The Dave Ramsey 7 Baby Steps: Pros & Cons of His Method
.The Dave Ramsey 7 Baby Steps: Pros & Cons of His Method
If you have been looking for financial advice, then you’ve probably come across the name Dave Ramsey and his 7 Baby Steps in your research. Over the years, Dave has quickly become one of the most popular financial “gurus” in the space and has offered helpful advice to thousands of people. But there are plenty of people offering financial advice out there that it can be difficult to know who to trust and what methods are worth following. He can also be a fairly controversial figure, which has garnered him some flack about his workplace policies and methods. However, I’m not here to judge him on these aspects.
Instead, I’m exploring his 7 Baby Steps and if they are worth following to better your finances.
Who is Dave Ramsey? Financial freedom guru, radio presenter, and businessman with a cult following; Ramsey specializes in helping individuals complete their own total money makeover. He covers all aspects of personal finance; including credit cards, interest rates, student loans, Roth IRAs and daily budgeting. His unique emergency fund and “debt snowball” methods have garnered him a huge following around the globe.
The Dave Ramsey 7 Baby Steps: Pros & Cons of His Method
If you have been looking for financial advice, then you’ve probably come across the name Dave Ramsey and his 7 Baby Steps in your research. Over the years, Dave has quickly become one of the most popular financial “gurus” in the space and has offered helpful advice to thousands of people. But there are plenty of people offering financial advice out there that it can be difficult to know who to trust and what methods are worth following. He can also be a fairly controversial figure, which has garnered him some flack about his workplace policies and methods. However, I’m not here to judge him on these aspects.
Instead, I’m exploring his 7 Baby Steps and if they are worth following to better your finances.
Who is Dave Ramsey? Financial freedom guru, radio presenter, and businessman with a cult following; Ramsey specializes in helping individuals complete their own total money makeover. He covers all aspects of personal finance; including credit cards, interest rates, student loans, Roth IRAs and daily budgeting. His unique emergency fund and “debt snowball” methods have garnered him a huge following around the globe.
After finding his family in a whole host of debt, Dave worked hard to pull them out and keep their books in the green. He began on Nashville radio in 1992, with a vision to counsel others into financial security.
Dave has since had his own tv show, “The Dave Ramsey Show” and filmed an acclaimed documentary called Maxed Out. It follows the predatory practices of the credit card industry. The current net worth of Dave Ramsey sat at approximately $55 million+ in 2019. Other sites put his net worth up closer to $200 million!
What Are Dave Ramsey’s Baby Steps About?
Before you begin your total money makeover, Dave Ramsey has set out 7 Baby Steps in order to specifically tackle different areas of your finances. The process helps build good money habits and enforce the discipline for many who haven’t previously been able to stick with it.
The 7 Baby Steps break your financial plan into manageable actions. And they’ll allow you to feel accomplished without being overwhelmed by the mountain of work to be done.
What are the 7 baby steps of Dave Ramsey?
To continue reading, please go to the original article here:
How Do I Save Up an Emergency Fund?
.How Do I Save Up an Emergency Fund?
My Two Cents Jan. 14, 2021 By Charlotte Cowles
I know I’m supposed to have an emergency fund, and I want to make that happen this year. However, I’m not really sure how to go about it. I feel like I can barely pay my bills as it is, and I’m still working my way through some credit-card debt that I built up when I first moved to New York in my early 20s (I’m now 27). I paid off about $5K of it last year, but I have about $4K left. I also have private student loans that I’m paying at the same time. How do I balance all of these? Should I even bother trying to save while I still have credit-card debt, or is it better to tackle things one at a time?
Emergency funds get a lot of fanfare. And rightfully so! You can’t argue with the fact that having some extra cash lying around is helpful when the world goes to hell. But the problem with emergency funds is that they are great in theory and very, very difficult to put into practice. And that’s why most people never get around to saving one — they’ve got more urgent financial demands than a hypothetical rainy day.
But it’s also important to learn how to multitask with your money, and toggle between competing short- and long-term priorities. I’m not saying it will be easy or quick, but the good news is that it doesn’t have to be that complicated. Once you make a plan, you can (and should) put most of the process on autopilot — and then be patient.
