The Rachel Cruze Show - How to Know if You Won Financially in 2022 and Start the New Year Strong

Episode Date: December 26, 2022

Can you believe 2022 is almost over? Let’s check in to see how we did on our financial goals over the past year and set ourselves up for success in the new year. We’ll go over how to know if you won with money in 2022, how to organize your home and your finances, and how to know when (or if) you need to change your homeowners insurance. Can’t wait to ring in 2023 with you guys!   In this episode: ·      How to Know if You Won Financially in 2022 ·      How to Declutter Your Home and Budget After the Holidays with Minimal Mom ·      The Major Financial Risk You May Be Living in Right Now   Helpful Resources: Christian Healthcare Ministries Financial Peace University EveryDollar                                                 Sponsors pay the producer of this show, The Lampo Group, LLC, advertising fees for mentioning their services or products during programming. Advertising fees are not based upon or otherwise tied to any product sale or business transacted between any consumer or sponsor. The following sponsors have paid for the programming you are viewing: Christian Healthcare Ministries.   Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

So decluttering goes hand in hand with getting your budget on track and getting out of debt as well. So if that's where you need to start right now, you're like, I can do that, do that. And then I trust that in a few weeks, then you're going to feel really capable of getting your budget under control to you. Hey, guys, welcome to this episode of the Rachel Cruise Show podcast. I'm so glad that you're here. So in this episode, we're going to talk about when changing home insurance is important. Then you'll hear a fun conversation I had with Dawn, aka. the minimal mom about how to organize your home and finances after the holidays.

But first, let's talk about how to start off 2023 strong. I'll go over how to know if you won financially this past year, and we'll walk through things to do to close the books for 2022. Take a listen. So today, we're going to take a look at how we did financially in 2022. So we're going to look back over the year. And again, it can be kind of tough because this was a tough year. I mean, think about inflation.

The market was just a roller coaster. There were some massive layoffs. It was a lot. So it would be tempting to be like, oh, don't worry. That's in the past. We're going to focus on the future. And while that's a good attitude, looking back and reflecting, it's really important.

And you want to reflect on what went right, what went wrong. And really, that's going to help you make a huge impact on how you handle money next year. And the great thing is it doesn't have to be really hard. So we're going to just talk through a couple of things. I'm going to ask you some questions, and then you can kind of gauge how you feel like your year went financially. Okay? I love this. This is kind of like the nerdy stuff, y'all, but this is good. This is good for us to look back. Okay, we're going to start off with budgeting. I know you're shocked, but for real. Here's some questions. So answer them to yourself, okay? How regularly did you budget? Did you keep track of your monthly

budgets. So did you like, again, say, okay, this was last month's budget and the month before and before and before. Did you kind of, do you have a record of what each budget was each month? Did you make a budget each month? Did you track your expenses in your budgets? Mm-hmm. So how did you do overall? Because I would really suggest going back to your budgets if you still have them and look for areas that you consistently overspent. So you can think through next year. Okay, do we need to cut back? Do we need to up that category and lower it again to make your budget a little bit easier? If you're married, did you and your spouse have a budget meeting every month? Did you guys talk about it? How did those meetings go? Maybe a little rough for the first few,

but did it get better? Do you feel like your communication got better? Okay, so once you've answered those questions, then you can really look ahead and say, okay, what needs to change in my budget next year? maybe you feel like you're in a good spot. And you're like, nope, I'm doing it and it's working and it's great. And some of you're like, nope, that keeps popping up. I got to change that, which is good. So again, going back and looking. All right, the next area I want you to look at is your insurance.

Do you have the right insurance? Did you get the right amount of insurance, especially in 2022, that's going to take you into next year? So this might be kind of simple. It might sound simple. But again, any kind of accident or emergency can totally throw off your financial goals. if you're not insured enough or have the right type of insurance. So the insurance that I recommend that everyone needs is homeowners insurance.

