Everyone wants to be rich, and obviously very few people accomplish this goal. With around 70% of people in the United States living paycheck to paycheck, this goal seems unreachable for most. But sometimes a combination of slight luck and smart decisions can take you a long way. One thing that everyone usually ignores is getting insurance to protect their assets. Whether it be life, home, auto, health, or even phone insurance, it's still essential to growing your wealth.
Not getting insurance on your money, your possessions, and your home is one of the dumbest mistakes people make. Becoming wealthy is only half of the work. The other half is all about how you protect, invest, and increase your assets. Protecting your assets is one of the most important things. Especially if you are an average middle class citizen.
Purchasing insurance prepares you for emergencies that could happen. Murphy's law states that "Anything that can go wrong will go wrong" so why not be prepared?
Let me give a quick example. Lets suppose you buy a new phone, and you have a choice of paying 100 dollars extra to buy insurance that offers a low 50 dollar deductible to get a new device incase yours breaks. Or you can save the 100 dollars and take the risk and pay the full 850 dollars in the event of your phone breaking. Now the smart thing to do is go with the insurance and pay the 100 dollars now and save the other 750 dollars. Even if you think it won't happen to you, it might. And that is just an unacceptable risk to take because of how easily preventable it is.
The most important insurance to have though would be life insurance. In the event of a death of a family member, they become a burden to the family. With funeral costs reaching close to 10,000 dollars it's important to give your family that and much more depending on the policy in the unfortunate event of a death.
If you do your research all rich people have almost every kind of insurance for almost any kind of tragedy. The World Trade Center had plane crash insurance before it went down. Even though an event like 9/11 never happened before they still got it just to be safe and for them it was a good investment because the destruction of the buildings was covered. So make sure you protect whatever you have, it will pay off one day.