Published September 2, 2015|2 min read
Though Generation X has the coolest generational name in recent memory, there is one thing they're missing: a financial safety net. If you're part of Generation X and don't have an emergency fund or the proper insurance, you're in good company, but that doesn't make it any better! Here's our advice on how to get in better financial shape than your peers.
Homeownership is a pretty big deal for 35-year-olds, with the majority of you owning a home. With a home usually comes a mortgage, which is partly responsible for the $108,000 worth of debt that the average 35-year-old has. On top of that, there's student loans (potentially from both undergrad and graduate school) and credit card debt. Here's the deal: the only way to get rid of it is to pay it off, and the best way to pay it off is with unbridled aggression.
Just like 25-year-olds, most 35-year-olds don't have enough emergency savings. While it's understandable that kids in their twenties aren't thinking about emergency savings, it's really not acceptable by the time you're 35. Do us all a favor and read more about how to build up that emergency fund.
What happens if you get hit by a car today? No, seriously — think about it. Will your spouse be stuck with a mortgage or other debt? Will your kids be able to afford college without your income? Life insurance is your back-up plan: when life doesn't work out the way you expected (you know, by unexpectedly ending), life insurance will make sure that your family is protected and taken care of. Read more about life insurance.
Okay, so go back to that "getting hit by a car" scenario — except in this version of the story, you don't die. However, you are unable to go back to work for years. Suddenly, you have a ton of medical bills and you've lost your income. In this situation, long-term disability would help you and your family make ends meet. Long-term disability acts as income replacement in the event that you can no longer work due to a permanent or temporary disability. Long-term disability insurance only gets more expensive as you get older, so get a policy while you're still young. Read more about long-term disability insurance.Take a look at our infographics below. We sifted through the data to find the average 35-year-olds: Christopher and Jennifer. We also ran them through our personal insurance checkup and found that they need life insurance and long-term disability insurance. If you read any of the above information, you shouldn't be surprised!
Most popular baby names of 1980: Babycenter.com. Represents Americans born in 1980, separated by gender.
Employment: Bureau of Labor Statistics, 2014. Represents Americans ages 35 - 39, separated by gender.
Annual income: Department of Labor, 2014. Represents Americans ages 35 - 44, separated by gender.
Emergency savings: Federal Reserve Survey, 2013. Represents Americans ages 30 - 44, not separated by gender.
Marriage and divorce: United States Census Bureau, 2013. Represents Americans ages 35 - 39, separated by gender.
Health insurance: United States Census Bureau, 2014. Represents Americans ages 35 - 44, separated by gender.
Related children: United States Census Bureau, 2014. Represents Americans ages 35 - 44, separated by gender.
Life expectancy at birth: Center for Disease Control. Represents Americans born in 1980, separated by gender.
Home ownership: United States Census Bureau, 2014. Represents Americans ages 35 - 44, not separated by gender.
Debt: United States Census Bureau, 2013. Represents Americans ages 35 - 44, not separated by gender.
Political party: Pew Research Center, 2015. Represents Americans ages 34 - 49, not separated by gender.
Smartphones: Pew Research Center, 2015. Represents Americans ages 34 - 49, not separated by gender.
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