7 Mistakes People Make When Choosing a Financial Advisor

7 Mistakes People Make When Choosing a Financial Advisor

August 11, 2021

Choosing a financial advisor is a major life decision that can determine your financial trajectory for years to come.  A 2020 Northwestern Mutual study found that 71% of U.S. adults admit their financial planning needs improvement. However, only 29% of Americans work with a financial advisor.1

The value of working with a financial advisor varies by person and advisors are legally prohibited from promising returns, but research suggests people who work with a financial advisor feel more at ease about their finances and could end up with about 15% more money to spend in retirement.6

A recent Vanguard study found that, on average, a $500K investment would grow to over $3.4 million under the care of an advisor over 25 years, whereas the expected value from self-management would be $1.69 million, or 50% less. In other words, an advisor-managed portfolio would average 8% annualized growth over a 25-year period, compared to 5% from a self-managed portfolio.7

Being aware of these seven common blunders when choosing an advisor can help you find peace of mind, and avoid years of stress.

1. Hiring an Advisor Who Is Not a Fiduciary

By definition, a fiduciary is an individual who is ethically bound to act in another person’s best interest. This obligation eliminates conflict of interest concerns and makes an advisor’s advice more trustworthy.

All of the financial advisors on SmartAsset’s matching platform are registered fiduciaries. If your advisor is not a fiduciary and constantly pushes investment products on you, use this no-cost tool to find an advisor who has your best interest in mind.

2. Hiring the First Advisor You Meet

While it’s tempting to hire the advisor closest to home or the first advisor in the yellow pages, this decision requires more time. Take the time to interview at least a few advisors before picking the best match for you.

3. Choosing an Advisor with the Wrong Specialty

To continue reading, please go to the original article here:

https://article.smartasset.com/financial-advisor-mistakes-18/?utm_source=dianomi&utm_medium=cpc&utm_campaign=dia__falc_7mistakes_desktop&utm_content=7mistakesyoullmake_10

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   June 30, 2021

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

While creditors only require that cardholders make the minimum payment each month by the due date, doing so can keep you in debt for years.

By only paying the minimum each month, you could draw your payments out over a decade and end up paying more in interest charges than what you originally charged.

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/6-reasons-why-hard-debt-220050527.html

13 Tips That'll Truly Make All The Difference When Buying A Home

Homeowners Shared 13 Tips That'll Truly Make All The Difference When Buying A Home

"Bottom line: If you’re happy in your rented apartment, STAY in your rented apartment."

by Jasmin Suknanan

We recently published a post on reasons why people say they regretted buying their home. And let us tell you, people had *a lot* to say.

But we also noticed people sharing some useful home-buying tips that can actually prevent new homeowners from having some of those regrets. So we rounded up some of those tips below! Here are the best ones:

1. "Equity, equity, equity. Do your research, and know what is important to you. Get a good real estate agent who really wants what’s best for you, not just the quick sale for commissions."

"Don’t buy more than you can afford, even if the bank allows it."   —callumsmommy

2. "It is important to know the lifespan of key home features! Roofs, appliances, furnaces, water heaters, septic, and irrigation systems all have expected lifespans that can be shortened by a lot of factors. And they cost a lot to repair or replace."

"Often, you can get great rebates on upgrades from utility companies or government rebates if you go with eco-friendly options that cost more initially. I just put in a hybrid water heater that, with rebates, cost a couple hundred more than a standard model, but it cut my electric bill in half. Thankfully, I knew that it was an upcoming expense, so I had the money set aside and kept my eye out for deals on the model I wanted. Anytime you have to fix something out of desperation, you are in danger of getting gauged."   —mamasquatch4

3. "If you can't do a professional inspection, or you have any doubts, walk away."

"If your agent is pressuring you, get a different one. When it comes to older homes, assume you'll need to do work on them."   —sdk

4. "I recognize that this is a very privileged perspective, but what I've learned in my short time as a homeowner (a little under two years now) is if you can afford it, keep up with all the little things that need maintenance or upkeep."