How Do I Save Up an Emergency Fund?
My Two Cents Jan. 14, 2021 By Charlotte Cowles
I know I’m supposed to have an emergency fund, and I want to make that happen this year. However, I’m not really sure how to go about it. I feel like I can barely pay my bills as it is, and I’m still working my way through some credit-card debt that I built up when I first moved to New York in my early 20s (I’m now 27). I paid off about $5K of it last year, but I have about $4K left. I also have private student loans that I’m paying at the same time. How do I balance all of these? Should I even bother trying to save while I still have credit-card debt, or is it better to tackle things one at a time?
Emergency funds get a lot of fanfare. And rightfully so! You can’t argue with the fact that having some extra cash lying around is helpful when the world goes to hell. But the problem with emergency funds is that they are great in theory and very, very difficult to put into practice. And that’s why most people never get around to saving one — they’ve got more urgent financial demands than a hypothetical rainy day.
But it’s also important to learn how to multitask with your money, and toggle between competing short- and long-term priorities. I’m not saying it will be easy or quick, but the good news is that it doesn’t have to be that complicated. Once you make a plan, you can (and should) put most of the process on autopilot — and then be patient.
First things first: Congratulations on paying down more than half of your credit-card debt. Sallie Krawcheck, the CEO of the financial advisory platform Ellevest, once told me that consumer debt was “poison” for your finances and you should treat it accordingly. With that in mind, I recommend rolling your remaining balance onto a zero-interest credit card (also known as a balance-transfer card), which will give you a limited time window where your debt won’t accrue interest and you can get rid of it even faster. Be strategic about making sure you can pay it off within that window, because once it’s closed, the interest rate will skyrocket again.
In the meantime, figure out how big your emergency fund should be. The best way to do that is by examining where your money currently goes. Compile your expenses from the past few months (print out your debit and credit card bills, look at your bank statements, etc.) and write them all down. Then you can see how much you absolutely need to support your basic needs — loan bills, groceries, rent, and so forth — and what you could cut if you had to. You can also try using a free budget template (Mint has one, and I like this spreadsheet from Girls Night In, too) to make sure you aren’t forgetting anything.
From there, calculate a bare-bones monthly budget that you could survive on if things got tight. Multiply that by three, and you’ve got the minimum amount for your emergency fund. This is your starting goal.
To continue reading, please go to the original article here:
https://www.thecut.com/article/how-do-i-save-up-an-emergency-fund.html
Americans' Biggest Money Blunders
Suze Orman Says These Are Americans' Biggest Money Blunders
Esther Trattner Sat, January 23, 202
Best-selling personal finance author and TV personality Suze Orman has been inspiring Americans for decades to make better money moves and avoid serious financial mistakes. She's been as busy as ever in 2020, providing consumers with advice on how to weather the coronavirus crisis. In times of hardship and prosperity, Orman will be the first to tell you that what you don't do with your money may be even more important than what you do with it.
Here are 34 of her most fundamental tips for avoiding financial blunders, so you can save more money and make it grow.
1. Don't be too quick to buy a home
Homeownership is part of the American dream, and today's historically low mortgage rates have made homebuying even more appealing. But it's not always the right choice.
Suze Orman Says These Are Americans' Biggest Money Blunders
Esther Trattner Sat, January 23, 202
Best-selling personal finance author and TV personality Suze Orman has been inspiring Americans for decades to make better money moves and avoid serious financial mistakes. She's been as busy as ever in 2020, providing consumers with advice on how to weather the coronavirus crisis. In times of hardship and prosperity, Orman will be the first to tell you that what you don't do with your money may be even more important than what you do with it.
Here are 34 of her most fundamental tips for avoiding financial blunders, so you can save more money and make it grow.
1. Don't be too quick to buy a home
Homeownership is part of the American dream, and today's historically low mortgage rates have made homebuying even more appealing. But it's not always the right choice.
"Sometimes it makes sense to own a home," Orman tells CNBC.com. "And sometimes, depending on where you live, it makes sense to simply rent."
