrawal and tax penalties!  Also keep in mind
that loans and credit are not equal to an emergency fund.  When
you take out a loan or put money on a credit card you will have a
new monthly payment.  That payment includes interest and may
put you into the red at the end of the month.   A tip that helped
me start to save is "Automate to Accumulate!"   Some people call
this "paying yourself first." You can set up an automatic draft from
your checking account to a savings  account.  You can use the
same bank or set up an account at another institution.  This is
what I do, I set it up an automatic transfer  to correspond with my 
pay days,  so every other week I am adding to my emergency fund
and IRA.  I use another institution and make it a bit more difficult
to get my hands on that money.  It’s the deterrent I need to leave
that money alone and let it grow.  You can also have a payroll
deduction go straight to savings or another account.  Any method
of going "automatic" will help you build more savings. If the
money is not in your checking account or in your hands you can’t
spend it as easily and chances are you won’t.  Forget about the
money in that account and let it grow.  Now let’s discuss another
essential goal, insurance. Insurance is basic to financial security
and is more a need than a want. It's one of the foundations upon
which we built financial victory. Of course, nothing is foolproof. 
Insurance for something truly catastrophic often isn't affordable.
But having no insurance can be a catastrophe in itself! Before we
get into the specifics of insurance, let's review the basic terms.
Insurance costs money. The payments for insurance policies are
called "premiums." lf you don't pay your premium, the policy will
lapse, and you won't be covered. Most insurance policies have 
deductibles.  For example, if you have a  $200 deductible on your
health insurance, your insurance company won't pay  anything 
until you've paid at least $200 in medical bills. Exclusions are
conditions or services that aren't covered under a  particular
policy. An example,  a homeowner's insurance policy that
excludes flood damage. There are many types of insurance, but
the most important are: health, disability, life, vehicle and
homeowner's or renter's insurance. Let's start with health
insurance.  Medical care is a "need." Because today's medical care
is so expensive, everyone needs medical insurance. Many people
have group health insurance through their employer. A group
policy is based upon a pool of people so the costs for healthy
employees is averaged with the cost for those with health
problems. This keeps prices down for the whole group. lf you
don't have access to group  insurance, and you aren't eligible for 
Medicaid or other free insurance, first take a  look at the health
Insurance marketplace  www.healthcare.gov to compare plans
and  prices for based on your income.  You may also want to
consider getting less coverage for less money.  This way you will
have insurance if something really bad happens. For example, if
you have a $1,500 deductible, the insurance company won't pay
for anything until you've spent  $1,500 in a calendar year. But if
you have to  stay in the hospital, you'll be very glad that you only
have to pay the first $1,500. In other words, some medical
insurance is better than none at all. Also, most high deductible
health insurance plans make you eligible  for the tremendous
benefits of an HSA, or Health Savings Account. If you  can't afford
even basic health insurance, consider making changes to your
budget even drastic ones so you can afford it. You can't afford
NOT to have health insurance,  it's a need, and we must adjust our
wants to  provide for this need!  Under the Patient Protection and
the Affordable  Care Act of 2010, nicknamed Obama Care, all 
citizens are required to purchase healthcare.   There are a few
exceptions, but if you do not  have an acceptable exception, a fee
or penalty  will be charged. Many people have strong  feelings,
positive and negative regarding this law.   You can shop for
coverage and compare rates and  Plans by going to
www.healthcare.gov.  For  Americans making less than 400% of
the Federal  Poverty level there are discounts in the form of 
subsidies to reduce premiums and lower out of  pocket costs.  If
you have lost your healthcare do to a change of circumstances, 
such as losing a job,  go to the Health Insurance Marketplace; you
could be eligible for coverage and  discounts and may be able to
get a less expensive  plan if losing your job has left you with the 
option of an expensive COBRA plan. Now let’s look at vehicle
Insurance. If you have  a car or a truck, you need vehicle
insurance. Many  states won 't let you register a vehicle without
it.  Without insurance, if you cause an accident and  someone is
injured, you could be sued for hundreds of thousands of dollars in
medical costs and  damages.  If you have a loan on your car, or
you lease, the company that finances or leases your  vehicle
requires that you have insurance listing  the company, along with
you, as the "loss payee."  The lender or leasing company will
consider any  lapse in your insurance a breach of contract. Then
the lender can then force you to pay them for  more expensive
insurance or even take your  vehicle by repossession. As with
anything, learning  more can help you save money. And there's no 
substitute for sitting down with an expert. Many  insurance
brokers have little training, so look for  someone with credentials. 
