There are lots of reasons that being frugal is awesome. We’ve talked about six of them in this blog post. Among those six reasons is the ability to (hopefully someday) retire. It’s easy, though, to get caught up in the “no spending on anything I don’t need for my literal survival” and forget that there are some things that are important, though maybe not literally necessary for your survival.  Still, sometimes you’ve got to spend now in order to (hopefully) save tomorrow.  Here are a few:

Life Insurance

Life insurance feels like a frivolous purchase. You’re healthy, you’re invincible, you’ve saved up a significant nest egg for emergencies. You don’t need life insurance because nothing bad is going to happen, right? Wrong!

According to SILI’s guide to life insurance, there are only a few people who truly don’t need life insurance: single people with no dependents or family, and those  with grown children who are 100% financially independent. For everybody else, life insurance is really important. Life insurance is what protects your family if something happens to you and it’s especially important if you are your family’s only source of income.

You can also set up your life insurance policy to cover a business you’ve started and any partners who have become dependent upon your input and income to keep the company solvent. This is especially interesting to us, because we’re committed to freelance enterprise full-time.

Home Insurance

Unlike car (and now health) insurance, it is not against the law to decide against having homeowner’s insurance. It’s true that many lenders will require you to have a homeowner’s insurance policy in place before they’ll allow you to take out a mortgage, but once you’ve got your new house and are moved in, there isn’t a law that keeps you from canceling your policy.

But you shouldn’t, because here’s the thing: homeowner’s insurance doesn’t just protect you if something goes wrong with the structural integrity of your house. It protects you against theft and any litigation-happy person who might trip while walking down your front steps or on the sidewalk in front of your house. That doesn’t mean you have to pay through the nose for it. The Wall Street Journal put together a quick guide to making sure you’re covered without having to take on third or fourth jobs to afford it.

Insurance is, on its face, baffling. You’re literally throwing money at a company and hoping like heck that they’ll never have to use it to take care of you. Still, it is better to pay money now than to put your family into serious financial strain later if there is an emergency. Work with a broker to help reduce the costs you pay out of pocket for your premiums every month and make sure you shop around. There are lots of ways to save money on your insurance policies. You just have to look for them!

How much do you pay for life insurance and homeowner’s?  What are your favorite ways to save?