If you're renting, renter's insurance, auto term life insurance, especially if you're married or you have dependents, health insurance, identity theft protection, long-term disability, and if you're 60 or older, long-term care insurance. Also, I recommend getting an umbrella policy if your net worth is higher than half a million dollars. So again, look back at the year, say, okay, how did those do? And again, do you need to make some changes? Is everything up to date?

And how did your life change? You know, like if your home's value, you know, like quadruples, like some people's, if you added another kid, if you got married, all those things, those life changes could show you, okay, I need to make changes for 2023 in the realm of insurance. All right. Another thing to look back on 2022 to see if you were winning with money is, did you give it regularly. Yes, were you a giver? Now, for some people, this sounds counterintuitive because you're like, I have financial goals. I need to put my money towards these things. But listen, a big part of your financial plan has to be giving. Regardless of what baby step you're on, I want you to give a little so that you can give a lot. Because it's all about creating habits,

no matter where you are. And also, it's just about your life. And if you didn't give a lot last year, if you look back, you're like, yeah, I didn't really give a lot. That's okay. You're not like a bad I'm not going to shame you. But I would say you don't experience a kind of life change that occurs only when you give. I mean, honestly, when you live your life with an open hand, things start to move. And we just want to have a tight grip and control everything we can control with our money. And sometimes that creates a heart that is closed. But when you open your hands, it's amazing.

It can be an extension of your heart. You just learn to give more and serve more. And it's a beautiful thing. So if you didn't put that into practice in 2022, I high, suggest you do that for 20, 23. All right, up next, do you have a will? Mm-hmm. If you do, great job.

And if you don't, you're a little behind. And that's okay. But the good news is it's really easy. It's actually one of the easiest things that you can take care of when it comes to your finances that your loved ones will feel very taken care of by you. It's one of the easiest things to do. So make sure to check out Mama Bear Wills. You can create an online will that's legally binding.

without an attorney. They make it very easy. So make sure to do that. Next, taxes. Yeah, I know we don't want to start thinking about tax day, but it's coming, y'all. It is right around the corner. So if you have done some side hustle work in 2022, you got to prepare some of that for paying taxes in 2023 if you're behind. If you have taxes withheld from your paycheck or if not, did you make sure that you save for taxes on your own along the way? again, if you are going to owe some money, I want you to make sure that you have that money saved as you're looking ahead to tax day.

And I just want you feel confident. I don't want any surprises to pop up. And so, you know, for me, that's just a huge deal. Now, if your taxes are really simple, you can check out Ramsey's smart tax. It can help you, but if you have a little bit more of a complicated, you know, tax situation,

you can definitely check out a tax advisor like a Ramsey trusted ELP to help you kind of sift through and get what you need. Again, it's amazing to have people by your side, especially in something complicated, like taxes. All right. Next, I want you to look at your net worth and your money goals. So your net worth is what you own minus what you owe, and that is your net worth. So again, I think it's really fascinating to do some math and to kind of figure out heading into

2023, where do you stand? And if you're in the negative, if you owe more than what you have, then what you own, then maybe your goal for next year is to get a positive net worth. Maybe it's like, okay, you know, we're going to get out of debt. We're going to work to save some money and get into Babyset 3 and save up an emergency fund, all of that. So your net worth, getting a positive net worth, if you didn't have that in 2022, maybe work on it for 20, 23. Okay, money goals, last but not least, yes, did you have any money goals?

think about, it just feels so far away. 2021, New Year's Eve of 2021 going into 2022, and you're like, my New Year's resolution is, boo, or my money goals, boo, right there. Okay, did you have those? If so, how'd you do? What's your progress? Did you get off track?

Did you have to pivot? Were they the right money goals for your life? Look back and say, okay, that goal setting, how did that go? Because I do want you to set some money goals for 2023. And again, the best goals are specific, measurable. They're your goals and they're on paper or typed out. Like you want them in front of you visually. And that helps.