If you're in an expensive city, Orman says why not invest in the stock market instead of pouring a lot of money into property? That way, you can grow your savings — maybe into a down payment on the home of your dreams. A good way to get into investing is by using a popular stock trading app that doesn't charge commissions and allows you to buy fractions of shares with as little as $1.
2. Don't lease a car
In Suze Orman's words, "you should never, ever ever ever, lease a car." If you lease, you'll sink your money into several years' worth of car payments and be empty-handed when the lease term is done. Financing is a better option, but Orman says if it will take longer than three years to pay off the car, then it’s out of your price range.
Buying a used car is another way to go. Models that are just a few years old will have great safety specifications and the same audio-visual tech as a new car, at a fraction of the price.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/suze-orman-says-americans-biggest-190000626.html
Dave Ramsey Says These Are 10 Reasons You're Not Getting Ahead
.Dave Ramsey Says These Are 10 Reasons You're Not Getting Ahead
Sarah Cunnane January 21, 2021
Talk-radio host Dave Ramsey says you can solve your money troubles just as soon as you stop causing them. The money management guru has been doling out his signature blend of tough-love financial advice and Biblical wisdom since 1992. He learned it all the hard way: In his 20s, Ramsey built a million-dollar fortune flipping houses but lost it all when banks started calling in his debts. He had to buckle down to build back up from bankruptcy.
Now his radio show is syndicated on more than 600 stations, and he’s the author of several books. He teaches Americans how to save more money and avoid wallowing in debt — even during the current financial crisis.
Dave Ramsey Says These Are 10 Reasons You're Not Getting Ahead
Sarah Cunnane January 21, 2021
Talk-radio host Dave Ramsey says you can solve your money troubles just as soon as you stop causing them. The money management guru has been doling out his signature blend of tough-love financial advice and Biblical wisdom since 1992. He learned it all the hard way: In his 20s, Ramsey built a million-dollar fortune flipping houses but lost it all when banks started calling in his debts. He had to buckle down to build back up from bankruptcy.
Now his radio show is syndicated on more than 600 stations, and he’s the author of several books. He teaches Americans how to save more money and avoid wallowing in debt — even during the current financial crisis.
Here are 10 reasons you're not getting ahead, according to Dave Ramsey.
1. Don’t try to tackle your biggest debts first
When you’re deep in debt with multiple loans, freeing yourself can seem impossible. That’s why Ramsey suggests the “debt snowball method.”
Rather than start with the loan with the highest interest rate, Ramsey says to pay off the loan with the lowest balance first, making only minimum payments on the rest. The idea is that each small victory inspires you to tackle bigger challenges.
“It’s more about behavior change than numbers. Once your income is freed up, you can finally use it to make progress toward your savings goals,” Ramsey explains on his website.
The snowball method is one of Ramsey's most common pieces of advice but it's also controversial. If your credit score is hurting, it may be better to use an online service that can help you determine which bills to pay off first to get your score back up.
2. Don’t try to justify frivolous purchases
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/dave-ramsey-says-10-reasons-150000383.html
How To Rebound From a Bad Financial Year
.How To Rebound From a Bad Financial Year: 2020 Edition
By Andrew Lisa January 20, 2021
Follow these steps to improve your financial health.
Many Americans toasted the end of 2020 and woke up in 2021 realizing that while the end is in sight, we still have a long way to go to conquer the pandemic and right the economy. You may be one of millions of Americans who lost their jobs, closed a business, faced unexpected expenses or experienced some other major loss due to COVID-19. The first thing to know is this: You are not alone.
Even more comforting, you still have the power to achieve financial freedom despite the setbacks of last year. With a little effort, you can shore up your budget, reduce your expenses and manage your financial recovery. The following short list of actions you can take right now will help you improve your financial health this year.
How To Rebound From a Bad Financial Year: 2020 Edition
Follow these steps to improve your financial health.
By Andrew Lisa January 20, 2021
Many Americans toasted the end of 2020 and woke up in 2021 realizing that while the end is in sight, we still have a long way to go to conquer the pandemic and right the economy. You may be one of millions of Americans who lost their jobs, closed a business, faced unexpected expenses or experienced some other major loss due to COVID-19. The first thing to know is this: You are not alone.
