It may seem like there is a lot to personal finance. And in one sense there is. There are thousands of different approaches to personal finance. And this can get overwhelming. It may seem so overwhelming that you feel paralyzed at square one. But it doesn't have to be. There are a handful of things that are critical in personal finance. All the rest is splitting hairs. So go through each of these items one at a time and make an improvement in each area. . . .
I hope the title of this post didn't resurrect nightmares from accounting classes. And I'll try to keep this post from being as boring as said classes. However, understanding your assets and liabilities is critical to your overall financial plan. Reframing how you view Assets and Liabilities If most people were to tally up their assets and liabilities, they would include all . . .
401k, IRA, Roth IRA. Sounds Greek, but we can keep track of three right? Oh, but there's also the Roth 401k. And 401a, 403b and 457s. If you've heard some of these plans mentioned, you might be scratching your head. In its infinite wisdom, our government has created all these plans for different kinds of situations. The biggest difference between all these plans is who they are . . .
Some people like to know all their choices. Most of us, whether we admit it or not, are overwhelmed by too many choices. I'm going to guide you through one good option to save for retirement. Might there be better options for your particular situation? Possibly. However, not saving for retirement at all is a much worse option. Start with this, and you can always tweak your plan . . .
In The One Page Financial Plan, Carl Richards approaches personal finance from the 'why', instead of the 'how'. He stresses the importance of figuring out why money is important to you, and what you want to accomplish from this. This lays out the foundation for setting goals that are appropriate for you, rather than cookie cutter goals that the financial industry thrusts on you. Examining the . . .
In a previous post, I mentioned that a good credit card will earn you cash back. The two most important things to me in a cash back card are a simple and flexible rewards and no annual fee. If a credit card adds hassle to your life, it's not worth it. And although cards with fees sometimes have better perks, very rarely are those perks worth the fee. Only after these conditions are met do I . . .
In one of my previous posts on budgeting, I recommended ranking your expenses in order of priority. This way, if you find that you need to make cuts to your budget, you can simply start with the least important and work your way up. Hopefully, cable and internet bills were near the bottom. I know in the 21st century it is hard for some people to imagine life without cable and internet, but it . . .
When you have all your current expenses, needs and wants comfortably in your budget, you may be tempted to stop there. You may even have an emergency fund in place. And that's all great! But don't stop there. When you have your needs covered and your emergency funds (both your $1000 in cash and your 3-12 months income backup) in place, its time to really start saving for future needs. Your . . .
Almost half of Americans can't cover a $400 dollar emergency. That could be a broken house window, broken leg, car repair or a number of other things that can pop up instantaneously and can't really be put off for very long. It would be nice if you could anticipate every event in life, but you can't. Which is where an emergency fund comes in to play. Building an emergency fund should be one . . .
While I hope I have good insights and advice to share with the world, I by no means think that I am the only or greatest source of financial wisdom. There are many other authors, bloggers, and financial advisors who are way smarter than I am. Everyone dishing out financial advice will have different opinions on personal finance, some differing way more than others. With that in mind, I will . . .
You might be wondering why the internet needs yet another personal finance blog. That's a good question. Personal finance, however is a huge and complicated topic, with lots of opposing opinions. By no means do I claim to be the only personal finance guru out there. I don't even know if I'd call myself a guru. I realize that there are lots of established and famous already out there, giving . . .