7 Steps To Take for Financial Wellness in 2021
.7 Steps To Take for Financial Wellness in 2021
Nicole Spector Thu, July 8, 2021
At the start of 2021, you may have vowed to pay down debt, boost your credit score or build an emergency fund. Perhaps you're still going strong with these financial goals, or perhaps you’re starting to lose your momentum. Maybe you've surrendered altogether.
If you’re in any of these boats, rest assured that you’re not alone. According to a study by researchers at Scranton University, only 19% of people keep their resolutions, and most give up by mid-January. There are a lot of reasons why we fail at our resolutions, and usually, it has nothing to do with our willpower or lack thereof. One common reason we’re unsuccessful is that we don’t give ourselves clear paths to achieve the lofty goals we’ve set. Sometimes, all you need to triumph is to simply reframe your approach.
We consulted financial experts to learn common money goals that are harder to stick to than they might seem, and what you can do to make them easier to follow through on.
7 Steps To Take for Financial Wellness in 2021
Nicole Spector Thu, July 8, 2021
At the start of 2021, you may have vowed to pay down debt, boost your credit score or build an emergency fund. Perhaps you're still going strong with these financial goals, or perhaps you’re starting to lose your momentum. Maybe you've surrendered altogether.
If you’re in any of these boats, rest assured that you’re not alone. According to a study by researchers at Scranton University, only 19% of people keep their resolutions, and most give up by mid-January. There are a lot of reasons why we fail at our resolutions, and usually, it has nothing to do with our willpower or lack thereof. One common reason we’re unsuccessful is that we don’t give ourselves clear paths to achieve the lofty goals we’ve set. Sometimes, all you need to triumph is to simply reframe your approach.
We consulted financial experts to learn common money goals that are harder to stick to than they might seem, and what you can do to make them easier to follow through on.
1. Goal: Pay Down Debt
Why it's hard to do: “Debt can be overwhelming, and many people don't even know how much debt they have so tallying it up and organizing all your bills can feel insurmountable,” said Steffa Mantilla, certified financial education instructor, Money Tamer. “Then once you do know how much debt you have, there are conflicting thoughts on debt payoff strategies and whether you should even pay your debt off or keep it.”
How to do it better: “Commit to taking an hour listing all your debts in a spreadsheet, then list them from the smallest debt to the largest debt,” Mantilla said. “By focusing first on paying off the smallest debt, you'll get to a 'win' faster. You'll likely be able to pay off a few small debts before getting to the larger more daunting amounts. These smaller wins will give you the motivation to propel you through the larger debt payoff amounts.”
2. Goal: Stick To a Budget
Why it’s hard to do: “As we’ve seen this past year, life is unpredictable and creating a budget can help safeguard you from some of the uncertainty,” said April Schneider, head of consumer and small business products at Bank of America. “But, if you set a rigid budget and never change it, it may not remain relevant from one month to the next as your income and expenses fluctuate. Even more so, when it is safer to travel and dine out without restrictions, your spending habits may look different and you may find yourself spending more than anticipated in certain categories.”
How to do it better: “I recommend routinely adjusting your budget to maintain its effectiveness and using a rewards credit card that matches your spending habits to help you stay on track with your financial goals.”
Christopher Stroup, a financial advisor working for Abacus Wealth Partners, suggests handing some of the chores of budgeting over to software to see better success. “Some of our favorite resources, such as Mint or You Need a Budget, allow users to link all of their accounts into a central financial hub,” Stroup said.
“From there, the software can suggest a budget given your historical spending. One of my favorite tricks is to teach the software to recognize certain expenses and put them in the proper budget category I have created. Moving forward, this saves me a tremendous amount of time as I no longer have to itemize my expenses by placing them in the appropriate spending bucket. The software does this for me, which gives me more time to understand where I met (or missed) my budget goal for the month.”
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/7-steps-financial-wellness-2021-120041798.html
Dynastic Wealth
.Dynastic Wealth
Published July 7, 2021 by Jim Wang
As the lyrical poet Christopher Wallace once said, “Mo’ money, mo’ problems.”
I don’t know what it’s like to have dynastic wealth. We’ve done well financially and as the numbers get bigger, sometimes the stress of the markets can bleed over.
