State Farm® Embrace Life® Awards Tips for Life Insurance and Financial Preparedness

Many people put off financial planning for tomorrow. Too often “tomorrow” never comes and they find themselves unprepared. Don't let the daily routine of life get in the way of your future. No matter what your hopes and dreams – or where you are on your financial journey – State Farm has the resources to help you achieve them. Here are a few tips to get you started:

• Take Inventory: Figure out your net worth (the sum of your assets minus your liabilities) and where you stand financially. Assets are the items you call your own, e.g. the value of your home or all of your retirement and savings accounts. Liabilities are everything you owe such as credit card bills, home mortgages or equity loans and college loans. By taking inventory, you may be pleasantly surprised by how much you have. Or it may be a real eye opener to realize where you stand financially.

• 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 your spending, bills and other expenses for two weeks to a month. Small amounts add up, so be careful to capture everything. Then, develop a budget to help you stay on track. Review your expenditures and decide what can be eliminated like those extra coffee drinks. Remember, you have goals to reach!

• Eliminate Debt: Take a look at your credit card debt and develop a plan to reduce your monthly payments, i.e. paying off cards with the lowest balance, review the annual percentage rate for each card, etc. Contact your credit card companies and ask for a lower percentage rate. They are usually accommodating especially if you have paid your bills on time. Also, consider consolidating your cards where possible. For instance, move some of the debt from a high interest rate card to a lower interest rate card to reduce the amount you are paying each month. Pay as much as you can against the outstanding balances; don’t just pay the minimum or you’ll never eliminate the debt.

• Set Goals: Work with a State Farm agent to develop financial goals, both short- and long-term. Your agent will listen to your objectives and can provide a free Insurance and Financial Review to help you determine where you are and establish a plan to help reach your goals. Whether you are buying a new home, saving for your children’s education or planning a wedding, State Farm has the products and services you need to make your dreams come true.

• Plan for Retirement: Whether you're 10, 20 or even 30 years away from retirement, it is never too late – or too early – to develop a retirement plan and start saving. Did you know that if you invested $100 every month starting at age 50, you’d have $24,691* by age 65? If you invested that same amount starting just 10 years earlier at age 40, the total doubles to $51,584*. And, if you start at age 30, you would have $91,678*.

• Protect your family: Most people don’t have adequate life insurance. Obtain a 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.

For more information and tips on financial planning for you and your family, visit www.sfredportfolio.com. To find a State Farm agent near you, visit www.statefarm.com.

* Based on a 4% rate of return. (These figures do not take taxes into consideration.)