There is a lot of interest right now in reducing debt, and that’s a good thing. And there are several debt reduction approaches that have proven successful for many people. We can focus on paying the smallest debt, the largest debt, or the debt with the highest interest rate. Or we can use debt consolidation […]
Category Archives: Personal Finance
What is personal economic value and why is it important? Our personal economic value is our earnings potential or what can we expect to earn between now and when we plan to stop working. As an example, if I currently earn $44,000 each year, I’m 32 years old, and I plan to retire at age […]
We’re often surprised by our credit card statements, and not just because of how much we’re charging. The balance amount always seems to be a number that we wouldn’t have guessed, and some purchases that we expect to see aren’t on the statement, and some that we don’t expect to see are listed. This is […]
Most bank savings and money market accounts provide periodic compounding of interest, which is the interest being applied to the balance for a given period (usually monthly). What makes this such a great benefit, is that the interest applied in the current month, is applied to the balance that includes the interest from last month […]
Most experts agree that we need an emergency fund…a separate savings account that we set aside to cover monthly expenses in an emergency situation. If we experience a layoff or we’re unable to work for a period of time, the emergency fund is there to provide a financial cushion or safety net until our situation […]
Our saving plan should cover three essential areas: cash on hand for unexpected bills, money put aside to cover expenses in case our income is interrupted, and an account for later in life when we stop working or work in a reduced capacity. This approach protects our longer term savings from an unexpected withdrawal by providing for short-term […]
The basics of personal finance are a new focus for many people, and sadly for some out of necessity. Across our nation efforts to spend less, save more, and reduce debt are helping individuals to gain some control and stability. For many it’s a long hard road, but forming good financial habits will have life-long […]
Did you splurge a little too much for the Holidays? Did you set a limit this year, and if so, did you spend above it? In the coming weeks, the news will be filled with statistics about whether holiday spending was up or down this year and how retailers were affected. But for us, the […]
Many people are taking a much closer look at retirement planning and retirement saving, and with good reason. The questions surrounding Social Security and Medicare, low interest rates on savings, volatility in investments, and the departure of pensions from most jobs, has changed the landscape of retirement planning and retirement savings. Regardless of our age, […]
Our financial goals are often very general such as “be out of debt” or “get a better handle on our money”. If we don’t have a clear picture of where we are and where we’re headed, the chances that we’re making progress in the right direction are pretty slim. In fact, we could be slipping […]
