money lessons http://www.wisebread.com/taxonomy/term/12371/all en-US 8 Personal Finance Lessons Women Learn in Their 20s http://www.wisebread.com/8-personal-finance-lessons-women-learn-in-their-20s <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-personal-finance-lessons-women-learn-in-their-20s" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_summer_000023077770.jpg" alt="Woman in her 20s learning personal finance lessons" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Being in your 20s is amazing. It's filled with change; most women enter the decade as college students without any idea of what to do with their lives, only to end their 20s much more settled &mdash; oftentimes married, sometimes with kids, and frequently well into a career. Here are the eight financial lessons women in their 20s learn.</p> <h2>1. Love Has an Enormous Impact on Your Money</h2> <p>I entered my 20s dating the person I thought I would marry. I first moved across the country for them, and eventually to the other side of the world to Russia for that person. But by time I was 21, I was dating someone new. This time, it <em>was</em> the person I did marry. But going into a relationship you never really know where it is headed, and you don't know the impact it will have on your wallet. The reality is that love will impact your financial situation tremendously. It's not just about who pays for dates, but whether you share the same financial values, what type of job the other person has, whether you move or switch careers for that person. So choose your significant other wisely.</p> <h2>2. Take Big Risks With Your Job</h2> <p>Your 20s are the best time to grow in your career. In fact, a brand new study has revealed that most of your <a href="http://www.washingtonpost.com/blogs/wonkblog/wp/2015/02/10/your-lifetime-earnings-are-probably-determined-in-your-twenties/">earning potential</a> is determined in your 20s. So, it's best to find work that is meaningful and enjoyable, but that will also earn you a decent living. Now is the time to move across the country, try something totally new, go to law school or get an MBA, or quit a stable corporate job to start a business or work for a start up. What you do with your career this decade, will impact your finances for the rest of your life.</p> <h2>3. Plan for the Future: Settling Down Happens Quickly</h2> <p>Ask any 30-year-old woman what has happened to her Facebook feed in the last two years. She'll tell you it has gone from friends posting wedding and travel photos to a feed filled with her friends' baby photos. You start your first job at 22 thinking your 30-year-old coworkers are so old because they don't go out to happy hours and instead head home to be with their familes. Before you know it, you are 30, and you're the one going home to your kids and spouse, instead of out for drinks. So, use your 20s to save for this settling down that will likely happen by the time you're 30. Start saving for your wedding, for your house, and for your future children.</p> <h2>4. Spend Enough to Enjoy the Present</h2> <p>While you should save in your 20s, don't save so much for the future that you fail to enjoy the present. If you want to quit your job to travel the world, do it. It's going to be 1000 times harder to do when you're 34 than when you're 24. Plus, society is far less accepting of a 30 or 40-something year-old woman who quits her job to travel (unless you've experienced a traumatic divorce and are soul searching, a la Eat Pray Love). So spend on the big things, but also on the small. Go out for drinks with friends, to concerts, and sporting events, because you'll never be more able to than you are when you're an unsettled twenty-something.</p> <h2>5. Find a Job With Good Maternity Leave</h2> <p>Setting down happens quickly, and often when you're not even looking. You likely won't be thinking about your job's maternity leave when you say &quot;yes&quot; to your first or second or third job offer of your 20s. But you should. Chances are that you'll stay at that place of employment longer than you plan, and you'll want to be covered if you become pregnant. Choose a company with a&nbsp;<a href="http://www.wisebread.com/the-29-companies-with-the-best-maternity-benefits">good maternity leave policy</a>.</p> <h2>6. Women Still Earn Less Than Men</h2> <p>My mom likes to tell me about how when she was my age, women lawyers could wear nothing but skirt suits and pantyhose. Pant suits were simply unacceptable. At a dinner interview where spouses were invited, people assumed it was my dad interviewing, not my mom. Granted, things have changed for women since 1984; but not as much as we'd like. Women only account for 20% of corporate board seats, 20% of US Senate and House seats, and about 33% of doctors and lawyers. And women still earn about 78 cents for every dollar a man earns.</p> <h2>7. It's Good to Live Somewhere Cheap and to Live Frugally</h2> <p>Every woman in her 20s should live somewhere that is far less expensive than she can afford, and spend far less money than she reasonably could. Why? Because someday later on, when you are worried about the job market or what would happen if you got a divorce, you'll have confidence that you can get by on a lot less. It's much easier to gain this confidence at 25 than 45.</p> <h2>8. No Matter How Much You Learn About Personal Finance in Your 20s, You Don't Know It All</h2> <p>Most women learn an enormous amount about money in their 20s. We earn our first paychecks, start our 401(k)s, pay medical bills, taxes, mortgages, and more. There is a lot to learn and we mostly learn it out of necessity. But, by the time you reach your 30s, you realize that <a href="http://www.wisebread.com/7-personal-finance-lessons-women-learn-in-their-30s">there is still more to learn</a>. Thankfully, by this point, even if your finances are in rough shape, you have confidence that you can learn more and have the resources for doing so.