The most popular approaches to debt elimination are: paying off the largest debt first, paying off the smallest debt first, paying off the debt with the highest interest rate first, and loan consolidation. In my book “Personal Finance Simply Understood” I walk through a detailed analysis of these approaches using various loan and debt amounts, and […]
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People buy a lot of things that they don’t need, and in some cases don’t even want, and they often buy them with credit. It’s interesting that people who use cash spend less on average than people using debit or credit cards. Apparently we’re less likely to buy when we see the money that we’re […]
If you’re employer has a 401(k) plan and you’re not contributing, it’s time to take a serious look at the financial benefits these plans offer. Company sponsored 401(k) plans allow us to deposit a limited amount of pretax income (taken from our gross pay before taxes are withheld) to an account that grows tax-deferred. This […]
With interest rates staying at all time lows, we may be tempted to look at saving as a no-win situation. Monies deposited just aren’t accumulating any interest and with an annual inflation rate around 2%, aren’t we actually losing money on our savings? The short answer is yes, but a more prudent answer lies with the […]
Buying a home is a major event in our lives, and the excitement can easily overshadow the long-term financial commitment we’re about to make. This is especially true when we’ve found a home that we love. The property taxes, maintenance, and mortgage obligation that we’re committing to, often take a backseat to the excitement of […]
The short answer is maybe, since it depends on how you answer a few simple questions. Are there family members who will need to be cared for financially when you die? Will your survivors or beneficiaries inherit debt such as a mortgage or a personal or car loan? Do you already have a large policy […]
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 […]
ONE: It’s easier to find a job when you have a job. Statistics prove this out, and I think it has a lot to do with our attitude more than anything else. When we’re on an interview and we already have a job, we’re more confident. We don’t really need the position. We’re interested in […]
Survivorship planning is an often overlooked area of personal finance. when it is considered, it’s usually limited to large obligations like a mortgage. But there are many smaller items that could add up to a large financial burden for our survivor. We should start by analyzing the ability of our dependents to continue financially without us […]
With interest rates staying at all time lows, we may be tempted to look at saving as a no-win situation. Monies deposited just aren’t accumulating any interest and with an annual inflation rate around 2%, aren’t we actually losing money on our savings? The short answer is yes, but a more prudent answer lies with the […]