So having goals, it is. It's so, so key. Again, financial goals, money goals I love because I think there's so many great ones to have, whether it's to get out of debt or to build up an emergency fund or maybe start giving more, but have a money goal for 2023. And if you want some help with goals in general, you can check out our 2023 Ramsie Goal Planner. And it's great.

it's laid out, really helps you with your financial, the financial part of your life, the relational and spiritual. And there is still some left. So click the link in the show notes to check that out. All right. So as you go back and kind of audit 2022, how'd you do? Some of you might be like, I killed it. I killed that year. Inflation didn't get me. I'm ahead of the game. Some of you're like, oh, I did terrible. But listen, either way, it's okay. That's a good place to be. celebrate the wins, acknowledge the hard, and maybe some failures. But it's all to look ahead. But the important thing is to have visibility. Some people just want to, you know, put their head in the sand and be like, I don't want to look, I don't want to look. But going back and reflecting is really important to start out a new year.

The new year of 2023. Can you believe that? Can you believe it's coming up? It's just crazy. All right, make sure to share this with a friend who loves talking about the year. I'm that person. I'm always like, let's look back. and are here. Let's look ahead. I got stuff is so fun. So you guys, thanks so much. I hope you had a great Christmas, a very Merry Christmas, and I hope you have a happy new year. I'm so excited about this episode because Dawn,

aka the Minimal Mom, is back on with us. And if you know anything about her or follow her channel, she's an expert when it comes to minimal living, but yet her stuff is realistic. And that's what I love about Don. So, Dawn, thank you so much for coming back on. Thanks, Rachel. It's so fun to be here.

I know, it's so great. Okay, so we survived Christmas, you know, we made it through. And so now it's like, okay, we have Christmas gifts. And if you have little kids, they've gotten Christmas gifts, maybe from friends and family and Santa and like all that's there. Your Christmas decor is probably still up, which I'm not mad at. I'm an after-new year's kind of person anyways. But, man, it just feels like there's just stuff everywhere. So I want to know, when do you take down Christmas decorations? And, how do you organize them, Don? Because this is one thing. I'm like, you can just like stuff it in a box half open, half ripped in an attic, and you're like, I'll worry about it next year. Right. So we've already been taking it down.

I'm like a couple days after Christmas. I'm kind of ready to get the house back to normal. I think because of all of the other stuff that's come in, I'm kind of like, what can I control? I can control decorations and Christmas wrap and boxes, Amazon boxes everywhere. So I take control over that. And then I usually give the kids kind of a week of toys and stuff everywhere before we kind of

zero in on that too. Yes, that's so good. I know, well, I just probably like four weeks before Christmas, I went up to our playroom and I had a bag to give stuff away, a bag to throw stuff away, and even some stuff to put away because I know this sounds so cheesy and sentimental. But my mom and my husband's mom kept bins of our toys when we were kids. Yeah. So when my kids go play at my parents' house, my mom like, oh,

you know, she has a lot of our toys from childhood, which I think is sweet. So I am keeping one bin just to like pass on maybe one day. You know, so I'll end up with it. But even just clearing stuff out before the Christmas chaos helped me. But what would you say in people's playrooms, you know, specifically with kids? Yeah. Like, what are the best ways? What can we do now to like, like, I don't know, have a deep breath because I just feel like there can just be crap everywhere.

I know. I couldn't believe how many moms before Christmas were already working. worried about the aftermath of Christmas, right? And so I think the most important thing we can do right now is to take a step back and remember that for our children, it is very important that we create an environment where they can play and play successfully. And so if you look at their research, play is such a huge part of our children's childhood because that is when the prefrontal cortex of their brain is developing. And so through play, They are learning problem solving skills, social skills, all of these really important things.