</p> <p><em>What financial lessons have you or did you learn in your 20s?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/elizabeth-lang">Elizabeth Lang</a> of <a href="http://www.wisebread.com/8-personal-finance-lessons-women-learn-in-their-20s">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-by-kindergarten">5 Financial Lessons Everyone Should Learn by Kindergarten</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-you-know-these-5-financial-lessons-most-people-learn-in-their-40s">Do You Know These 5 Financial Lessons Most People Learn in Their 40s?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/12-ways-kids-can-teach-us-about-money">12 Ways Kids Can Teach Us About Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/money-mistakes-two-popular-board-games-teach-kids">Money Mistakes Two Popular Board Games Teach Kids</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-personal-finance-lessons-from-the-hobbit">5 Personal Finance Lessons From “The Hobbit”</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance age and money financial education money lessons women and money Mon, 02 Mar 2015 14:00:08 +0000 Elizabeth Lang 1314827 at http://www.wisebread.com 5 Financial Lessons Everyone Should Learn by Kindergarten http://www.wisebread.com/5-financial-lessons-everyone-should-learn-by-kindergarten <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-financial-lessons-everyone-should-learn-by-kindergarten" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/child-business-suit-money-finance-Dollarphotoclub_63769669.jpg" alt="child finance" title="child finance" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>We each grasp financial lessons at different points in our lives, but we're never too old &mdash; or too young &mdash; to start learning. Some lessons, however, are so basic that understanding them is nearly a prerequisite to financial survival. Whether you need a refresher yourself, or are responsible for shaping a young person's relationship with money, here are five financial lessons everyone should learn by kindergarten.</p> <h2>1. Money Represents Labor</h2> <p>At its most basic level, money is just labor in physical form. Whether you worked for it using your mind or your muscle, the green stuff is the result of some form of effort. And without making your six-year old mop the floor for a bowl of mac 'n cheese, there are ways to gently and positively make the connections between effort and financial reward.</p> <p>Of course, the secondary value of this lesson is how it can alter spending behavior. The &quot;aha moment&quot; you want to encourage goes something like this: &quot;If money is labor, then the <em>things</em> I buy with my money also represent my labor.&quot; Fully grasping that concept is the root of healthier spending behavior for life (and if you're like me, you know a shocking number of adults who still don't quite get it).</p> <h2>2. Spending Is Not the Same as Investing</h2> <p>Though each may drain our wallets and bank accounts for a period of time, <em>spending</em> and <em>investing</em> are entirely different animals.</p> <p>Dropping $3500 for a leather couch is <em>spending</em>, but using that same amount to buy a good used car that will get you back and forth to work is <em>investing</em>. Think of it this way. If the item or service you're buying will provide some sort of tangible dividend (such as the ability to stay employed, advance in a career, sell at a profit later, etc.) , it's an investment. If it doesn't meet that simple criterion, it's just plain old spending. If you haven't already, <a href="http://www.wisebread.com/5-investing-basics-that-can-make-you-rich">learn the basics of investing</a> and put its power to work for you sooner than later.</p> <h2>3. Consumer Credit Is Dangerous</h2> <p>It may not seem this way, but every time we use a credit card, we're taking out a loan. Granted, it might be a mere $3.89 for a hamburger, but it's a loan. And let's face it, the last thing credit card issuers want their customers to do is pay off their balances every billing cycle (credit card companies have an endearing term for those who do &mdash; &quot;deadbeats&quot;). They'd much rather have all those hamburgers, shoes, smartphones, and haircuts add up at a 17% percent interest rate.</p> <p>Teach your kids the <a href="http://www.wisebread.com/the-dirty-secrets-of-credit-cards">dirty secrets of credit cards</a>. Tell them about the evil geniuses that lurk behind the magnetic strip. You know, the ones who conceived the evil formula of convenience + frequent use + low minimum payments = long-term debt and high returns. Create a bedtime story about an overspending prince who became a pauper because of plastic. It's a cautionary tale for the ages.</p> <h2>4. Understanding the Difference Between Wants and Needs</h2> <p>When I was a kid, I desperately wanted a green plastic toybox shaped like a large frog. I don't remember the brand name, but I do remember wanting to own one so badly that every fiber of my 40-pound body nearly vibrated with green-plastic-frog-toybox desire. I never got it. Kids want things with such wild enthusiasm that it's difficult for them to distinguish what they want from what they need. Had I been asked way back when, I'm sure I could have made a case why that frog toybox was essential to my survival &mdash; because it certainly felt that way.</p> <p>But at any age, being able to clearly <a href="http://www.wisebread.com/what-you-need-vs-what-you-want-and-how-to-tell-the-difference">distinguish wants from needs</a> is an essential skill. Why? Because we live in an economy that's made a science of confusing the two. Indulgence and denial aside, it's the identification that matters and it's the first step of being able to live within our means.