Continuing our series on finances, today we turn our attention to savings and insurance — ways to fund and protect your future.

There are many different types of savings that should be part of your portfolio. Now, of course, you won’t be able to reach all of your savings goals all at once, but growth over time is a winning strategy. Even a few dollars a month can make a difference over time. So don’t get overwhelmed by the length of this list:

• Retirement savings. This is the big one. You need to save now for a time in the future when you won’t be able to work. You may want to work with a fee-only financial planner to set savings goals and to choose investment options. If your company offers a retirement plan, you’ll want to take advantage of any matching funds offered. You may also want to supplement the company plan with other funds, such as a Roth IRA. If your company does not offer a plan, there are savings options for individuals.
• Emergency savings: Ideally, you want 6-12 months of living expenses (look at your budget) in an immediately accessible account. This is not money available for investing.  If 6-12 months seems like too much, start with three months. You don’t want to use those savings for anything else. This is a fund you tap into of something tragic happens — like you lose your job.
• Life happens fund: This is an idea from one of my favorite financial columnists, Michelle Singletary. This savings account should have $1-2,000. It’s what you use when the car breaks down or you need to replace the washer or you have to buy a plane ticket to go to a family funeral.
• College savings: If there is a young person in your life, you need to save for college. Student debt is outpacing credit card debt and it’s hanging around until old age. Saving now can ease the burden for your beloved students. Many states offer plans that come with tax advantages, so you’ll want to balance tax advantages, fees, and investment options. (You can create an account in any state, though that may affect your tax advantages.)
• Holidays: If you go big for Christmas, you need to save all year. Remember, no debt for Christmas gifts!

Depending on your needs and desires, you may want to save for other things as well. Perhaps you want to save for the trip of a lifetime or for a new car or for a new house or a major remodeling project. Whatever it is, a little bit at a time makes all the difference.

Turning to insurance, it’s important to start by considering the reason for insurance. Insurance protects against catastrophe. It protects assets and income sources. So, what sort of insurance should you consider:

• Health insurance: A single hospital stay can bankrupt you. Health insurance can mitigate that danger. If your employer does not offer a health plan, look to the state or national exchanges and double-check to see if you qualify for a subsidy.
• Auto insurance: Many states require that all drivers carry insurance in case they hit someone. You may also want to insure against damage to your own car. It’s a competitive industry. Get multiple bids at various deduction limits.
• Homeowner’s insurance: If you have a mortgage, you must have homeowner’s insurance. Once again, it’s worth getting multiple quotes. Even if you’ve been with the same company for a while, every few years, it’s worth getting some competing quotes to make sure you’re getting a good deal. If you need to lower your insurance cost, consider raising the deductible. You don’t need to file a claim for every small thing. If you have a life happens fund, you can cover a $1000 deductible if something bad happens and save money when it doesn’t. If you don’t own a house, you need renter’s insurance.
• Disability insurance: Your employer may offer this automatically or as an add-on. This insurance provides an income if you are disabled and unable to work.
• Long-term care insurance: This insurance provides for care in your home or in a skilled nursing facility if you become incapable of handling the activities of daily living. This insurance can be very expensive and complex, but it can provide great comfort in old age. It’s worth the time to research it carefully.
• Life insurance: Life insurance replaces income or its equivalent in the event of death.  If no one depends on your income, you may not need life insurance. The only reason to buy it is if you think your situation might change — through marriage, adoption, etc. If your situation is likely to change, you may want to buy it now in case your health situation changes. One thing to keep in mind, just because someone doesn’t earn a cash income doesn’t mean they don’t need life insurance. If a stay-at-home mom dies suddenly, her family will need to replace the child care and other skills she provided.

I know, it’s a lot. But take it a little bit at a time. Make it your goal to get this in order by the end of the year.