And it's not developed in the same way if they're watching TV or if they're playing a game on a device. It actually is through play, physical play with toys and with other kids. And so I do think it's important to step back and say, you know, like it feels a little overwhelming. I probably have at least one child who's really attached to everything. but it is really important that we set up an atmosphere and an environment in our home where they can succeed at this. And so I feel like having that perspective going in can help us to make some of these tough decisions. So once we kind of set our mindset and we know what our goal is, we want to find toys that create this environment where kids can play. And what that means then is there's probably

toys that they've outgrown. There's probably toys that we thought they would really like, and it could have even been a Christmas gift this year, and they're just not interested. They thought it was cool when they opened it up, and they have not gone back to it. And so we really have to, like, kind of use our detective skills as moms to say, okay, what things engage them and what things don't. And it can be disheartening when it's the, like, expensive, like, Montessori toys or the educational toys that we thought was going to that's what's going to develop their brain, right? When it's actually usually the more open-ended stuff,

like blocks, duplos, magnetiles, a few, like, baby dolls and trucks and that kind of thing. Okay, that's so good, because I think that does, sometimes for me I can justify for whatever reason, like keeping, like this, well, maybe, eh, and just having some, like, lanes for my mind to go down when I am sorting or figuring out, it's so helpful. So those guidelines, it is.

It's so, that's so, so helpful. And chances are if they're not engaged with it now, nothing's going to change in the future. Sometimes we think, oh, maybe when they're a little older or maybe on a snowy day or something else, if they're not playing with it now, there's a pretty good chance they're not going to. But I also love what you said, Rachel, about having, like, one container of, like, maybe like, sentimental toys or the goal is to pass them on. I hear from so many moms that we're more attached to the toys than their kids are. And I've gone through that too.

There's my toys. I've got my kids. I'm like, I would have love to have this when I was, you know, a child and I've got it. And they couldn't care less. And so there are things that I might keep for myself, you know, in a memory bin or put in their memory bins because they really did love it when they were little, but now they've outgrown it. And so we can set a few things aside for that, but have a container, have a limit. That's the goal of that container.

And then the rest, let's pass on to other people that can make use of it. Yes. Oh, I love that. I know. And what's funny, but that kind of stuff, like toys just like fashion. I'm like, it cycles back every like 30 years. Because my mom has a whole thing of Polly Pockets. Like she has like this big, from when I was a kid and my girls were like,

these are the coolest Polly Pockets because they have some, yeah, all of it. So it makes me laugh. And I'm like, man, who knows? Who knows it will still come back. Well, we'll come back in style. I love it. Okay, so that's kind of with kids, you know, gifts, playrooms, all of that. So in just in general, people have kids or not,

what are things that you're looking around? Okay, for the new year. here's some areas of your life that you could organize and really help your life. Both of our friend, Dr. John Deloney, I know you know him as well. He had this whole thing about like the amount of anxiety can even equate to the amount of clutter that we have. Like get rid of stuff. If your house is a mess, it's going to cause you to feel messy. It was a post and it was like, it was so well said.

And I know we can all feel that. So heading into the new year, people have resolutions. They want to start new habits. So being the expert that you are. in this area. What are ways you're like, yes, 2023, think about this and this when it comes to organizing? So I actually hate the word organized because I failed at it for so many years. And like that's always our goal. I think as women in our house is we need to be organized, right? And I just sucked at it. Like I was not good at organization. I could put it in place, but it never

stayed that way, right? And so I was so hard on myself because I'm like, gone, get it together. You know, like, what is wrong with you? And so what I've realized over the years is that every item in our home is inventory that we have to manage. We have to take care of it. We have to keep it dry, keep it from pests, keep it organized, not forget about it, use it before it expires. And so if you're looking at different areas of your house that you just can't keep organized, that just aren't working, it could be your front hall closet, it could be your kid's toy room, it could be your own clothes closet. it usually if we just can't get the organization to work, we're frustrated with ourselves, it's just because there's too much inventory in there. And this is good news because there's

nothing wrong with you. You're not messy or unorganized or even lazy. I would tell myself that. I'm like, oh, Don, you're just so lazy. It's Saturday. You should be organizing, not avoiding it, right? But I realize that we can all manage different amounts of inventory, and it usually changes depending on the season that we're in. And so I thought when we had really little kids, I was like, oh, I can only manage a low amount of inventory because it just requires so much like hands-on-work raising kids, right? And now our kids are getting older and they're like eight through 13. And I'm like, oh my goodness, I can manage even less now than I did when they were younger because we are running and we're this and they want to talk about like really important things, you know?

