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
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
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
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