</p> <h2>5. Money Can't Buy Happiness, But It Can Buy Choices</h2> <p>The value of money rests not in its ability to make us happy, but to buy us options in life. Authentic, well-financed choice is a rare bird these days. Many of us feel like we have choices, because we're presented with so many options as consumers every waking minute. But to me, most of these sorts of choices feel low-value &mdash; &quot;trinket choices&quot; manufactured purely to encourage spending. Only the most financially disciplined can afford to exercise a potentially life-altering choice like switching careers, moving across the country, starting a business, or retiring early. This level of choice gives us the power to reinvent ourselves at any stage of life.</p> <p>Granted, these are only five lessons in a long list of financial fundamentals. But together, they form a great foundation for building security and wealth. If you're still learning, let your curiosity motivate you. And if you're helping a young person learn, be patient and avoid instilling a sense of fear about money. Remember, real power comes from understanding that money is not mysterious, wealth is not always the result of dumb luck, and financial security is within our control.</p> <p><em>What financial lessons did you learn early in life? Who taught you and how? Which ones are you still learning?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/kentin-waits">Kentin Waits</a> of <a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-by-kindergarten">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-you-know-these-5-financial-lessons-most-people-learn-in-their-40s">Do You Know These 5 Financial Lessons Most People Learn in Their 40s?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/12-ways-kids-can-teach-us-about-money">12 Ways Kids Can Teach Us About Money</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/money-mistakes-two-popular-board-games-teach-kids">Money Mistakes Two Popular Board Games Teach Kids</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-personal-finance-lessons-from-the-hobbit">5 Personal Finance Lessons From “The Hobbit”</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-personal-finance-lessons-women-learn-in-their-20s">8 Personal Finance Lessons Women Learn in Their 20s</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance financial education kids and money money lessons money school Fri, 27 Feb 2015 12:00:05 +0000 Kentin Waits 1308948 at http://www.wisebread.com 21 Things That Young Adults Absolutely Need to Know About Money http://www.wisebread.com/21-things-that-young-adults-absolutely-need-to-know-about-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/21-things-that-young-adults-absolutely-need-to-know-about-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/college-students-friends-homework-Dollarphotoclub_13077578.jpg" alt="college students homework" title="college students homework" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>I teach a three credit course called&nbsp;<a href="http://rci.rutgers.edu/~boneill/"><em>Personal Finance</em></a> at Rutgers University. Unfortunately only a small fraction of students at Rutgers and other universities receive any formal education in money management. Below are &quot;cliffs notes&quot; for those who leave school without learning about personal finance.</p> <h2>Budgeting</h2> <h3>1. Create a Spending Plan (Budget)</h3> <p>Track your monthly income and expenses and &quot;tweak&quot; the numbers until cash flow is positive (income greater than expenses). Use this <a href="http://www.bankrate.com/calculators/smart-spending/college-student-budget-calculator.aspx">Student Budget Calculator</a> from Bankrate to get started.</p> <h3>2. Learn to Use a Checking Account</h3> <p>Compare bank and credit union accounts for students. Reconcile your checkbook register with print or online statements and avoid fees for low balances and out-of-network ATMs.</p> <h3>3. Pay Bills on Time</h3> <p>Use a calendar and/or e-mail or text message alerts to keep on top of bills for car insurance, utilities, credit card balances, etc. Better still, pay bills promptly when they first arrive.</p> <h2>Credit and Debt</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5123/friends-credit-card-Dollarphotoclub_61993665.jpg" width="605" height="340" alt="" /></p> <h3>4. Don't Borrow What You Can't Repay</h3> <p>Outstanding debt ties up future income, costs money (interest and/or fees), and can cause physical symptoms of stress (anxiety, insomnia, etc.).</p> <h3>5. Double the Minimum</h3> <p>Ideally, plan to pay credit card bills in full. If you can't, pay at least <em>double the minimum amount due</em> to save on interest and cut the repayment time. For example, doubling the minimum payment on a $1,000 balance on an 18% APR credit card will save $399 in interest and four years of payments.</p> <h3>6. Compare Student Loan Debt to Future Earnings</h3> <p>Financial aid counselors recommend not borrowing any more than the expected first year salary for the career that you expect to have after graduation.</p> <h3>7. Know Your Score</h3> <p>Credit scores are based on data found in credit reports. Credit reports are like a &quot;report card&quot; with detailed information about credit use while credit scores are like a &quot;GPA&quot; with a single number between 300 and 850 that tells how you are doing. For a free credit report, see <a href="http://www.annualcreditreport.com/">AnnualCreditReport.com</a>.