A Personal finance blog for saving money and earning more and thus having a better life
With the economy roaring back to new levels of stability, the time to save money for the future is now. Interest rates continue to grow, which means your money could work harder for you now so you have a nice nest egg on which to rely in the future.
Before you decide to open a retirement, checking, or savings account, you might want to know which banks have the best interest rates right now. You can easily find this information by doing a quick search online.
Most of us wish we could stretch our money further than we actually do. Too often things come up that steer us away from the budget we planned. A few social obligations arise during the week and suddenly monthly entertainment expenses have doubled; which increases food costs due to eating out with friends.
Not to mention the additional costs of failing to prep meals for the week because you were out late.
Financial planning isn’t just about hiring a financial planner to set your financial goals and hit a target. This process happens every day; almost every decision from getting up in the morning and going to work or buying your morning coffee involves finances.
Life isn’t just about enjoying every moment, it’s about preparing for what’s ahead, and getting stronger in the process. This is exactly why financial planning exists.
Even though the US economy has improved in recent times and unemployment has now fallen to around 5% after a high of double figures in the midst of the recession there is still the prospect of your losing your job. You must be prepared because if you suddenly have no income coming in you are in real trouble. It can happen as companies downsize or streamline in the face of competition.
Some businesses simply find themselves unable to trade profitably. While unemployment statistics currently suggest that if you lose your job there will be other opportunities out there you should still be prepared in case there is an interruption in your monthly paycheck.
You get 9 months to prepare for an arriving baby. Well in true sense its 8 months. You’ll make the nursery, you’ll buy clothes, blankets, baby’s furniture, medicines ,toys and what not. But are you financially prepared to meet the demand of a child birth? In US, a child birth is costliest in the world.
If you are relatively young and in good health, thinking about someone one day inheriting your money might seem like a very distant future. Similarly, it almost might not seem like a useful effort, if you presently don’t have much money. For both situations, I’ll say this: wealth doesn’t just happen.
Is your partner just the opposite, money wise? Does your partner spends money at the slightest whim? Do you run a bigger bill at super markets with your partner, than when you are shopping alone? Most importantly, are you worried about your partner’s money habit?
One of the hard-fact in life is that, most of us are attracted to our opposites. If you are shy and a homebody, you are most likely attracted to someone that is outgoing, bubbly, and will pull you out of your shell a bit. If you have been a saver all of your life and have no idea how to even act in a restaurant (because you’ve never wanted to shell out the money to experience one), then you might find yourself attracted to a spender that shows you how much fun spending money can be.
Once I bought a lotto ticket for Florida Lottery, when jackpot went up astronomically. I don’t really recall the exact amount of the jackpot. But that’s it I never played lotto again. But, like every one else I sometimes day dream about getting a windfall of money. Some weird thoughts do cross mind sometimes, like a suitcase full of money coming down from the air crafts above or finding a sack full of currency notes. But realistically, we may receive a financial windfall at some point of time.
Most of us learn to live with a steady amount of money. It usually comes in the form of a paycheck from employer. We are accustomed to it. We can manage our income, budget it, plan for the future, and do everything you’d expect with this sort of arrangement. So how do we handle an unexpected windfall?
This is first post in the Financial Planning series, over the weeks we will help plan for finances across different age groups. I am starting with an age which sees maximum changes in your life. From college to job, from being single to be in a relationship, from dorm to your first home, and, from student loan to mortgage.
This is also the most challenging time for your finances. First getting a job for living. Then, you start paying off student loans, while using your credit cards and probably also looking for a new home. This is most challenging more so because you are almost inexperienced at managing your finances. Since personal finances are not taught at schools, most in their 20s simply don’t have a financial plan.