Even more comforting, you still have the power to achieve financial freedom despite the setbacks of last year. With a little effort, you can shore up your budget, reduce your expenses and manage your financial recovery. The following short list of actions you can take right now will help you improve your financial health this year.
Listen To the Experts
One of the easiest steps to take costs nothing but time and could save you a lot of money in the long run: Take advice from people who know what they’re talking about. Personal finance podcasts like “Afford Anything,” “Women & Money,” “Brown Ambition” and “Future Rich” put some of the world’s foremost experts on the subject within your reach — and it costs nothing to listen. Likewise for YouTube channels like “Wealth Hacker” and “BeatTheBush” — and those are just a few.
Do some research, ask your Facebook friends what they like and subscribe to a few shows. Make your time pay by spending it listening to experts who specialize in solving the exact kinds of problems you’re experiencing.
Confront the Reality
It’s natural for people who are behind on their finances to block it all out because it feels too overwhelming to deal with — natural, but unhelpful. Only by staring the beast in the eye can you begin to create a strategy on how to defeat it.
Consider an app like Mint, which unifies your entire financial life under one site. That includes your income, credit cards, subscriptions, bank accounts, loans, investments, retirement accounts and all the rest. You’ll get a clear picture of what’s coming in, what’s going out, which debts are most dire, which expenses are costing you the most and what changes need to be made. Conquering the crucial psychological barrier of confronting the situation is the first step to changing it.
Consider a Personal Loan
To continue reading, please go to the original article here:
40 Money Habits That Can Leave You Broke
.40 Money Habits That Can Leave You Broke
By Alaina Tweddale November 19, 2020
Don't fall victim to these bad financial habits. Big or small, some financial habits can zap a solid financial plan and leave smart savers with empty wallets. To avoid buyer’s remorse and similar guilt about neglecting your finances, you need to know what habits might be costing you extra.
1. Your App Addiction
In the list of things to waste money on, smartphone apps are a big one. Those $1.99 purchases seem inexpensive enough, but they can snowball — especially if you have kids who are adding to the overall purchase price or frequency. Consider free app downloads exclusively or cap yourself and your family with a monthly app budget.
40 Money Habits That Can Leave You Broke
By Alaina Tweddale November 19, 2020
Don't fall victim to these bad financial habits. Big or small, some financial habits can zap a solid financial plan and leave smart savers with empty wallets. To avoid buyer’s remorse and similar guilt about neglecting your finances, you need to know what habits might be costing you extra.
1. Your App Addiction
In the list of things to waste money on, smartphone apps are a big one. Those $1.99 purchases seem inexpensive enough, but they can snowball — especially if you have kids who are adding to the overall purchase price or frequency. Consider free app downloads exclusively or cap yourself and your family with a monthly app budget.
2. Paying Bank Fees
Many banking fees can be avoided, so there’s no reason to pay these if you don’t have to. Instead, find a financial institution that will allow you to avoid certain fees.
With the right checking account, you can avoid the monthly fee with a monthly direct deposit or minimum daily balance of $500 or more. When it’s that easy to avoid a fee, you should always take advantage so you can keep more of your money in your account.
3. Not Checking Your Credit Report
People with top-tier credit ratings qualify for the lowest finance rates when car or home shopping. Over a 30-year term, a quarter of a percentage point can add up to thousands of dollars.
Check your credit history regularly and clean up any problems as soon as they arise.
4. Having Wine With Dinner
Buying wine with dinner is a pricey proposition. Restaurateurs routinely mark up bottles by about three times the wholesale price — sometimes more. Consider a BYOB-friendly restaurant instead or, if you can bear it, skip the wine altogether when dining out.
5. Leasing Your Car
A 2019 cost-comparison report by car cost site Edmunds found that the overall cost of leasing a compact SUV can be over $5,000 more than the cost of buying a similar car used, and it is about $7,000 more than buying the same car new when you take equity into consideration.
Drop the lease and invest the difference, and you can boost your overall financial scenario.
To continue reading, please go to the original article here:
https://www.gobankingrates.com/saving-money/savings-advice/money-habits-that-can-leave-you-broke/
Savings Tricks From Regular People Who Are Sitting on Millions
.Savings Tricks From Regular People Who Are Sitting on Millions
Saving $1 million is possible with good financial habits.