</p> <h2>Saving and Investing</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5123/woman-college-student-piggy-bank-Dollarphotoclub_68788613.jpg" width="605" height="340" alt="" /></p> <h3>8. Be Future-Minded</h3> <p>Set financial goals with both a dollar amount and time deadline. Then calculate the required savings. For example, to have $1,000 for spring break in 40 weeks requires $25 of weekly savings. Use this&nbsp;<a href="http://njaes.rutgers.edu/money/pdfs/goalsettingworksheet.pdf">financial goal worksheet</a>&nbsp;to &quot;do the math.&quot;</p> <h3>9. Pay Yourself First</h3> <p>From every dollar you earn, save at least a dime (10%). Automate your savings through direct deposit, payroll deduction (e.g., 401(k) plan), and automatic transfers from a checking to a savings account.</p> <h3>10. Save Early and Often</h3> <p>Take advantage of the awesome power of compound interest. For every decade that you wait to start saving for a financial goal, the amount you need to save approximately triples. For more information about saving, visit <a href="http://www.americasaves.org/">America Saves</a>.</p> <h3>11. Understand the Rule of 72</h3> <p>Divide the expected return on an investment into 72 (e.g., 72 &divide; 8%). The result (e.g., 9) is the number of years that it will take to double a sum of money. To build wealth, you'll need to take some risk and invest in stocks or stock mutual funds. At a 1% rate of return, money will double in 72 years.</p> <h3>12. Learn About Investment Risks</h3> <p>All investments have some type of risk including risk of loss of principal (e.g., stocks) and risk of loss of purchasing power due to inflation (e.g., money market funds). Learn more about investing from the Cooperative Extension basic investing home study course <a href="http://www.extension.org/pages/10984/investing-for-your-future#.VM6TIE2_yM9"><em>Investing for Your Future</em></a>.</p> <h2>Insurance</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5123/man-injured-foot-accident-Dollarphotoclub_56805562.jpg" width="605" height="340" alt="" /></p> <h3>13. Insure Against Large Financial Losses</h3> <p>&quot;Big ticket&quot; risks include medical expenses, loss or destruction of property, disability caused by an accident or illness, and liability for damages to others or to their property.</p> <h3>14. Buy Health Insurance</h3> <p>It's not just a smart financial move, it is required by law. Young adults can stay on their parents' plan until age 26 or they can purchase insurance through an employer or their state's health insurance marketplace. For more information, visit <a href="http://obamacarefacts.com/obamacare-young-adults/">Obamacare Facts</a>.</p> <h2>Spending</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5123/man-college-student-bookstore-Dollarphotoclub_48628456.jpg" width="605" height="340" alt="" /></p> <h3>15. Determine Needs and Wants</h3> <p>Needs (e.g., food, housing, utilities, and transportation to a job or school) are necessary expenses. Wants are everything else. Set money aside for needs before spending it on wants.</p> <h3>16. Follow the Rule of Three</h3> <p>Compare the features, including price and consumer feedback ratings, of at least three vendors for &quot;big ticket&quot; products and services. To organize the information that you find, try using this <a href="http://www.slideshare.net/BarbaraONeill/rule-of-three-worksheet-for-comparison-shopping">comparison shopping worksheet</a>.</p> <h3>17. Step Down to Save</h3> <p>&quot;Stepping down&quot; means getting things that you need or want at a lower price point. For example, buying clothing in good condition at a thrift or consignment shop instead of at a department store.</p> <h2>Other</h2> <h3>18. Guard Your Identity</h3> <p>Place documents with sensitive data (e.g., bank and credit card numbers) in a secure location and don't divulge Social Security or credit card numbers except when required by trusted sources.</p> <h3>19. Maintain a Healthy Lifestyle</h3> <p>The greatest wealth is health! Eat healthy meals, be physically active, get adequate sleep, and avoid vices, such as cigarettes and pot, that are expensive and can cause future problems.</p> <h3>20. Build Your Human Capital</h3> <p>Never consider your education finished. To advance in your career, continue to learn skills that employers and/or clients (if self-employed) value and maintain a robust professional network.</p> <h3>21. Keep Learning About Money</h3> <p>Some helpful websites for information about young adult finances include <a href="http://www.moneyunder30.com/">Money Under 30</a>, <a href="http://20somethingfinance.com/">20 Something Finance</a>, <a href="http://www.cashcourse.org/">Cash Course</a>, and, of course, <a href="http://www.wisebread.com/">Wise Bread</a>.</p> <p><em>Did you learn personal finance in college?</em></p> <div class="field field-type-text field-field-guestpost-blurb"> <div class="field-label">Guest Post Blurb:&nbsp;</div> <div class="field-items"> <div class="field-item odd"> <p><span style="font-style: normal; color: rgb(34, 34, 34); font-family: arial, sans-serif; font-size: 12.8000001907349px; line-height: normal;">Dr. Barbara O'Neill, Ph.D., CFP&reg;, is a Distinguished Professor and Specialist in Financial Resource Management for Rutgers Cooperative Extension. Follow Dr. O'Neill at&nbsp;</span><a href="https://twitter.com/moneytalk1" target="_blank" style="font-style: normal; color: rgb(17, 85, 204); font-family: arial, sans-serif; font-size: 12.8000001907349px; line-height: normal;">@moneytalk1</a><span style="font-style: normal; color: rgb(34, 34, 34); font-family: arial, sans-serif; font-size: 12.8000001907349px; line-height: normal;">.