"Don't put it off, or it will get worse and more expensive, and the things will pile up. There are a lot of costs that go into being a homeowner aside from just the purchase of the house and your mortgage."     —katieh46

5. "I have owned and lived in the same house for almost 19 years. I have found that there is always going to be something that needs to be fixed. YouTube is actually SUPER helpful with videos. Homeownership can feel challenging, but you are enhancing and protecting YOUR asset."   —iknowthatiknownothing

To continue reading, please go to the original article here:

https://www.buzzfeed.com/jasminsuknanan/home-buying-tips-that-make-a-difference

Think Like a Billionaire With These 19 Traits From Mark Cuban and the Super Rich

Think Like a Billionaire With These 19 Traits From Mark Cuban and the Super Rich

Discover the qualities that made the world's biggest success stories who they are today.

By Morgan Quinn June 2, 2017

To become a huge success, you might decide to blaze your own trail. But hacking through the jungle of life can leave you bruised and battered by the time you finally reach your destination.

Walking in the footsteps of those who succeeded before you makes for an easier journey all around. The world's most successful people — with some of the largest net-worth totals, as calculated by Forbes — credit some key traits for getting them to where they are today. Absorb their lessons, and maybe you'll become a billionaire.

1. Oprah Winfrey: Gratitude

The former queen of daytime television doesn't let her $2.9 billion net worth go to her head. Despite her abundant success, Winfrey remains grateful. In fact, Winfrey has kept a gratitude journal for many years.

"I know for sure that appreciating whatever shows up for you in life changes your personal vibration," she wrote in the November 2012 issue of O, The Oprah Magazine. "You radiate and generate more goodness for yourself when you're aware of all you have and not focusing on your have-nots."

2. Warren Buffett: Patience

Warren Buffett — the second-richest man in America behind Bill Gates — built his $73.6 billion net worth by simply taking his time. Not a fan of trendy stocks or knee-jerk reactions to market fluctuations, Buffett has a "set it and forget it" investing philosophy that requires patience and a determination to avoid falling for investing myths.

On the "Dan Patrick Show," Buffett said trying to get rich quick is one of the biggest money mistakes people can make. "It's pretty easy to get well-to-do slowly," he said. "But it's not easy to get rich quick."

3. Bill Gates: Humility

The richest man in the world is among the most charitable — and humble. Bill Gates and his wife, Melinda, have devoted their money and time to improving the lives of the world's poorest people. But despite his generous donations, Gates recognizes that others are making contributions that he says are more meaningful.

"I'm not giving up food, or vacation, or a trip to the movies" to give charitably, Gates said in a video interview for Reddit. "I essentially sacrifice nothing that I want, and there are people who are out in the field and they're giving more ... they're the biggest philanthropists."

4. Larry Ellison: Inquisitiveness

Larry Ellison, the billionaire founder of Oracle Corp., says his inquisitive nature is responsible for his success.

To continue reading, please go to the original article here:

https://www.gobankingrates.com/net-worth/business-people/habits-of-highly-successful-billionaires/

Inflation and Other Future Risks My Daughter Will Face

Inflation and Other Future Risks My Daughter Will Face

Notes From The Field By Simon Black  July 19, 2021  Cancun, Mexico

Robert Woodruff, President and CEO of Coca Cola, was in a terrible jam in 1953. Coke was already one of the most popular and successful products in the world. Everyone loved it.

Coca Cola had become such a staple in American life, in fact, that, in 1943, the US War Department requisitioned 6 million bottles of Coke per month to be delivered to American soldiers fighting overseas.

But World War II had taken a toll on the US economy, and inflation was rampant. By the early 1950s, Coca Cola’s production costs had soared… and the company could no longer justify selling a bottle of Coke for 5 cents.

Woodruff had always loved their 5 cent price. Part of the allure was that the company owned roughly half a million vending machines across the country. So US consumers could easily pay for a bottle of Coke with a single coin– a nickel.

Woodruff wanted to keep the simplicity of a single coin transaction. And since the next highest coin in the US is a dime– 10 cents– it would have meant doubling the price of Coke.

But Woodruff was terrified that consumers would balk at a 100% price increase.

So he sent an urgent letter to his old friend and hunting buddy, Dwight Eisenhower, who had just been elected US President.

In the letter, Woodruff asked if the Treasury Department would mint a 7.5 cent coin that consumers could use to buy Coca Cola.

Eisenhower’s Treasury Secretary rejected the idea. But Coca Cola still eventually raised its price.

Today you can easily spend $1.50 to $2.00 for a Coca Cola in a vending machine, a 30x to 40x increase over the past seven decades.