By Joel Anderson
One million dollars is a major milestone for almost anyone. It’s the sort of nest egg that can fund a generous lifestyle in retirement or even build your dream home. However, for many, it’s also a pipe dream. Understanding how to make a million dollars is a question for the wealthy, not the average American.
However, in many ways, that’s a dangerous misconception. In fact, building up your savings to $1 million certainly isn’t easy, but a lottery ticket or huge business deals aren’t the only paths available. For plenty of people, smart budgeting, strategic investments and just good old-fashioned horse sense can combine to create the sort of habits that will put $1 million well within reach, even if you’re living a relatively modest life.
Savings Tricks From Regular People Who Are Sitting on Millions
Saving $1 million is possible with good financial habits.
By Joel Anderson
One million dollars is a major milestone for almost anyone. It’s the sort of nest egg that can fund a generous lifestyle in retirement or even build your dream home. However, for many, it’s also a pipe dream. Understanding how to make a million dollars is a question for the wealthy, not the average American.
However, in many ways, that’s a dangerous misconception. In fact, building up your savings to $1 million certainly isn’t easy, but a lottery ticket or huge business deals aren’t the only paths available. For plenty of people, smart budgeting, strategic investments and just good old-fashioned horse sense can combine to create the sort of habits that will put $1 million well within reach, even if you’re living a relatively modest life.
If that seems implausible to you, it shouldn’t — especially after reading these real stories from a few normal people who have hit that $1 million goal. You’ll probably notice an absence of lofty advice about sparking a huge windfall or a series of get-rich-quick schemes. Instead, these people stress that the answer to the question of how to save a million dollars involves core financial habits, which are as valuable when you have $1 to your name as they are for those who have $1 million.
Carl Jensen, Blogger at 1500 Days to Freedom
Carl Jensen, the writer behind the blog 1500 Days to Freedom, has a net worth that is the source of considerable consternation for many of his neighbors who note his modest home and thrifty ways. However, Jensen puts his net worth at about $2.3 million, including approximately $1.8 million in investments.
“The best story about our situation is that a neighbor once told another neighbor that she thought we were poor because she saw me working on my car,” Jensen said.
So how has Jensen managed to save that much money?
He Made a Conscious Choice To Downsize
To continue reading, please go to the original article here:
Here’s How Much Emergency Cash You Need Stashed If an Emergency Happens
.Here’s How Much Emergency Cash You Need Stashed If an Emergency Happens
Are you financially prepared for a national emergency?
By Jaime Catmull December 17, 2020
You’ve probably heard time and again that it’s important to have a rainy-day fund set up “just in case” something unexpected were to happen. But we’re now at a time when having an emergency fund is more vital than ever.
The coronavirus pandemic has already had devastating effects on the economy at large and, on an individual level, it has led to job loss and reduction of hours for many workers around the world. Even if the coronavirus’ financial impacts haven’t hit you personally yet, here’s how to be prepared in case it does — plus how to set up a fund for unexpected future national emergencies.
Here’s How Much Emergency Cash You Need Stashed If an Emergency Happens
Are you financially prepared for a national emergency?
By Jaime Catmull December 17, 2020
You’ve probably heard time and again that it’s important to have a rainy-day fund set up “just in case” something unexpected were to happen. But we’re now at a time when having an emergency fund is more vital than ever.
The coronavirus pandemic has already had devastating effects on the economy at large and, on an individual level, it has led to job loss and reduction of hours for many workers around the world. Even if the coronavirus’ financial impacts haven’t hit you personally yet, here’s how to be prepared in case it does — plus how to set up a fund for unexpected future national emergencies.
![cash-stash-underneath-bed-iStock-516392428-848x477[1].jpg](https://images.squarespace-cdn.com/content/v1/5d5222a44813620001d89582/1611234073148-KQ2JBDEXUKVC8NINYION/cash-stash-underneath-bed-iStock-516392428-848x477%5B1%5D.jpg)
Why You Need a National Emergency Fund
Part of being prepared for any contingency, big or small, is having a reserve of emergency cash at your disposal at all times. When you can’t rely on accessing your funds electronically, you’ll need some legal tender to buy food, gas or other necessities.