</span></p> </div> </div> </div> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dr-barbara-oneill">Dr. Barbara O&#039;Neill</a> of <a href="http://www.wisebread.com/21-things-that-young-adults-absolutely-need-to-know-about-money">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-personal-finance-tips-for-introverts">8 Personal Finance Tips for Introverts</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-things-people-who-are-good-with-money-never-say">5 Things People Who Are Good With Money Never Say</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-things-successful-millennials-do">7 Things Successful Millennials Do</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-leave-college-without-making-these-5-moves-for-financial-success">Don&#039;t Leave College Without Making These 5 Moves for Financial Success</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance college investing millennials money lessons saving youth Thu, 12 Feb 2015 16:00:11 +0000 Dr. Barbara O'Neill 1287112 at http://www.wisebread.com Mick Jagger Rarely Buys New and 4 Other Smart Money Lessons From Thrifty Musicians http://www.wisebread.com/mick-jagger-rarely-buys-new-and-4-other-smart-money-lessons-from-thrifty-musicians <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/mick-jagger-rarely-buys-new-and-4-other-smart-money-lessons-from-thrifty-musicians" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/young-stylish-muscian-Dollarphotoclub_57491582.jpg" alt="young stylish musician" title="young stylish musician" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you listen to entertainment gossip, you'd believe that most musicians don't know what they're doing with their money. After all:</p> <ul> <li>Willie Nelson had to record an album to pay the <a href="http://www.forbes.com/sites/kellyphillipserb/2013/04/29/willie-nelson-who-saved-his-career-and-his-house-with-the-irs-tapes-turns-80/">$16.7 million to the IRS</a>.<br /> &nbsp;</li> <li>Lionel Richie owed <a href="http://usatoday30.usatoday.com/life/people/story/2012-04-17/celebrity-tax-troubles/54319254/1">$1.1 million in unpaid taxes</a> to the IRS at one point.<br /> &nbsp;</li> <li>Singer Courtney Love was sued by American Express <a href="http://news.bbc.co.uk/2/hi/entertainment/8071378.stm">over $350,000 in unpaid debt</a>.</li> </ul> <p>However, there are also plenty of musicians that are actually making savvy financial decisions every day. It may surprise you to learn who they are. Here are some smart money lessons from five of our favorite musicians. (See also: <a href="http://www.wisebread.com/zooey-deschanel-never-pays-late-fees-and-5-other-smart-money-lessons-from-celebrities?ref=seealso">Zooey Deschanel Never Pays Late Fees and 5 Other Smart Money Lessons From Celebrities</a>)</p> <h2>1. Duff McKagan</h2> <p>While his Guns n' Roses bandmates, Axl Rose and Slash, stole all the spotlight during the 80's and 90's, nowadays Duff is the one making headlines as a savvy investor and wealth manager. After being hospitalized at age 30 for acute pancreatitis due to his heavy rock n' roll lifestyle, McKagan realized that he needed to clean up his act. He picked up a box of Guns n' Roses financials from the previous six years and he realized he couldn't understand anything. So, he decided that he had to take control of his finances.</p> <p>He quit his vices, enrolled in a community college (and eventually in a business school!), became more interested in finance, and made investments in companies that he understood. His hard work paid off. The investments he made in 1994 in Starbucks, Microsoft, and Amazon.com have approximate returns of <a href="http://www.reddit.com/r/todayilearned/comments/2g78h9/til_in_1994_former_guns_n_roses_bassist_duff/">5,337.14%, 2,347.92%, and 21,934.67%</a>, respectively.</p> <h3>Smart Money Lesson</h3> <p><a href="http://archive.fortune.com/2011/03/04/pf/duff_mckagan_meridian_rock.fortune/index.htm">In his own words</a>: &quot;I didn't want to be 60 years old and broke, having made all this money in my twenties&hellip; that was my simple goal.&quot; Don't take a backseat in your finances. If you don't understand something in your financial statements, do the necessary research to improve your understanding, and ultimately your financial situation.</p> <h2>2. Nicole Scherzinger</h2> <p>Despite her financial success, the former Pussycat Doll and current solo artist Nicole Scherzinger still looks for the best deal possible.</p> <p>During her college years, <a href="http://www.dailymail.co.uk/home/moslive/article-1393458/Nicole-Scherzinger-X-Factor-boss-Simon-Cowell-genius-funny.html">Scherzinger had to spend almost all of her money on tuition fees</a>. Since she had little cash left for everyday expenses, she had to learn to be very frugal with everything, including groceries. Old habits die hard. <a href="http://www.askmen.com/celebs/entertainment-news/nicole-scherzinger/bargain-hunter-nicole-scherzinger.html">She still hunts for the best bargains at the grocery store</a> and loves buying in bulk.</p> <h3>Smart Money Lesson</h3> <p>Even after you've &quot;made it,&quot; you should still look for bargains and discounts. If you have extra money available, but continue to hunt for deals, you will have even more available to save for your rainy and retirement days.</p> <h2>3. Paul McCartney</h2> <p>Even though Sir Paul has been singing &quot;Money can't buy me love&quot; since the 60's, it doesn't mean that he doesn't appreciate the value of money.</p> <p>His <a href="http://www.people.com/people/archive/article/0,,20086390,00.html">friends describe him</a> by saying that &quot;Paul truly believes that lavish is vulgar, and ostentation crude.&quot; He is so frugal that he even made her daughter Stella choose a state school to get a lower tuition. Another reason to put her in a state school was to keep her as down to earth as possible. Stella praises her dad for his decision and she is now a successful fashion designer.