1% of $10,000 is a mere hundred bucks. It’s not chump change, per se, but it’s something I can accept and stomach without incident.
1% of $1,000,000 is $10,000 – which is more than twice what my starting salary was at my first job out of college with Northrop Grumman (and in fact is more than any monthly salary I’ve ever had).
I can only imagine what it’s like to have dynastic wealth, especially one you didn’t have a hand in building, and seeing similar activity.
Dynastic Wealth
Published July 7, 2021 by Jim Wang
As the lyrical poet Christopher Wallace once said, “Mo’ money, mo’ problems.”
I don’t know what it’s like to have dynastic wealth. We’ve done well financially and as the numbers get bigger, sometimes the stress of the markets can bleed over.
1% of $10,000 is a mere hundred bucks. It’s not chump change, per se, but it’s something I can accept and stomach without incident.
1% of $1,000,000 is $10,000 – which is more than twice what my starting salary was at my first job out of college with Northrop Grumman (and in fact is more than any monthly salary I’ve ever had).
I can only imagine what it’s like to have dynastic wealth, especially one you didn’t have a hand in building, and seeing similar activity.
I Was Taught From a Young Age to Protect My Dynastic Wealth [The Atlantic] – “When you come into money as I did—young, scared, and not very savvy about the world—you are taught certain precepts as though they are gospel: Never spend the “corpus” (also known as the capital) you were left. Steward your assets to leave even more to your children, and then teach them to do the same. And finally, use every tool at your disposal within the law, especially through estate planning, to keep as much of that money as possible out of the hands of government bureaucrats who will only misuse it.”
I Was Taught From a Young Age to Protect My Dynastic Wealth
A common ideology underlies the practices of many ultra-wealthy people: The government can’t be trusted with money.
By Abigail Disney JUNE 17, 2021
About the author: Abigail Disney is a documentary filmmaker, a co-founder of Fork Films, and the host of the podcast All Ears.
When ProPublica published its report last week on the tax profiles of 25 of the richest Americans, jaws dropped across the United States. How was it possible that plutocrats such as Elon Musk, Jeff Bezos, and Warren Buffett could pay nothing in income taxes to the federal government? What sneaky sleights of pen, what subterfuge, what acts of turpitude could have led to this result?
The shock stems, in part, from a disturbing reality: Nowhere does ProPublica assert that these men cheated, lied, or did anything felonious to lower their tax burdens. The naked fact of the matter is that not a single one of the documented methods and practices that allowed these billionaires to so radically minimize their tax obligations was illegal.
To continue reading, please go to the original article here:
18 Reasons Why You Should Be Using Your Credit Cards More
.18 Reasons Why You Should Be Using Your Credit Cards More
Your card can earn you cash back, rewards and more perks.
By Gabrielle Olya
For a piece of plastic, a credit card can be a very powerful thing. Not only does it make shopping seamless, but many credit cards also come with a number of perks, including ways to save money on purchases and added consumer protections. As long as you are a responsible credit card user without outstanding debt, there’s no reason why you shouldn’t use your credit card to pay for almost everything.
It Helps You Build Credit
Your credit score is based on a number of factors, including your repayment history, the length of your credit history and your credit utilization. Responsible credit card use — which includes making on-time payments, keeping credit cards open for long periods of time and only using a small percentage of your available credit — will help your credit score to rise.
18 Reasons Why You Should Be Using Your Credit Cards More
Your card can earn you cash back, rewards and more perks.
By Gabrielle Olya
For a piece of plastic, a credit card can be a very powerful thing. Not only does it make shopping seamless, but many credit cards also come with a number of perks, including ways to save money on purchases and added consumer protections. As long as you are a responsible credit card user without outstanding debt, there’s no reason why you shouldn’t use your credit card to pay for almost everything.
It Helps You Build Credit
Your credit score is based on a number of factors, including your repayment history, the length of your credit history and your credit utilization. Responsible credit card use — which includes making on-time payments, keeping credit cards open for long periods of time and only using a small percentage of your available credit — will help your credit score to rise.
