Luckily, I was able to attend a financial planning seminar today and would like to dispense some financial habits I've picked up. You had to attend to really have these notes meaningful to you, but here are the top things that I've learned with my personal anecdotes added in. :)
1. First you have to determine total your net worth. Sit down one night after work and crank up "Under Pressure" by Queen & David Bowie. Next, calculate what your total net worth is. Your Total Net Worth = Assets - Liabilities. Through this work, you should realize what position you're in. Now, it's your J-O-B to increase your assets and decrease your liabilities. 2. Determine and realize what your goals are. Depending on your life stage, realize what your goals are. Are you trying to pay down your student debt? Sick of living on food stamps to get your three daily meals? Saving to buy a car so that you can get to work? Paying for your child's college tuition? Ready to retire in Hawaii? Having these goals and planning on what you want definitely helps you with goals. 3. Make sure that you create a savings plan that contains: A. An Emergency fund (should be at least 6 months of living expenses) B. Savings for Short Term Goals C. Retirement Savings 4. Think about retirement. What are your goals for Retirement? What percent of your average annual gross salary do you need to retire on? What do you want your retirement to look like? What lifestyle compromises are you willing to make? Realize that heath care costs will likely increase in the future! Tips and Tricks 1. You're eligible for one free credit report per company every year. That means you can get multiple credit reports a year, cause there are multiple companies out there. For example, you can draw a credit report from TransUnion in 1 quarter and Experian in another quarter, etc. 2. If you're in a precarious situation, you MUST change your behavior. Don't run away from your problems. Time to face reality. You MUST reduce your debt. It's much better to cut down your costs and pay down your debt asap. Pay off your credit card debt that has the highest interest rate ASAP. 3. You really need to invest in your 401k or 403b if your company has one available. 4. You should really save 15% of your salary for retirement. Life is hard. It's going to get harder in the future. What ended the good ole times in America? Globalization. What's next? Artificial Intelligence taking over your JOB. Be afraid, but be prepared my friends. 5. Pay off your credit cards to zero, but don't cancel them. Don't close the card. Put it somewhere secure so your borrowing limit is still high. Tips for Saving Money 1. Turning lights off 2. Wear multiple layers instead of using the heater/Wear easy breathing clothes instead of using the A/C 3. Eating in/Cooking at home 4. Shopping at various grocery stores using coupons/sales 5. Buying easy to care for clothes 6. Giving gifts of trade/service 7. Taking advantage of library, free movies, discounts, community events, free concerts 8. Pay with cash as opposed to credit 9. Check out your local goodwill store for goods/shop at discount clothing stores for high quality goods at low prices (TJ Maxx, Nordstrom Rack, etc.) And most importantly... Spend less than you make
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