And I'm having to like learn new parenting skills. And I'm like, I, the amount of inventory I can manage in my home and keep it organized and keep it picked up and just generally feel like a good mom is so low. So I want to encourage you, again, we're looking at mindset shifts that we're making this year. There's nothing wrong with you. If you're looking at these areas that consistently fail in your home, let's just look at how can we reduce the inventory in those areas. That is so smart. Because it just makes it easier then just to handle it and to give you that piece of mind and seeing space and on everything is just, yeah, because too much stuff, it does. I know you talk about this all the time, but I'm like, I feel it. I feel the stress come up when I'm like, I open something.

I'm like, oh my gosh, what is all this? So I love it. It just gives a level of peace, control what you can control. And there's things that we can control our closet and what's in it, right? That's the good news. That's awesome. So when it comes to your money specifically, I know you guys have a money story. And when we talk about organizing your money, you know, I always think about the budget. And I'm like, it's such a great way to get control of it and know what's going on. And for you, you've experienced this when it comes to controlling your money and organizing it or just managing it really well. And the budget has helped you too, right? Absolutely. And so I would say this time a year, especially what I need to do to stay in budget and to stay on top of our money, is I have to put

the blinders on to all of the sales and the influencers. Just like the other day, I was on Instagram, right? And I love, there's this gal I follow because she does all these like DIY. home projects and I love that. But she also sells a lot of stuff because that's how she makes money, right? And so she was holding up these like pillow slides, like those sandals, you know, that are supposed to be so comfortable. And she's like, oh my goodness, they're 50% off. They're the most comfortable thing ever. Everyone in my house has them. Like, you have to have them. And I'm like clicking through to buy them. And I'm like, what are you doing, Don? We're in Minnesota. There is snow on the ground for the next six months, like, when are you going to wear these? And you actually have a very similar pair

in the closet once it actually does get warm enough. But I couldn't believe how that sense of urgency and it's my favorite. And you'll never possibly get this good of a deal like ever again, how I bought into that. And I should know better. Yeah. Oh, it's amazing. You have to recognize where your weak spots are. And so I have had to unfollow people on Instagram, who I love to dearly, even though I don't know them, right? I do pickup orders. Like, I rarely go into a store anymore because you just always have to have your guard up. Like, if you're going to go into Target right now and you're going to walk by the dollar spot, like you better have good muscles right now to not impulse by, right? Or to really have a good grip on what your budget is. Otherwise, if you're like

me, it's like, I just have to stay away because do you know what? If I didn't see her story on Instagram that day, I would have never known that I could have got pillow slides for 50% off and that I was missing out if I didn't get them, right? I wouldn't have even had that temptation if I would have just read a book. And I love, Rachel, your book recommendations. I've read so many of them now. Oh, I'm so glad. But that's what I found. I'm like, I am weak. If I go on Instagram at 930 at night, I am going to make a poor buying decision. Like, it's just almost guaranteed. And so I'm like, don't read a fiction book. You're going to be better off. You're going to feel more relaxed afterwards. And like put the blinders on right now. But most

if you are just feeling tired and just a little overwhelmed from everything we've just gone through and maybe even just setting a budget right now feels daunting. Maybe you made some decisions over Christmas that you're not proud of. I do think that if you will continue to work on decluttering your home and simplifying your space around you so that we have a peaceful place to be, right? So where we can come home and we can let our guard down and we can make level decisions, so many have said that that process of decluttering also helps us to detach from the consumerism and that need to buy because we realize that all these things we've bought in the past, they didn't really live up to what we thought they were going to. And that also helps us to make better buying decisions