You Might Be Able To Get a Sign-On Bonus
If you just opened a new credit card, making purchases with it can earn you a major sign-on bonus. This could be a cash bonus, extra rewards points or extra cash back. For example, the PenFed Gold Visa® Card gives new cardholders a $100 statement credit when they spend $1,500 within the first 90 days. If you normally spend that much, it can be worth considering this card to get the statement credit.
It Protects You From Fraud
Fraudulent purchases made with your credit card can be easily disputed. Things aren’t so seamless with debit cards when the money is taken from your account and must be recovered. Using credit cards can give you that extra peace of mind from knowing that you won’t be out any money in the case of theft or fraud.
You Can Rack Up Reward Points
Why not get rewarded for the purchases you would be making anyway? Many credit cards allow you to earn reward points for every dollar you spend, which can then be redeemed for travel rewards, gift cards, merchandise and more, depending on the card.
They Make It Easy To Track Your Spending
It’s hard to keep track of payments you make in cash, but when you pay for purchases with a credit card, it’s very easy to see how much you are spending on what. This can help you to easily track your cash flow and see areas where you might be spending too much.
To continue reading, please go to the original article here:
https://www.gobankingrates.com/credit-cards/advice/reasons-should-using-credit-cards/
The Ultimate Financial Planning Guide: Do It Like the Pros in 6 Steps
.The Ultimate Financial Planning Guide: Do It Like the Pros in 6 Steps
A financial plan goes beyond budgeting for regular expenses. It’s the process of managing short- and long-term finances. Taking good financial planning steps now can mean the difference between achieving your financial goals and living paycheck to paycheck.
Certified Financial Planners follow a set of steps to create recommendations for their clients. With some modifications, you can use the same process to develop your own financial plan.
The Ultimate Financial Planning Guide: Do It Like the Pros in 6 Steps
A financial plan goes beyond budgeting for regular expenses. It’s the process of managing short- and long-term finances. Taking good financial planning steps now can mean the difference between achieving your financial goals and living paycheck to paycheck.
Certified Financial Planners follow a set of steps to create recommendations for their clients. With some modifications, you can use the same process to develop your own financial plan.
What Are the 6 Steps in the Financial Planning Process?
Here are the six steps in the financial planning process, according to the Certified Financial Planner Board of Standards:
You may see variations with lists of five or seven steps, but the underlying principles are the same. Any of these lists of financial planning steps can be a model for your own personal financial plan.
Step 1: Set Your Financial Goals
The financial planning process starts when the planner establishes a relationship with you to learn about your goals, lifestyle and values. It’s worth the time to explore these ideas on your own.
When you’re working toward a specific goal, you’re more likely to stick to habits that will get you there. Take some time to think about the financial goals you want to reach. Here are some to consider.
Financial Goals To Consider
Buy a house.
Pay for your children’s college education.
Go on a dream vacation.
Fund your retirement.
Start a business.
Get out of debt.
You can — and should — have short and long-term goals. If something is important to you, write it down
Step 2: Put a Price Tag on Your Goals
In the first step, you identified the goals you want to achieve in the future. Next, figure out how much you’ll need to save to accomplish your goals.
To continue reading, please go to the original article here:
The 12 Most Controversial Price Hikes of the Last Year
.The 12 Most Controversial Price Hikes of the Last Year
Prices have soared for possible treatments and in-demand items.
By Gabrielle Olya March 12, 2021
When former President Donald Trump was ill with COVID-19, he was administered several different treatments to relieve his symptoms and shorten the course of his illness. These included Regeneron's investigational monoclonal antibody therapy, antiviral drug remdesivir, corticosteroid drug dexamethasone, supplemental oxygen, zinc, vitamin D, famotidine, melatonin and daily aspirin, CNN reported.
After the details of Trump's treatment were reported, shares of Regeneron Pharmaceuticals leaped almost 10%, Business Insider reported. And the cost of his remdesivir treatment? A cool $3,120 for the five-day treatment course -- a price that has been met with mixed reactions since its maker Gilead Sciences announced it in June.
While the price of Trump's miracle drug is already high, it's not the only costly item of the pandemic.
The 12 Most Controversial Price Hikes of the Last Year
Prices have soared for possible treatments and in-demand items.