</p> <h3>Smart Money Lesson</h3> <p>When it comes to education, it's about quality, not price. With advances in educational technologies you can further your education without chaining yourself or your kids to an enormous educational debt. (See also: <a href="http://www.wisebread.com/8-cheap-ways-to-continue-your-education-without-going-back-to-school?ref=seealso">8 Cheap Ways to Continue Your Education Without Going Back to School</a>)</p> <h2>4. Mick Jagger</h2> <p>The Rolling Stones frontman gets plenty of satisfaction from his cars and computers. &quot;We don't like throwing computers away as soon as they don't work&hellip; We like cars to be repaired instead of junked,&quot; he explains about his <a href="http://www.theguardian.com/music/2003/jul/13/artsfeatures.popandrock">frugal philosophy</a>.</p> <p>Despite rumors of his lavish lifestyle, Jagger is very mindful of how he spends his fortune. Although he enjoys his bandmate Ron Wood's paintings, their $140,000 price tag scares him off from similar purchases.</p> <h3>Smart Money Lesson</h3> <p>Before tossing away a computer, car, or home appliance, check whether it can be repaired. Contact the manufacturer to see if the item's warranty still applies. Also, some repair shops provide a limited warranty for performed repairs.</p> <h2>5. Dave Grohl</h2> <p>In a 2003 interview the Foo Fighters frontman revealed, &quot;I've got tons of money, but I'm afraid to spend it. Knowing I don't even have a high school diploma to fall back on, I'm going to be really careful with what I've got.&quot;</p> <p>Many people thought he was done after Nirvana's leader Kurt Cobain died. Instead, Grohl started knocking on doors and collaborated with bands and musicians, such as Garbage, Nine Inch Nails, Killing Joke, David Bowie, Paul McCartney, the Prodigy, Iggy Pop, Tom Petty, and Stevie Nicks. Additionally, he is a member of Queens of the Stone Age and continues to tour with Foo Fighters.</p> <p>&quot;God, if I didn't have three children, I'd&hellip; spend 365 days out of the year on the road, probably. But I love what I do&quot;, <a href="http://www.theguardian.com/music/2014/nov/06/sp-dave-grohl-foo-fighters-sonic-highways-album-tv-show">Dave confesses about his job</a>.</p> <h3>Smart Money Lesson</h3> <p>The lesson is clear: find what you love and do it as long as you can. The key to job stability is to find a niche, network heavily, and work hard. Love your job so much that it doesn't feel like one and it will reward you for years to come &mdash; and not solely in steady paydays.</p> <p><em>Know of other frugal musicians? Let us know who your favorites are in the comments below.</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/mick-jagger-rarely-buys-new-and-4-other-smart-money-lessons-from-thrifty-musicians">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-great-teachable-money-moments-to-share-with-your-kids">6 Great Teachable Money Moments to Share With Your Kids</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-lessons-from-the-third-world">5 Money Lessons From the Third World</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-lessons-i-learned-from-watching-wheel-of-fortune">5 Money Lessons I Learned From Watching Wheel of Fortune</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/zooey-deschanel-never-pays-late-fees-and-5-other-smart-money-lessons-from-celebrities">Zooey Deschanel Never Pays Late Fees and 5 Other Smart Money Lessons From Celebrities</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/51-uses-for-coca-cola-the-ultimate-list">51 Uses for Coca-Cola – the Ultimate List</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Frugal Living celebrities frugal celebrities frugal musicians money lessons Thu, 18 Dec 2014 16:00:12 +0000 Damian Davila 1269786 at http://www.wisebread.com 5 Things Play Teaches You About Personal Finance http://www.wisebread.com/5-things-play-teaches-you-about-personal-finance <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-things-play-teaches-you-about-personal-finance" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/family-roleplaying-178431199-small.jpg" alt="family roleplaying" title="family roleplaying" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>I don't know anyone who can't wax poetic about playing as a child. Even my friends who had difficult childhoods remember playing, somewhere and with somebody, with fondness.</p> <p>There's something about remembering our childhood games, whether they were pickup games of baseball in the middle of the street or tag or imagining we were pirates deep in the woods, that makes us happy. Even as adults, with jobs and responsibilities and families and so much to do, we relish the hours that we can spend resting, relaxing, and enjoying our hobbies &mdash; also known as playing. That's because <a href="http://psychcentral.com/blog/archives/2012/11/15/the-importance-of-play-for-adults/">play is important</a>. (See also: <a href="http://www.wisebread.com/11-fun-games-that-make-you-smarter-too?ref=seealso">11 Fun Games That Make You smarter, Too</a>)</p> <p>Whether you are child or adult, play brings joy. It makes us excited and happy. And it all makes me wonder: What if we could bring even a little bit of that joy into tasks that can seem difficult or frustrating, like managing our personal finances? Could even these things become more like games?</p> <p>Try some of these ideas and let me know what you think!</p> <h2>1. Play Is Practice</h2> <p>More than anything else, <a href="http://www.journalofplay.org/sites/www.journalofplay.org/files/pdf-articles/5-3-interview-play-as-preparation.pdf">play seems to be practice for life</a>. The thing is, little kids don't like to practice. In fact, most of them don't have the focus to be able to practice in the same ways adults can. So they play. They play house, they play fireman, they play mommy and daddy and teacher. And in doing this, they learn about taking on different roles, conflict resolution, and so much more. Their practice prepares them for real life.