You should treat your savings as the most important bill/obligation that you have.  Always pay yourself first. Retirement Savings:  10% of your net income Your personal retirement savings is necessary even if you have a retirement plan with your job and plan on receiving social security when you retire.  If you work for yourself a personal savings is definitely necessary because social security will not be enough to sustain the lifestyle you have adapted to throughout your years of working. Essentials Savings for a year: 5% of your net income until amount is met. This includes things such as … Read More

4 things to teach kids

Parents reveal the 4 most important money lessons for children How do you teach your children to make smarter financial decisions? For most parents, educating their children about finance is a lifelong process that starts when they are young and continues long after the children become adults. To better understand how parents can prepare the next generation to be financially savvy, Capital Group, home of American Funds and one of the world’s leading investment management firms, conducted a survey of 1,202 adult U.S. investors. Overall, 30% of parents wish they had started teaching their children financial matters earlier in … Read More

What is Credit?

There are three little words you’ll probably hear time and time again as you approach major financial milestones in life: “You need credit.”  Interested in a credit card so you don’t have to carry around a lot of cash?  “You need credit.”  Looking to buy a car?  “You need credit.”  Want to own a house?  “You need credit.”  And while most people probably have a base understanding of what that means – you’ll need to borrow money, of course – they may not understand the ins and outs of credit and why their credit reports and credit scores are … Read More

Want to become wealthy?  Do this one thing

Most of us would love to be rich, but achieving meaningful wealth generally takes significant effort. Yes, you might get there with a very lucky lottery ticket, but don’t count on that. The odds of winning the Powerball jackpot are about 1 in 292 million. (The odds of winning just $100 are worse than 1 in 1,400) So, chase that dream in a more realistic manner, using a tried-and-true route: living below your means. Those four words are a critical key to achieving all kinds of financial goals, such as saving a down payment for a home, sending a … Read More

Good Credit versus Bad Credit

Good Credit versus Bad Credit Good credit and bad credit are the talk of the financial world. If you hold the key to good credit you will have the chance to take advantages of good credit loans. If you don’t possess this key, then you have bad credit. Good credit and bad credit can determine many financial issues that come up during your lifetime. Good Credit Good credit vs. bad credit is also a topic of interest for many individuals and determines the option to obtain a good loan. If you have a good credit standing, meaning your credit … Read More

The Cost of Bad Credit

Bad credit – two of the most dreaded words in the English language. Bad credit can really take a toll on a person’s life – and not in a good way. In fact, the effects can be worse that one might think. Having bad credit can make it next to impossible to attain a new car, an apartment, a personal loan or even a home. Even something as simple as getting a new credit card will be out of the question for a consumer with negative credit history. The most widely used credit scores are FICO scores, the credit … Read More

How to Become a Millionaire in 5 Easy Steps

So, you want to live like a millionaire? The common narrative in all rags-to-riches stories is that becoming wealthy hinges on the little decisions you make each day to put money in your own pocket instead of someone else’s. Smart spending is about picking and choosing which nice things to have, and when. It’s your decisions that take you either in a direction where you’re poor and in debt, or wealthy and comfortable. Ready to get started? Here’s a list of five things you can start doing today to take control of your money and set yourself on the … Read More

Credit Building

It is very easy to start building your personal credit.  One of the easiest ways to start your credit file is to be added as an authorized user on someone else’s credit card account.  This is not an option for everyone.  If this is an option for you, make sure the credit card account is in great standing; no late payments and utilization is less than 30%.  Authorized user accounts are great, but lenders understand that you are piggy backing off of someone else’s credit account. You need to start your own credit accounts. … Read More