By Gabrielle Olya March 12, 2021
When former President Donald Trump was ill with COVID-19, he was administered several different treatments to relieve his symptoms and shorten the course of his illness. These included Regeneron's investigational monoclonal antibody therapy, antiviral drug remdesivir, corticosteroid drug dexamethasone, supplemental oxygen, zinc, vitamin D, famotidine, melatonin and daily aspirin, CNN reported.
After the details of Trump's treatment were reported, shares of Regeneron Pharmaceuticals leaped almost 10%, Business Insider reported. And the cost of his remdesivir treatment? A cool $3,120 for the five-day treatment course -- a price that has been met with mixed reactions since its maker Gilead Sciences announced it in June.
While the price of Trump's miracle drug is already high, it's not the only costly item of the pandemic.
Chloroquine
Before he got the coronavirus, Trump stated in May 2020 that he was taking daily doses of the antimalarial drug hydroxychloroquine, which he touted as a potential coronavirus cure despite warnings from medical experts and the Food and Drug Administration that it might not be effective and could have potentially harmful side effects, CNN reported. President Joe Biden criticized Trump for taking the drug, calling it “totally irresponsible” during a virtual town hall on May 19.
“There’s no serious medical personnel out there saying to use that drug. It’s counterproductive. It’s not going to help,” Biden said.
In addition to influencing others to take a potentially ineffective drug, Trump’s use of hydroxychloroquine may have had another effect — a price increase for the pharmaceutical. Chloroquine -- the drug from which hydroxychloroquine is derived -- saw price increases during the same period, GoodRx reported.
Entacapone
Entacapone is another medication that's being investigated as a treatment for the coronavirus. It also saw a price increase in 2020, GoodRx reported.
Mytesi
On April 9, 2020, Mytesi -- a drug used to treat HIV -- increased in price by 230% as the manufacturer sought approval from the FDA for use as a treatment for the coronavirus patients with diarrhea, GoodRx reported. The FDA did not approve Mytesi for this use, but its manufacturer is continuing to evaluate its effectiveness against the coronavirus.
Hand Sanitizer
Some sellers on Amazon have resold hand sanitizer for huge markups. One seller, Matt Colvin, was selling bottles for up to $70 each, The New York Times reported. Amazon cracked down on price gouging soon after, and his items were removed from the site.
To continue reading, please go to the original article here:
https://www.gobankingrates.com/saving-money/shopping/controversial-coronavirus-price-hikes/
Americans’ Biggest Financial Regrets of the Decade
.Americans’ Biggest Financial Regrets of the Decade
Laura Woods Tue, June 29, 2021
The old saying often rings true — hindsight is 2020. Everyone makes mistakes, and many of these blunders involve money. Many financial decisions seem like a good idea in the moment, but a few weeks, months or even years later, you realize they weren’t the best choice.
A 2019 survey conducted by Policygenius highlights Americans’ biggest financial regrets of the decade. If you’ve ever made a major purchase you regret or opted to spend money when you should’ve been saving — admit it, you have — you’re not alone. The good news is, financial mishaps can be corrected. If you’re willing to make meaningful changes, you can get yourself out of an uncomfortable financial situation. This might involve making tough sacrifices and/or working extra hours, but it’ll be worth it in the end.
Americans’ Biggest Financial Regrets of the Decade
Laura Woods Tue, June 29, 2021
The old saying often rings true — hindsight is 2020. Everyone makes mistakes, and many of these blunders involve money. Many financial decisions seem like a good idea in the moment, but a few weeks, months or even years later, you realize they weren’t the best choice.
A 2019 survey conducted by Policygenius highlights Americans’ biggest financial regrets of the decade. If you’ve ever made a major purchase you regret or opted to spend money when you should’ve been saving — admit it, you have — you’re not alone. The good news is, financial mishaps can be corrected. If you’re willing to make meaningful changes, you can get yourself out of an uncomfortable financial situation. This might involve making tough sacrifices and/or working extra hours, but it’ll be worth it in the end.
Here’s a look at the top financial regrets, along with advice to help make the problem a thing of the past.