That’s an astonishing price increase. But it’s not just Coke.

Going back to the early 1940s– roughly eighty years ago– the median price of a new home in the United States was less than $3,000. Today the median home price is roughly $350,000… more than 100x higher.

If that rate continues, then by the time my daughter is 80 years old (she’s currently just a few weeks old), the median home price in the Land of the Free will be more than $30 million.

To us, today, it’s unfathomable that an average, middle class suburban home could cost $30 million. Or that a bottle of Coca Cola will cost $75.

Similarly, it was probably unimaginable to a typical US consumer back in the early 1940s that home prices would be hundreds of thousands, or even millions of dollars today.

But that’s the nature of inflation: it chips away at the value of money, slowly. But over longer periods of time, those small changes compound into incomprehensible price increases.

Now, the Federal Reserve in the United States has told people for years that they’ll set their policies to maintain an average 2% annual rate of inflation.

But 2% is a fantasy. According to the Federal Reserve’s own data, they’ve averaged 3.5% annual inflation since the end of World War II.

And that extra 1.5% makes an enormous difference over time.

If inflation averages 2% throughout my daughter’s life, prices will be roughly 6x higher by the time she’s in her 80s.

But if inflation averages 3.5% throughout her life, prices will be more than 20x higher. Just imagine paying $50 for eggs or bread… or $1 million for a Ford F-150.

Inflation, of course, only scratches the surface of the extraordinary trends that she’ll see unfold in her life.

I was born at a time when the United States was the wealthiest country in the history of the world– strong, prosperous, and free. And that had an enormous impact on my life.

My daughter, on the other hand, was born at a time when so-called ‘leaders’ find every way possible to destroy prosperity and make people less free.

For example, politicians across the US are raising taxes and creating absurd new regulations to obstruct business development.

The central bank is conjuring trillions of dollar out of thin air and stoking historically high inflation, while the Treasury Department racks up a national debt that’s so large it’s almost comical.

Yet the Treasury Secretary’s top priority now is diversity and inclusion… instead of maintaining a strong economy or a stable currency.

State and local governments are just itching to take people’s freedoms away again as the media continues spreading fear about new COVID variants.

And, while students in China focus on learning science, technology, mathematics, and engineering, US schools from kindergarten through university are radicalizing young people to become woke fanatics.

It pains me to imagine, 20 years from now as my daughter comes of age, how ill-equipped this younger generation will be to compete with China.

I expect my daughter to also witness Social Security running out of money by the time she’s a young adult. She may also quite possibly see the US default on its prodigious national debt…

And my fingers are crossed that she’ll never see a shooting war between the US and China– the culmination of the ‘Thucydides trap’ where a rising power and declining power go to war.

All the while, as things decline in the West, she’ll probably see politicians continuing to blame the same old boogeymen for all the problems.

As US economic conditions deteriorate, future US President AOC will keep insisting that capitalism and systemic racism are at the core of the problems… and the solution is to double down on their bankrupt progressive spending programs.

It reminds of how Venezuela’s government always blames its economic problems on the United States; they never look within and realize that they have caused their own destruction.

All that said, I’m wildly optimistic about my daughter’s future.

I’m an avid student of history, and I know that this is nothing new. Superpowers rise and fall. Dominant currencies rise and fall.

But throughout it all, talented, independent-minded people always find opportunities to rise. And my primary role as her father is to make sure that she’s in that category.

On another note… We think gold could DOUBLE and silver could increase by up to 5 TIMES in the next few years.

That's why we published a new, 50-page long Ultimate Guide on Gold & Silver that you can download here.

To your freedom and Prosperity,  Simon Black, Founder, SovereignMan.com

https://www.sovereignman.com/trends/inflation-president-aoc-and-other-future-risks-my-daughter-will-face-33097/

Why Warren Buffett May Be Wrong About America’s Future

Why Warren Buffett May Be Wrong About America’s Future

Notes From The Field By Simon Black

 July 21, 2021  Cancun, Mexico

Nearly every year in his annual Berkshire Hathaway shareholder letters, Warren Buffett spends a few pages talking about the dynamism of the American economy.  His message is clear: the United States has faced adversity before. It will again. But America always prevails and you should never bet against it.  That theme has certainly held true during Buffett’s life. He was born in 1930 and came of age at a time when the US had become the world’s undisputed dominant superpower.