or not fall victim to these marketing campaigns anymore. So again, control what you can control right now. And so decluttering is, it just goes hand in hand with getting your budget on track and getting out of debt as well. So if that's where you need to start right now, and you're like, I can do that. Do that. And then I trust that in a few weeks, then you're going to feel really capable of getting your budget under control to you. Yes, that's such a good point, though, because when you're decluttering, you're like, oh, wow, this and this and this and this and this and this and this and this and that I bought, you're like, but we all fall for it, right? I mean, I do it too. So it is. It's so common, but I think going back

to that truth. And what I do think is so great about your message and what's so encouraging is when you do have a place like your home or your apartment, your condo, wherever you are that feels peaceful, it has to give you more margin mentally to be like, all right, let me like actually dive in and think through topics like my money or my marriage or what, you know, my friendship, whatever it is. Like it gives you the capacity, even the emotional capacity. Yes. To tackle these subjects that may be really tough, just like money.

So almost, yeah, the clutter guys. And then you'll be a great budgeter. That's what Don and I are saying. They go hand in it. But it is. It's a huge process. And I think that decluttering it will. It does kind of help give a little bit of that margin in the mental space.

And follow anyone you can in the debt-free community. I love that hashtag. There's so many gals that I follow on Instagram. And they're posting their numbers and what they're doing to get out of debt. So I unfollow the people that are selling me pillow slides and other things, right? And I follow these women that are on this same journey. And it is so inspiring. Like the community around this is incredible and it's so encouraging.

And so we need this. that right. It's really hard to feel like you're doing something alone, but follow, check out the hashtags and like follow other people on the same journey. And what I love to think about, Rachel, is that by this time next year, your life could be completely different with your house and with your money. And there is so much peace and freedom that comes from both. And so do whatever it takes because it is the most worthwhile things that you will ever do. Yes, 100%. Oh, I totally agree. And that's the encouraging thing is I'm like, you have the ability to do this. You know, if you're watching or listening, you know, that's what Don's saying. And that's what I believe about you is that you have the ability.

You get to choose it. And so, yeah, you're not going to be perfect at it. We're still not perfect at our lanes of life, you know, whether it's money, you know, or decluttering or buying stuff that you may not need. Like, yeah, you're going to make mistakes. But, man, you still have that option to do something about it. And that's so empowering to me. And I don't know, you've seen people's stories just like me on the money side is, you know, people that go from a crazy cluttered house to actually making small steps a little bit at a time. And you look up and it's been two months and you think, oh, wow, I really did that. I really did get rid of all that stuff. Or I really am budgeting for the second month in a row. I can't believe it. So it's just a day at a time. But you guys,

you can do it. So Don, thank you so much for the encouragement and the tips. Where can everyone check out all your stuff? We spend most of our time on YouTube. So if you search the minimal mom, We have over 600 videos to help you de clutter, no matter what area of your house you need to declutter. So you can find us there or The MinimalMom.com. I love it so much. Don, thank you, thank you, thank you, thank you. And thank you guys.

Make sure to check out everything Dawn's doing to get that extra encouragement and inspiration because she is so fabulous at it. So today, you're going to want to pay attention because we're going to talk about something that you don't want to forget about. It's very exciting. Are you ready? Homeowners insurance. That's right.

This is like the best episode yet. Okay, listen, even if you have homeowners insurance, which if you're a homeowner, then you should, you can't have this like set it and forget it mindsets. You need to regularly make sure that it's up to date and that you're adequately protected. Otherwise, you could be at huge risk. Your home is your biggest investment. So you want to make sure that you do everything you can to protect that. So we're going to learn how and when to give your home.

homeowners insurance a checkup. So let's start. Let's still a recap of what home insurance is and how it works. So homeowners insurance is financial protection for your home and personal belongings in case of accidents, fire, other disasters. So it's a way to avoid financial ruin because it would ruin you if you don't have insurance by really transferring the risk from you to an insurance company. and homeowners insurance also protects you from lawsuits due to accidents on your property. Think about like if you're a dog bites someone or they fall off your front step and, you know, break their ankle and sue you, that kind of stuff, you know? It's really exciting stuff.