1. . Credit Card Debt
Credit card debt can easily creep up on you. Whether you need to swipe the plastic to pay an unplanned expense or get tempted by something fun — i.e., an expensive pair of shoes or a big screen TV — racking up unpaid balances adds up fast.
One-quarter (25.1%) of people ages 35 and up cite incurring credit card debt as their biggest regret of the decade. Slightly lower, 21.5% of people ages 18 to 34 share this sentiment.
How To Tackle Credit Card Debt
If you have credit card debt, you’re in good company. Consumer credit card debt reached a record-high of $829 billion in 2019, according to Experian. Additionally, retail credit card debt totaled a record-breaking $90 billion.
Now is the time to stop being weighed down by credit card debt. If you’re ready to take action, total up all of your balances, so you know where you stand. Then decide if you’d like to take the avalanche approach — paying the highest interest cards first — or the snowball approach — paying the lowest balance first.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/americans-biggest-financial-regrets-decade-220036381.html
36 Things That Are Worth the Money
.36 Things That Are Worth the Money
These are the products and experiences worth splurging on.
By Jaime Catmull November 4, 2020 Savings Accounts 101
It's always tempting to look for the best deal, but some things are simply worth splurging on — even if you're on a budget. As you decide when to spend and when to save, consider where quality matters to you and which experiences are on your to-do list.
I spoke to financial experts and business leaders to get insight into their thoughts on the best ways to spend money. Some of these recommendations -- like international travel -- might not be realistic now, in the middle of a pandemic, but they're still worth keeping in mind for the future. These are the purchases experts say you won't regret.
36 Things That Are Worth the Money
These are the products and experiences worth splurging on.
By Jaime Catmull November 4, 2020 Savings Accounts 101
It's always tempting to look for the best deal, but some things are simply worth splurging on — even if you're on a budget. As you decide when to spend and when to save, consider where quality matters to you and which experiences are on your to-do list.
I spoke to financial experts and business leaders to get insight into their thoughts on the best ways to spend money. Some of these recommendations -- like international travel -- might not be realistic now, in the middle of a pandemic, but they're still worth keeping in mind for the future. These are the purchases experts say you won't regret.
Hiring a Virtual Assistant
Anthony Clervi, managing partner at Una, said investing in a virtual assistant can be "invaluable." Hiring an efficient assistant to take care of administrative tasks enables you to focus more on the aspects of your work that need your attention and could help shave hours off your workweek.
Virtual assistants typically cost an average of about $16 an hour, according to PayScale.
Working Out With a Personal Trainer
Personal trainers cost an average of $26 per hour, PayScale reports. This might seem like an unnecessary expense, but personal trainers can help you meet fitness goals that you might not be able to achieve on your own — and you can't put a price on your health. The benefits of hiring a trainer include a personalized workout, detailed instruction, motivation, accountability, a variety in your workouts and efficiency, according to Livestrong.
"Hiring a fitness coach is absolutely worth the investment and here's why: If you're Batman, your physical body is your Batmobile, which means it's the vehicle that not only allows you to move and perform optimally as a human being, but keeps you feeling confident and attractive when you look in the mirror each day," said Andrew White, co-founder of IVRY Fitness. "We pay for tons of things in life that function purely for our own entertainment, so why not flip the script and invest in yourself?"
If a personal trainer is out of your budget, do the next best thing and join a gym.
To continue reading, please go to the original article here:
5 Major Money Mistakes To Avoid Once You Turn 60
.5 Major Money Mistakes To Avoid Once You Turn 60
Laura Woods Wed, June 30, 2021
You’ve been working hard your entire adult life and you’re finally nearing retirement. The prospect of having more time to relax and enjoy yourself is exciting, but you’ll need money to do that.
As you wrap up your peak earning years and prepare to step away from the workforce, it’s important to make smart money moves that will protect your nest egg. All it takes is one poor financial choice to throw a wrench in your plans — and financial stability — so take the time to make informed decision
5 Major Money Mistakes To Avoid Once You Turn 60
Laura Woods Wed, June 30, 2021
You’ve been working hard your entire adult life and you’re finally nearing retirement. The prospect of having more time to relax and enjoy yourself is exciting, but you’ll need money to do that.