Buffett’s entire business career, in fact, took place at a time when America was on the rise.  But even Buffett would have to acknowledge that times have changed.

Today the government is obsessed with passing regulations that create obstacles to growth and new business formation. They’d rather pay people to stay home and NOT work rather than encourage production and innovation.

They rack up enormous quantities of debt without a single thought to the long-term consequences. They engineer inflation. They stifle competition.

And they constantly ridicule anyone who took a chance, worked hard, and became successful. Not only do they want to raise your taxes, they want to shame you because of your hard work and success.

Buffett knows this now from personal experience. Last month, in an effort to make wealthy people look bad, Buffett’s private personal tax returns were illegally leaked on the Internet for everyone to see.

He never had to deal with that sort of rage before in his life.

Moreover, when Buffett was a young man, he never had to contend with fanatical mob of woke Marxists. And he never knew a time when the biggest companies in America bent the knee in subservience to them.

And while there have always been small groups of Communist sympathizers and socialists in America, Buffett made his fortune at a time when the vast majority of people understood the awesome, prosperity-generating powers of a capitalist system.

But today, socialism is totally mainstream, with New York Magazine last month proclaiming that “Socialism isn’t a dirty word anymore.” And according to a recent Axios poll, most Gen Z (ages 18-24) have a negative view of capitalism.

Bottom line, the America of today is not the same America where Buffett made his fortune.

This isn’t to say that there aren’t extraordinary opportunities to create wealth and become successful. Of course there are-- opportunities abound everywhere, both within the US, and around the world.

But it would be foolish to ignore these trends, or the fact that the country may be past its economic and political peak.

To paraphrase former Treasury Secretary Larry Summers, how much longer can the worlds biggest debtor continue being the world’s biggest superpower?

How much longer can a country which debases its currency, embraces socialism, silences intellectual dissent, brainwashes its youth, and encourages unproductive behavior, continue being the world’s most dynamic economy?

These are not controversial statements. They’re relevant, important questions that any independent-minded person might consider.

This is the topic of today’s podcast, which you can watch here (on YouTube) or here (on SovereignMan.tv), or listen to here.

To your freedom, and Prosperity

https://www.sovereignman.com/podcast/why-warren-buffett-may-be-wrong-about-americas-future-33110/

Signature  Simon Black,Founder,  SovereignMan.com

Americans Say $516K Needed to Achieve Financial Wellness

Americans Say $516K Needed to Achieve Financial Wellness

Patrick Villanova  Fri, August 6, 2021

A recent survey found that Americans on average think it takes $516,000 in savings to achieve financial wellness.

The key to financial wellness may be a cool half mil. Though the factors determining financial stability may be different to each investor and retirement saver, a recent Empower Retirement and Personal Capital survey found that most Americans believe it takes having more than $500,000 in savings to become financially healthy. The survey, conducted by The Harris Poll, interviewed 2,005 people across different age groups, racial and ethnic backgrounds, life stages and employment sectors to get their views on financial wellness.

$516K: The Magic Number For Financial Wellness?

The poll found that Americans’ views on financial wellness evolve as they progress through different phases of life or experience significant “perspective-changing events.” However, Americans feel the average amount of money it takes to achieve financial well-being is $516,433, according to the survey.

The survey found that Americans don’t feel financially healthy themselves until age 47. What’s more, they said age 49 is when they think other people feel financially healthy.

“While many Americans believe financial well-being is attainable, less than half say they’re financially healthy today,” the survey states.

From Broke College Grad to a Half-Million by Age 47

A recent study found that Americans on average think it takes saving over $500,000 to attain financial wellness.

So how does someone actually save $500,000 after starting with next to nothing? Consider a 22-year-old college graduate named Nicole. Despite graduating with minimal debt, she starts out with just $100 to invest. Using SmartAsset’s investment calculator, she could determine exactly how much she’ll need to invest each year to reach her goal of saving over $500,000 by age 47.

Assuming an 8% annual rate of return, Nicole will need to invest $7,050 a year to have over $516,000 within 25 years. That means each month she’ll have to put aside $587 to invest. Nicole’s ability to save at that rate, of course, depends on a number of factors, including her income, her expenses, her budgeting and the cost of living in her area.