So here's how it works. By paying monthly premiums you enter into a contract with your insurance carrier. And your insurance company then agrees to cover you in case of an accident, assuming that it's covered by your policy. And like many other insurances, you pay a certain amount out of pocket, aka your deductible. And then you're going to file a claim in your insurance company then will pay any costs above that deductible up to the policy's limits. And even though it's not required by any state laws, you need homeowners insurance. And just FYI, if you're renting, you can have renters insurance too.

And you should get renter's insurance. It's really inexpensive. Okay. having homeowners insurance is really that first step, but then you want to routinely check up on it. And why would you want to do that? Because homeowners insurance amounts are based on your homes of value at the time the policy was written. So you see how I'm going with this? Yeah, I remember like the last like two years how home values were like, boop, boop, boop, boop.

That means your home's value probably went boop, boop, boop. In fact, on average, homes are up 6.6% over. last year. And sometimes in the world of life, you know, maybe, I don't know, it goes back down, it goes up. Regardless, you need to be on top of it. So call up your provider, find out if you need to make adjustments, and then follow these five simple steps to change your policy. You ready? Step one. Don't allow a gap in coverage. So this would come into play if you're out shopping for a better rate with a different vendor and you see one. You're like, I want that one. Don't cancel your current policy and allow some lapse in time until you've secured your new rate. Okay, that would be

terrible. That would literally probably be a nightmare. Like, I get a better rate over here. You're going to cancel mine and sign up for this one. And in the middle of you sign up for that when paperwork a tornado comes through and you're like, oh my gosh, I didn't have insurance because I was switching insurances. So again, do not allow a time lapse to occur. Step two. Ask how well your coverage reflects current prices. So homeowners' policies typically last a year and renew annually. So if you're coming up on a renewal, then it's a great time to ask your agent or the company that sold you the policy for an estimate, then you can find out if your coverage level matches your current value in the market

from your home and you need to adjust if necessary. And if it doesn't match, then you need to decide if you need less coverage because then you would save more on premiums, which is great. or more coverage if your policy doesn't provide enough. Step three, check your policy's terms and conditions. So if you end up needing to cancel your policy because, again, it doesn't meet your needs or you find a better rate over here, you might be charged a fee or a penalty.

So again, over time, it's probably worth canceling it if you find a better deal somewhere else that fits your needs. But again, if you have a fee coming up, then make sure it is in your budget and you know it's coming. Step four, be aware of coverage, limits, and deductibles. So all policies have defined coverage, limits, and deductibles. So you're going to need to keep your eye on all of those details as you research other companies for the best policy for your needs.

So finding an independent agent that does all the comparison for you, all the research is so helpful. Finding someone that you trust is really, really smart. And I recommend Ramsey trusted endorse local providers, so I will put a link in the show notes. All right, step five, let the lender know about any policy changes. If you're still paying on your mortgage, be sure to notify your lender of any changes that you need to make to your homeowner's coverage. It's probably one of the things that they pay for you out of an escrow account, so they'll need to be sure to know about the switch.

All right, you guys, that was a lot. I told you it was very exciting, very exciting. This is like grown-up stuff. Adulthood could be a tough hood to live in, but we are all in it together. important stuff. So again, making sure that you're covered with your homeowner's insurance, because it is, for most people, it is the largest financial purchase and investment that you have over your lifetime. So you just want to be smart about it. So again, check out a Ramsey trusted ELP if you need help in all the nitty, gritty details and be smart about it. You guys got

this. So hopefully I've inspired you to check up on your coverage. Now make sure to share this with a friend who you think may need it. So you're like, hmm, our home probably went up in value. you a lot. I'm going to pass this on to help them out. That would be great. All right, you guys, hope that little pep talk helped you prepare for 2023. Bring on the new year. I can't wait. All right, I want to thank Don so much for being on the show and thank you guys so much for listening. If you have not subscribed to the podcast, make sure to hit that follow button. And if the spirit leads, you can leave a review. And as always, make sure to take control of your money and create a life you love.