As you wrap up your peak earning years and prepare to step away from the workforce, it’s important to make smart money moves that will protect your nest egg. All it takes is one poor financial choice to throw a wrench in your plans — and financial stability — so take the time to make informed decision
When faced with a large amount of cash, it can be tempting to share it with loved ones — i.e., your children — or indulge yourself with luxury items. However, this money needs to last your entire retirement, which could span decades. Here’s a look at common financial blunders you don’t want to make as you get older if you want to avoid a major financial setback.
Collecting Social Security Benefits Too Soon
Many people make the mistake of taking Social Security income as soon as they can because it’s available. Others start early because they’re afraid the system will run out of money. Neither approach is the best way to maximize benefits.
“You receive more each month if you wait until your full retirement age, and you can even get increases after that — amounting to roughly 8% per year until you're 70,” said Justin Pritchard, CFP, founder of Approach Financial, Inc. in Montrose, Colorado.
Having patience can literally pay off.
“Instead of claiming as soon as possible, run some numbers to determine how much you'll earn if you wait,” he said. “Remember that a surviving spouse who takes over your benefit will be affected by your decision, so choose carefully.”
Cashing Out a Retirement Account
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/5-major-money-mistakes-avoid-160054463.html
What Not To Do While Trying To Get Out of Debt
.What Not To Do While Trying To Get Out of Debt
Know how to pay off debt so you don't make costly mistakes.
By Jaime Catmull April 30, 2021
If worrying about how to pay off debt keeps you awake some nights, late-night television abounds with alleged solutions. Some ads even promise to get rid of your debt for “pennies on the dollar.”
Fall victim to these “deals” and you might be left with worse financial troubles than before. But these aren’t the only foolish ways of paying off debt. Financial experts shared some common mistakes people make while trying to get out of debt — avoid making these same missteps.
1. Not Having a Reasonable Debt Repayment Strategy
What Not To Do While Trying To Get Out of Debt
Know how to pay off debt so you don't make costly mistakes.
By Jaime Catmull April 30, 2021
If worrying about how to pay off debt keeps you awake some nights, late-night television abounds with alleged solutions. Some ads even promise to get rid of your debt for “pennies on the dollar.”
Fall victim to these “deals” and you might be left with worse financial troubles than before. But these aren’t the only foolish ways of paying off debt. Financial experts shared some common mistakes people make while trying to get out of debt — avoid making these same missteps.
1. Not Having a Reasonable Debt Repayment Strategy
When sitting down to tackle your debt, the first step should be to see how much total debt you actually have. Add up any debt you have accrued from student loans, car loans, credit cards, medical debt, home equity loans, payday loans, personal loans and IRS and government debt. If you’ve been dealing with debt for a while, this might add up to a scary number that could leave you feeling overwhelmed, and you might feel like you don’t know how to even begin paying it back.
Why This May Be a Mistake
When you don’t have a clear debt repayment plan, your instinct might be to try to cut back on spending, save more and earn extra money until you’ve saved enough to pay back your debt all at once. However, if you are just making the minimum payments throughout this time, you’ll be accruing more interest all along.
Aim to consistently pay down your debt every month. Whether you want to tackle the highest-interest debt first or the smallest bill, know what your plan is and how you can achieve your goals.
Does It Ever Make Sense To Pay Down All Your Debt at Once?
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9 Easy Ways to Be Fiscally Responsible
.9 Easy Ways to Be Fiscally Responsible
Jacqueline Sanchez Wed, June 30, 2021
For some, it's surprising the amount of consumer and student loan debt a person has. This financial situation is a future you likely won't want for your children. So, "How do I prepare my children for the future and be fiscally responsible?" This simple question of "How?" can unlock the way you think about money. It often isn't enough to graduate college and work a stable career.
What Does It Mean to Be Fiscally Responsible? Fiscal responsibility describes a person who has self-control and accountability for their spending. Government institutions' fiscal responsibility is about how wisely those who hold an office spend tax-payer dollars and manage money in the federal reserve bank. Defining fiscally responsible for personal finances is about how wisely an individual spends their earned income.
Why Is It Important to Be Fiscally Responsible?