</p> <p>As adults, we can remember that practice is at least as important as studying a topic. While there's nothing wrong with researching what investments to make next, we might find ourselves more engaged if we actually jump in and practice. <a href="http://www.investopedia.com/simulator/">Trade with fake money</a> or create sample budgets based on different salaries, to figure out how to make things work for you in real life.</p> <h2>2. Play Is Fun</h2> <p>As adults, we make personal finance into work. We get serious about the budget, or study hard to determine how to invest our money. We feel like we need to buckle down and get serious about our finances. Again, there's nothing wrong with this, but what if we could make the whole process less painful?</p> <p>Try <a href="http://online.wsj.com/news/articles/SB10001424052702304330904579137410675036086">setting aside some money for &quot;fun investing,&quot;</a> or make budgeting a game by coming up with creative ways to spend less in different categories.</p> <h2>3. Play Promotes Counterfactual Thinking</h2> <p>Counterfactual thinking means thinking outside the box of what is, or in many cases, what seems to be. People who are good at thinking counterfactually are the ones who, when solving a problem, ask us to reexamine our assumptions, rather than just suggesting new ways to work within them. This sort of thinking can offer huge benefits in so many areas, because we often make assumptions that aren't true, or that aren't necessary. And <a href="http://www.smithsonianmag.com/science-nature/let-the-children-play-its-good-for-them-130697324/?no-ist">pretend play seems to help children improve their counterfactual thinking</a>.</p> <p>Most adults would be embarrassed to be caught pretending. We can, though, pretend within a certain context. I have an example of this from my own recent history. For a long time, my husband and I assumed that we could not afford grass-fed beef, even though avoiding antibiotics and hormones is important to us. Recently, though, we researched different ways to purchase this meat, and found that, if we buy wholesale rather than from a store, it's much more affordable. We had assumed we'd be buying from Whole Foods or Costco, but now we're purchasing direct from a rancher.</p> <p>To learn to examine your assumptions, or &quot;pretend&quot; in the context of your own finances, start by writing down your assumptions. For instance, you might assume that you don't have enough money for something, or that you have to keep a certain percentage of your assets invested in stocks, or that there's not another method for buying something. Then ask around and do some research to see if your assumptions are, in fact, correct.</p> <h2>4. Play Is Social</h2> <p>When kids play, they are learning social skills. Even when they are not playing with other kids, play itself seems to help the brain socially, so that those who play function better socially than those who do not. And adults seem to play in order to enhance their social interactions, to build community and find friends who they can connect with on a deep level.</p> <p>We can reclaim our sense of play in personal finance by making aspects of our financial life social. If you live with roommates or a significant other, make sure you are both involved in budgeting. Even set aside some time to enjoy a meal together and go over finances in a less stressful environment. You could also <a href="http://www.fool.com/investmentclub/investmentclub05.htm">start an investment club</a> or, at least, talk through some of your financial questions with trusted friends or family members. All of this is likely to make finance more enjoyable, more like play and less like work.</p> <h2>5. Play Encourages Self-Regulation</h2> <p>The more kids play and the higher the maturity level of their pretend play, the more they learn to regulate themselves. Self-regulation touches on many aspects of life &mdash; we should be able to regulate ourselves emotionally, to keep desires (even strong desires) in check, and to make choices focused on long-term benefit rather than short-term pleasure.</p> <p>Self-regulation seems to tie naturally to personal finance. Most of us want to be able to resist spending money when we don't have money to spend or when we are saving our money for something else. We also want to be able to leave our investments alone if we believe the investment is a sound one, even when the market is fluctuating and we feel unsure.</p> <p>Again, it will help us to &quot;pretend&quot; in the context of our finances. If we are tempted to make a purchase that we really shouldn't make right now, we can envision how we will feel in two days (or even two hours!) if we make the purchase, and then again if we don't. If we are trying to leave an investment where it is, we can imagine ourselves using the money in 30 years, happy that we left it where it was.</p> <p><em>What do you do to make personal finance more like play? Does that help keep you on track financially?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/sarah-winfrey">Sarah Winfrey</a> of <a href="http://www.wisebread.com/5-things-play-teaches-you-about-personal-finance">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-5"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-in-their-30s-did-you">5 Financial Lessons Everyone Should Learn in Their 30s (Did You?)</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-most-important-financial-lessons-people-learn-in-their-20s-did-you">The 5 Most Important Financial Lessons People Learn in Their 20s (Did You?)</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-reasons-why-you-dont-have-financial-common-sense-and-how-to-get-it">4 Reasons Why You Don&#039;t Have Financial Common Sense (and How to Get It)</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-you-know-these-5-financial-lessons-most-people-learn-in-their-40s">Do You Know These 5 Financial Lessons Most People Learn in Their 40s?