And that brings us to the next type of insurance we  need, life
insurance.  Laws differ by state, and while  there are some
exceptions, your heirs or family are  usually NOT personally
responsible for debts that  are solely in your name. Talk to a
lawyer licensed in  your state to find out for sure, but the point is
that  generally, your life insurance should not focus on  your
debts. Rather, it should provide for the people  who depend on
you for financial support.   Life  insurance should match your
financial responsibilities.  If you're single and don't provide for
anyone else  financially, you may only need enough insurance to 
cover your funeral. But if you have a family that  depends on your
income, you'll need enough  insurance to replace your income
should you die.  There are Internet tools, that let you estimate
how  much life insurance you will need.  Before choosing  a policy,
learn more, comparison shop, and talk to  an accredited insurance
professional about how much  coverage you need.  Consider term
life insurance if the  purpose of the insurance is to protect your
family’s  income for a specific time period, for example,  while
your children are still at home and dependent  on you. Whole life
insurance will also protect your  family’s income and protect
against estate taxes  (if you face that issue), but will be much
more  expensive. I'd like to caution you about two mistakes
People  make when it comes to life insurance. First, there  is such
a thing as too much life insurance. The first  one is when people
pay several hundred dollars a  month for life insurance, leaving
them unable to cover their living expenses.  This  usually happens
when parents insure not just  themselves but their children.
Remember, life  insurance should replace the income of the 
person  who dies. Since most people don't depend on income
from their kids, this is a bad choice if it leaves you unable to
balance your budget. The second mistake is when you purchase
insurance that you probably do NOT need. One example of this is
mortgage insurance or credit life insurance. Mortgage insurance
pays off your mortgage lender if you die during your loan. So
Mortgage insurance protects the lender more than it  protects
your family! Do you really want the money to go  to your lender
instead of your family? If you have  enough life insurance, your
family can use it to pay  off the mortgage and keep the house, OR
they can  sell the house and buy another one. With mortgage 
insurance, they won't have that choice. And it's usually more
expensive than life insurance.   There is one possible exception I
can think of, mortgage insurance may be beneficial for a person
who is in poor health and life insurance is unattainable or too
expensive. If you are  considering mortgage insurance in this
situation  check the small print for restrictions and make sure it
would cover your pre-existing condition. Can you  tell us more
about Credit Life? Credit life is similar but it’s for non-mortgage
loans. Credit life pays off the car lender or  other creditor if you
die during your loan. But  remember, your family is usually not
responsible  for these loans! Credit life is expensive, and lenders 
often push it and act as if it's because they care about your
protection. But remember it's profitable to them AND the loan is
paid upon your death even if your family is not responsible for it.
Credit life protects the lender much more than you! Again here,
you are much better served with life insurance.  One final tip: Try
to buy enough insurance in a single policy. lf you buy multiple
policies, you'll duplicate some costs. The next type of insurance
that most of us need is disability insurance. Did you know that you
have a MUCH greater chance of being disabled than dying during
your working years? It's true. That's why disability insurance may
be even MORE important than life insurance! Try to have
disability insurance that pays at least 60% of your salary and starts
3-6 months after you become disabled. Make sure it continues
until retirement age, and look for a policy that has a broader
definition of disability than the Social  Security Administration's.
Let's finish our look at essential insurance with homeowner's and
renter's insurance. If you own a home, you need homeowner's
insurance.  If you rent, renter's insurance is very affordable and
will protect your belongings.  Think of it this way: Insure to Be
Sure! You can avoid many pitfalls by insuring the important
financial elements of your life.  In summary, to reach our goals,
we must have a plan. Our goals will differ based on what's most
important to each of us. Proper insurance and an Emergency Fund
are "essential goals" because without them, we could lose
everything else. We all start at different places, but with patience,
persistence, and desire, we can all reach our realistic goals. Decide
what's most important to you, follow the steps in this unit and
you will be more successful in reaching your goals! Use effective
financial goal setting to create Your own goal map and make sure
to write  it all down. Insurance is an essential goal.  So be sure  to
have enough of the right types of insurance  for your situation. 
Insurance is what protects you  as you work towards your other
goals. You need to have BOTH an emergency fund and  retirement
savings. The emergency fund is money  you can get to quickly
without penalties. Your  retirement savings should be invested for
long-term  growth.