Saving $500K Despite Starting Later

To continue reading, please go to the original article here:

https://www.yahoo.com/finance/news/americans-516k-needed-achieve-financial-195338904.html

Why Do Some People Blow The Family Fortune? 5 Tips To Build Wealth For Generations

Why Do Some People Blow The Family Fortune? 5 Tips To Build Wealth For Generations

Benzinga Contributor  Wed, August 4, 2021

As more baby boomers (those born from 1946 to 1964) move deeper into retirement, a massive transfer of wealth to younger generations is approaching. One report mentions that over the next 25 years, U.S. households will pass nearly $70 trillion to their children.

But there is no guarantee that a family’s wealth will last for generations. Building and maintaining wealth, so it benefits many generations, requires proper financial education, perspective among family members, and communication, says Chance Robinson, a financial advisor and author of Financial Myths: Important Information You May Not Know About Your Retirement And Financial Future.

“There is much to learn from the reckless wealthy,” Robinson says. “There have been numerous instances where inheritors have squandered wealth. Unfortunately, they could not build upon what was available to them.

“Preserving intergenerational wealth is an uphill task. But understanding the differences between a wealth-generation mindset and a wealth-destroying one can teach lessons that are vital to continuing and increasing intergenerational wealth in your own family.”

Robinson has these tips for families to consider about building and maintaining intergenerational wealth:

View Wealth As More Than Money And Property

To Robinson, the first things that come to mind when discussing wealth are bank balances and properties. Still, he adds that a family’s collective wealth goes deeper to include family memories, relationships, and ethos – its aspirations for the greater good. “These intangible but important emotional factors play an important role in keeping the family and its generations on the same page and keeping the financial assets intact,” he says.

Take An Unselfish, Long-Term View

“There is no place for a self-centered attitude,” Robinson notes. “The person intending to generate wealth and leave a legacy behind would likely possess an open and generous mind. He or she would not necessarily look for ways to consume everything in his or her lifetime.

To continue reading, please go to the original article here:

https://www.yahoo.com/finance/news/why-people-blow-family-fortune-185703474.html

Steve Harvey Says Every Married Couple Should Have 4 Bank Accounts

Steve Harvey Says Every Married Couple Should Have 4 Bank Accounts

Evan Romano   Wed, August 4, 2021,

Steve Harvey shared some financial advice in a short video called "Couples Economy," originally posted to YouTube but now shared from his Twitter account.

In the video, Harvey breaks down why every married couple should have not one, not two, not three, but "a minimum" of four bank accounts.  He shared his reasoning, calling it "the best advice I ever got."

On the set of Family Feud, for his motivational speaking video series "Motivated," Steve Harvey shared a bit of financial insight that he calls "the best advice I ever got." And given that the stand-up comedian, actor, and mogul has a reported net worth of around $200 million, there are probably worse people to take these sorts of tips from. The advice? That every married couple should have a minimum of four different bank accounts.

It's something that's probably crossed people's minds before: how can a couple, conceivably together for the long haul, share and manage their funds? Harvey offers his reasoned take in the short video. "If one person works in the house, or if two people work in the house, it doesn't matter," he says in the video, presumably assuring people that this is universal advice. "You need four bank accounts."

So for anyone curious, here's a breakdown of why Harvey believes there are four bank accounts—each with its own dedicated purpose—that every married couple needs to have.

1) Account for all necessary items

The first account that Harvey says a married couple needs is one account with shared money. This takes care of things that need to be paid, like car notes, mortgage, electric bill gas bill, food, etc. "Everything that maintains your lifestyle," he says.

2) Savings account

To continue reading, please go to the original article here:

https://www.yahoo.com/lifestyle/steve-harvey-says-every-married-152000762.html

You can watch the full video of Harvey's financial advice below:

https://twitter.com/i/status/1422860109906989059

The Best Money Moves for August 2021

The Best Money Moves for August 2021

Kenadi Silcox   Mon, August 2, 2021

It feels like the summer just began, and yet it’s already starting to come to a close as August leads us into another back-to-school season.

The price of new backpacks, notebooks and sneakers — not to mention extracurriculars — can put a strain on many families’ budgets. And as we head back to “reality” after post-pandemic vacations and perhaps less-than-frugal spending, you’re certainly not alone if you’ve started wincing with every swipe of your credit card.

