Preparing for the unexpected

• Take inventory. Figure out your net worth, which is the sum of your assets minus your liabilities, and where you stand financially. Assets are the items you call your own, such as the value of your home or your retirement and savings accounts. Liabilities are everything you owe, like credit card bills, home mortgages or equity loans and college loans.
• Encourage your family to talk openly. It's never easy to talk about "what ifs," especially illness or death. But it's much easier to do so before you're faced with it. Discuss with your spouse your plans and goals, and all the "what ifs" you fear most. Then decide as a family how to achieve the good and handle the bad.
• Manage your money. Have a clear picture of where your money is going (home mortgage, credit card bills, groceries, gifts, etc.). Keep a money journal and track all your spending, bills and other expenses for a month. Then develop a budget to help you stay on track.
• Eliminate debt. Look at your credit card debt and develop a plan to reduce your monthly payments. Pay off cards with the lowest balance and review the annual percentage rate for each card. Contact your credit card companies and ask for a lower percentage rate. Pay as much as you can against the balances. Also, consider consolidating your cards from high-interest cards to a lower interest rate card.
• Set goals. Work with a State Farm agent to develop both short- and long-term financial goals. Your agent will listen to your objectives and can provide a free Insurance and Finance Review to help you determine where you are, and help you reach your goals.
• Develop plans for the future. Take a financial inventory. You need: 1) money for monthly expenses, college and retirement; 2) legal documents, like wills, living wills and powers of attorney, to ensure your wishes are carried out; and 3) insurance for life, health and property. Fill in any gaps, take stock each year, and update your strategy as your needs change. It's never too late - or too early - to develop a retirement plan and start saving. If you invest $100 every month starting at age 50, you'll have up to around $24,000 by age 65.
• Protect your family. Most people don't have adequate life insurance. Obtain a sound life insurance policy that can help protect your family for the future should something tragic happen. A State Farm agent can help you decide the best policies for you and your family.
• Find a trusted financial source. It's understandable to be wary of financial professionals, since personal finance matters can be complicated. But that's why the help of trusted financial professionals is so valuable. State Farm can help you take a financial inventory and determine how to best protect your family, set goals for your future and prepare to meet life's challenges.

For more information and tips on financial preparedness for you and your family, visit www.statefarm.com.

To find a State Farm agent near you, visit www.statefarm.com.