“Whether it’s Mother Nature or some other disaster out of your control, you always want to be prepared by having some emergency cash on hand,” said Annalee Leonard, an investment advisor representative and president of Mainstay Financial Group. “Banks and ATMs may not be up and running for days after a strong storm. I recommend my clients have three to five days’ worth of spending money, just in case.”
How To Decide How Much To Save
To decide how much to save for an emergency fund, you’ll need to ask yourself a couple of questions:
How much will I need for an extreme catastrophic event? How much can I afford to save?
To continue reading, please go to the original article here:
Tips To Keep Your Finances in Order Without Sacrificing What You Want
.Tips To Keep Your Finances in Order Without Sacrificing What You Want
Cameron Huddleston Wed, January 20, 2021,
If you’re trying to live on a budget, you might not feel like you can have the things you want. But you don’t have to resign yourself to living a bare-bones existence if your budget is tight — it’s possible to live on a budget and get some of the stuff you want.
Create a Budget That Prioritizes Needs
If your income is limited, make sure it covers your needs first. “Food, shelter, clothing and utilities are needs,” said Donna Freedman, author of “Your Playbook For Tough Times. “The rest is just a series of wants.”
Creating a budget can help. List the expenses you have to pay to survive. Add them up, and then subtract them from your income. If there’s not much left over, you might have to make some sacrifices. Don’t think of cutting out wants to cover needs as deprivation, though — think of it as a smart use of available funds, Freedman said.
Tips To Keep Your Finances in Order Without Sacrificing What You Want
Cameron Huddleston Wed, January 20, 2021,
If you’re trying to live on a budget, you might not feel like you can have the things you want. But you don’t have to resign yourself to living a bare-bones existence if your budget is tight — it’s possible to live on a budget and get some of the stuff you want.
Create a Budget That Prioritizes Needs
If your income is limited, make sure it covers your needs first. “Food, shelter, clothing and utilities are needs,” said Donna Freedman, author of “Your Playbook For Tough Times. “The rest is just a series of wants.”
Creating a budget can help. List the expenses you have to pay to survive. Add them up, and then subtract them from your income. If there’s not much left over, you might have to make some sacrifices. Don’t think of cutting out wants to cover needs as deprivation, though — think of it as a smart use of available funds, Freedman said.
Build an Emergency Fund
If you’re living on a budget, you might not think you can afford to set aside money each month in an emergency fund. But would you be able to afford an unexpected cost without savings?
“The thing that keeps you out of debt is to find room in your budget to grow your savings,” McClary said. You won’t be able to build your savings quickly, but if you can stash away a little each month, you can fall back on your emergency fund rather than go into debt when something unexpected happens.
Tackle Your Debt in Smart Ways
When you’re struggling with debt, you don’t want to just keep paying the minimum balance on what you owe. However, you may not be able to afford much larger payments, so you should look at other smart ways to tackle your debt.
Discover® Personal Loans could be worth checking out if you’re dealing with high-interest debt. A personal loan could consolidate that debt into one set regular monthly payment. And with Discover’s annual percentage rates of 6.99% to 24.99%, you could potentially save money on interest over the time it takes to pay off your higher-interest debt.
Take Advantage of Tax Breaks
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/tips-keep-finances-order-without-100000892.html
Survey Says We're Keeping Too Much Money In Cash — Do This Instead
.Survey Says We're Keeping Too Much Money In Cash — Do This Instead
Shane Murphy Wed, January 20, 2021
A survey says we're keeping too much money in cash — do this instead
Despite the economic calamity of the past year, a recent study says just over half the country has managed to squirrel away some cash since the first lockdown. That’s encouraging news — however, almost 80% of savers are planning to keep their money liquid by leaving it in their checking or savings account, the Franklin Templeton-Gallup Economics of Recovery Study reveals. While it’s always a smart idea to maintain a healthy emergency fund — experts suggest keeping enough cash on hand for three to six months worth of expenses — dumping all of your savings into a bank account is rarely the best move in the long run.
It’s tempting to play it as safe as possible right now, but your future needs will still be there once the pandemic is over. Here are some things to consider before you bury your savings in the bank.