But there are tax savings to be had and another child tax credit payment on the horizon to help ease parents’ burden. We’ll walk you through both, along with other important money moves for this month. Here’s what you need to know in August:

1. Plan back-to-school shopping around tax-free holidays

The price of back-to-school supplies is expected to be at an all-time high this year, so there’s no better time to take care of one of the most costly annual to-dos than during your state’s tax-free shopping holiday.

Every year around this time, select states offer “tax holidays” that allow shoppers to buy school supplies without having to pay any sales tax. This year, 15 states have some sort of back-to-school related tax holiday during the month of August.   https://money.com/sales-tax-holiday-back-to-school-2/

Depending on where you live, you can save between 4% and 7% without having to pay state sales tax. The savings will be more in places that include local sales taxes in the shopping holiday.

The National Retail Federation estimates families will spend an average $849 on back-to-school shopping this year. But what counts as school supplies can vary by state, and some states may offer the tax break on items other than traditional school supplies like notebooks and calculators.

Shoppers in states like New Mexico or Missouri can make tax-free purchases on clothes, shoes, and computers as well. Be sure to check the specific dates, price limit and products available for the discount in your own state to avoid any surprises at the checkout counter.   https://www.taxadmin.org/2021-sales-tax-holiday

2. Unenroll from future child tax credit payments

The second of six monthly child tax credit payments will deposit into parents’ bank accounts on Aug. 13, injecting up to $300 per child into millions of peoples’ budgets. Most parents shouldn’t need to take any action, but if you want to opt out of monthly payments or update your information, take note of these dates:

To continue reading, please go to the original article here:

https://money.yahoo.com/best-money-moves-august-2021-182410148.html

31 People Share The Best Money Advice They've Ever Gotten

31 People Share The Best Money Advice They've Ever Gotten

Simple ways to save and smart ways to spend.

by Sally Tamarkinn   BuzzFeed News Reporter

Everyone needs money, but everyone has different strategies for saving it and spending it.  So we asked members of the BuzzFeed Community to share with us the best advice about money they'd ever gotten.

Here's what they shared:

1. Keep your three biggest expenses as low as you can.

"Your three biggest expenses are (usually in this order): housing, transport, and food. Keep those as low as you happily can, and that will make the most significant difference to your spending. I do this by sharing housing, cooking at home, and not having a car. You can lower other expenses and that definitely helps, too (i.e. get store brand, a cheaper mobile phone contract, clothes, etc.) but housing, transport, and food are where lowering costs will make the biggest difference."   —maxw46042041e

2. If you want to pay off multiple debts fast, try the Snowball method.

"Basically, you commit to paying an extra amount ($100 in this example) every month until all your debt is paid off. Also, once an account is closed, you add that minimum payment to the power payment.

You start by making a power payment (to the principle only) to the account with lowest balance debt, each month, until it's paid off. Once it is, you take the $100 and the monthly payment for the balance that's now closed and apply that to the next lowest balance debt until it's paid off. Rinse and repeat.

Eventually your power payments are huge and those larger balance debts don't seem so scary. It also doesn't impact your monthly budget too much. I paid off all my debt (student loans, credit cards, and car loans) by the time I was 28 using this method. I heard about it when I was 25."  —ja14torres

3. Round up on each bill and pay that amount.

"My dad always told me to round up your bills and pay a little extra, as it makes your next month's bill lower, leaves a good impression, and you won't miss the extra $5-$10."—elyse1509

4. Figure out what your monthly bills are going to be and then put that amount in savings throughout the month.

"I calculate what my bills are going to be for the month (car payment, rent, utility bills) then put half of that from each paycheck (I get paid bi-weekly) into savings so I know how much extra I have to work with. I also usually try to round up my bills and then I won't touch that extra money I put into my savings. For example, if my rent is $375 a month, I'll take out $200 a paycheck and keep the extra $25 I didn't use on rent as extra savings."

—elyse1509

5. Use direct deposit to put money directly into an account that's just for bills.

"Where I work you can have your paycheck split into however many different bank accounts and however you'd like. So you can have a bank account solely for bills that never change, like house or car payments. If you automatically have your bill money put into one account then you know that whatever is deposited into your other account is 'leftover' money."  —ashlyns4aa602521

6. Every time you make a dollar, save a dime.

To continue reading, please go to the original article here:

https://www.buzzfeed.com/sallytamarkin/ways-to-stress-less-about-money