9 Easy Ways to Be Fiscally Responsible
Jacqueline Sanchez Wed, June 30, 2021
For some, it's surprising the amount of consumer and student loan debt a person has. This financial situation is a future you likely won't want for your children. So, "How do I prepare my children for the future and be fiscally responsible?" This simple question of "How?" can unlock the way you think about money. It often isn't enough to graduate college and work a stable career.
What Does It Mean to Be Fiscally Responsible? Fiscal responsibility describes a person who has self-control and accountability for their spending. Government institutions' fiscal responsibility is about how wisely those who hold an office spend tax-payer dollars and manage money in the federal reserve bank. Defining fiscally responsible for personal finances is about how wisely an individual spends their earned income.
Why Is It Important to Be Fiscally Responsible?
Even with a decent-paying job, it often isn't wise to spend money unconsciously. You might be left waiting for your next paycheck to cover unplanned expenses. This can put your family's finances at risk.
If you don't make changes, debt may never go away. That is why it's so essential to becoming fiscally responsible. You need to control your money and not let your money be in control of you.
How Do You Become Fiscally Responsible?
There isn't a magic number that indicates that you're fiscally responsible. Instead, the kind of behavior you have when it comes to spending can be a deciding factor.
Below are nine easy ways to become fiscally responsible. You can perform each method in any order. Most of them you can do simultaneously.
Know Your Net Worth
Net worth is an indication of someone's financial situation. It's not how much a person makes in a year. Instead, net worth is the dollar amount of one's assets minus their liabilities or debt.
For example, a person has $50,000 in stocks and $10,000 in consumer debt. Therefore, this person's net worth is $40,000 ($50,000 – $10,000 = $40,000).
On the other hand, a different person has $20,000 in a retirement account and $40,000 in student loan debt. This person's net worth is negative $20,000 ($20,000 – $40,000 = -$20,000).
Having a negative net worth is a reality check that tells a person they need to start making changes to their financial habits. There isn't an exact dollar amount that considers someone financially stable.
Instead, the key is which direction is one's net worth trending: Up or down?
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/9-easy-ways-fiscally-responsible-040100046.html
6 Reasons Why It’s So Hard To Get Out of Debt
.6 Reasons Why It’s So Hard To Get Out of Debt
Cynthia Measom Wed, June 30,
Getting out of debt isn't easy. It requires a lifestyle shift. Sometimes, you have to make a small change in the way you handle your finances -- and sometimes a big one.
If your New Year's resolution for 2021 was focused on getting out of debt, you may not have made much headway. This past year has been financially devastating for many families; and despite some assistance from the federal government, the Democrat-Republican congressional divide has slowed up stimulus for individuals and businesses alike.
To get some additional insight on why you haven't gotten out of debt by now, take a look at these reasons why it's so difficult. Plus, learn what you can do to start conquering your debt once and for all.
6 Reasons Why It’s So Hard To Get Out of Debt
Cynthia Measom Wed, June 30,
Getting out of debt isn't easy. It requires a lifestyle shift. Sometimes, you have to make a small change in the way you handle your finances -- and sometimes a big one.
If your New Year's resolution for 2021 was focused on getting out of debt, you may not have made much headway. This past year has been financially devastating for many families; and despite some assistance from the federal government, the Democrat-Republican congressional divide has slowed up stimulus for individuals and businesses alike.
To get some additional insight on why you haven't gotten out of debt by now, take a look at these reasons why it's so difficult. Plus, learn what you can do to start conquering your debt once and for all.
1. You Don't Have a Budget
Not having a budget is a sure way to keep yourself in debt. It's important to assign each dollar you earn to a specific category, including debt, and then account for every dollar you spend.
Many different budget plans exist, including the 50/30/20 rule. When using this budget, you put 50% of your income toward your necessities, such as rent, car payments, insurance, utilities and food. Next, 30% goes toward things you want, such as eating out, streaming services and new shoes. The remaining 20% goes into savings and paying off debt.
If you're determined to pay off your debt as soon as possible, you may want to play with the percentages a bit. For instance, consider putting 30% or 40% toward your savings and debt and leaving only 10% for things you want but don't need.
2. You Only Make Minimum Payments
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