Survey Says We're Keeping Too Much Money In Cash — Do This Instead
Shane Murphy Wed, January 20, 2021
A survey says we're keeping too much money in cash — do this instead
Despite the economic calamity of the past year, a recent study says just over half the country has managed to squirrel away some cash since the first lockdown. That’s encouraging news — however, almost 80% of savers are planning to keep their money liquid by leaving it in their checking or savings account, the Franklin Templeton-Gallup Economics of Recovery Study reveals. While it’s always a smart idea to maintain a healthy emergency fund — experts suggest keeping enough cash on hand for three to six months worth of expenses — dumping all of your savings into a bank account is rarely the best move in the long run.
It’s tempting to play it as safe as possible right now, but your future needs will still be there once the pandemic is over. Here are some things to consider before you bury your savings in the bank.
Interest rates for traditional bank accounts stink
The biggest problem with leaving your savings in a checking or traditional savings account is that your money won’t have a chance to grow. Traditional accounts pay practically nothing in interest; as of January 2021, the average interest rate for a checking account is 0.04%. Any meager earnings you see will be obliterated by inflation.
However, it’s not hard to find high-yield savings accounts that offer 10 times more interest — and provide the same ease of access you would have with a traditional account. And if you’re willing to give up some liquidity on a portion of your savings, even for a few months, you may be able to earn even more interest with a certificate of deposit (CD).
CDs offer higher interest rates than most other savings options but lock your money away for a predetermined period. If you run into some unexpected trouble, you can pull out your cash early; however, you’ll have to pay a penalty that could wipe out a big chunk of your earnings.
Investing a chunk of your savings can pay off
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/americans-burying-savings-bank-could-150000131.html
10 Simple Habits of Money-Smart Individuals
.10 Simple Habits of Money-Smart Individuals
Tracie Fobes Wed, January 20, 2021,
Mark Cuban. Warren Buffett. Michael Bloomberg. Most people will never be as rich as the world’s wealthiest billionaires, but you can still learn from their smart money habits. From ditching debt to paying bills on time, fiscally savvy folks have developed good habits and plans that keep them in financial shape. And with a little effort, you too can master their tricks for managing money. If you’re looking to break bad money habits and get on more solid financial footing, follow these fiscal tips from the pros.
Have a Written Budget
Many people have a budget — sort of. They know who they have to pay each month and how much. However, they don’t have anything in writing.
10 Simple Habits of Money-Smart Individuals
Tracie Fobes Wed, January 20, 2021,
Mark Cuban. Warren Buffett. Michael Bloomberg. Most people will never be as rich as the world’s wealthiest billionaires, but you can still learn from their smart money habits. From ditching debt to paying bills on time, fiscally savvy folks have developed good habits and plans that keep them in financial shape. And with a little effort, you too can master their tricks for managing money. If you’re looking to break bad money habits and get on more solid financial footing, follow these fiscal tips from the pros.
Have a Written Budget
Many people have a budget — sort of. They know who they have to pay each month and how much. However, they don’t have anything in writing.
When you have a written budget, you see exactly where your money is going. Best of all, you can direct your money where you want it to go.
Your budget is your roadmap to financial success, so make sure you include every single expense. Don’t forget about that coffee you grab on the way to work or the money you spend on parking every day.
Pay Down Debt
Take the steps necessary to pay off your debts. You will need to create a debt payoff plan to make it happen.
Start by assessing the types of debt you carry and determining what might be paid off first. Your credit card debt should be the first thing you look at. In addition to possibly carrying a high interest rate, it typically has variable rates. Because credit cards are revolving debt, if you only make the minimum payment required each month, you may not be able to pin down an end date for your debt.
Consolidating revolving debt into a personal loan lets you lock in a repayment term. In other words, you define an end date to that debt. Plus, by consolidating higher-rate debt you may save money on interest. A Discover® personal loan offers annual percentage rates between 6.99% and 24.99%. And with a fixed rate Discover personal loan, you won’t have to worry about increasing interest rates.
It might take some time, but you can pay off debt if you’re diligent.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/10-simple-habits-money-smart-100000987.html