</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/money-mistakes-two-popular-board-games-teach-kids">Money Mistakes Two Popular Board Games Teach Kids</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Personal Development financial lessons games money lessons play Thu, 06 Nov 2014 14:00:06 +0000 Sarah Winfrey 1251282 at http://www.wisebread.com 8 Personal Finance Tips for Introverts http://www.wisebread.com/8-personal-finance-tips-for-introverts <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-personal-finance-tips-for-introverts" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman-paying-bills-89876418-small.jpg" alt="woman paying bills" title="woman paying bills" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>So, you're an introvert. Whether you've known this forever or are just realizing it, welcome to our happy, friendly, quiet tribe.</p> <p>Introversion can play a role in everything from earning power to how and when and why I make the investment decisions I do. Here are some financial tips based on the strengths and weaknesses that I've found in myself, and that other introverts tend to share. (See also: <a href="http://www.wisebread.com/7-personal-finance-lessons-from-bruce-springsteen?ref=seealso">7 Personal Finance Tips From Bruce Springsteen</a>)</p> <p>Remember, as you read these, that not all introverts have every characteristic of introversion. You may find that you have already learned to be good at something that is a weakness for many of your fellow introverts, or that you actually struggle with something that most introverts have as a strength.</p> <h2>Maximize Your Strengths</h2> <p>If you're an introvert, use the things that you're already good at to improve your financial life. Just don't let someone louder talk you out of them!</p> <h3>1. Save&hellip; A Lot</h3> <p>Introverts tend to be conscientious, and <a href="http://www.ns.umich.edu/new/releases/8335-conscientious-people-earn-more-and-save-more-for-retirement">conscientious people save more for retirement</a> than others. In a world where <a href="http://www.statisticbrain.com/retirement-statistics/">only 4%</a> of the current workforce will have enough saved for retirement by age 65, that's a significant advantage.</p> <p>This propensity towards saving won't just help you with retirement. If you're careful, you might be able to avoid a lot of the debt that many find themselves in. You might even be able to purchase your vehicles with cash!</p> <p><strong>Tip</strong>: Maximize this advantage by calculating how much you think you'll need for retirement and working backwards to determine how much you should be saving every month. Decide how much you want for emergency or other savings funds, too, and work towards those goals.</p> <h3>2. Play the Long Game</h3> <p>As an introvert, <a href="http://www.gurufocus.com/news/213545/why-introverts-make-better-value-investors">you're likely pretty good at delaying gratification</a>. This means that you understand that wealth generally grows slowly, and you're ok with that. You can accept small gains with a smile, because you understand that they will add up over time.</p> <p>Using this to your advantage means knowing that you can ride out a recession or other devaluation of your assets without panicking and changing everything. You will be able to see that your path to wealth will have some ups and downs &mdash; maybe even big ones &mdash; and that there are still many ways for things to work out in the end.</p> <p><strong>Tip</strong>: Plan ahead for financial difficulties &mdash; maybe make sure you have a substantial emergency fund or that you can work another 10 years if the market isn't right to retire when you're 65.</p> <h3>3. Stay Calm</h3> <p>Introverts tend to be among the calmest people out there. They are usually the best prepared and, in our extroverted world, they tend to be used to acting different from how they are feeling. This means that they're less likely to panic when something unexpected happens. Whether the market crashes, there's an unexpected medical bill, or an investment that looked sure turns south, they will be able to quell panic and make level-headed decisions.</p> <p><strong>Tip</strong>: When something bad happens financially, use your natural calm to your advantage. If the market crashes, don't sell because you're afraid. If there are unexpected bills, come up with a creative way to pay them because you won't be driven by terror. And anytime an investment goes wrong, use your clear head to decide how to get out of the situation having sustained the least damage.</p> <h3>4. Listen</h3> <p>Introverts tend to be good at listening before they speak. This makes them good leaders, but it can also make you a good investor.</p> <p><strong>Tip</strong>: It's easy to jump into investing with your own strategy, or with one you haven't really researched. So many people think they can beat the market, and so few actually do. As an introvert, you have the listening skills to hear what others do or have done, what has worked and what hasn't, and to craft your own investing strategy around the successful strategies of others.</p> <h2>Work Your Weaknesses</h2> <p>While using your strengths will take you far, learning to overcome your weaknesses can add even more to your financial health.</p> <h3>5. Take Risks</h3> <p>Introverts aren't necessarily risk-averse, but <a href="http://www.psychologytoday.com/blog/the-introverts-corner/201301/introverts-and-risk-look-think-leap">they do tend to be more calculated about the risks they take than extroverts</a>. However, the key part of that is actually taking the risk. You must, at some point, take the leap, and that means letting go of whatever you've been holding onto, financially, and trying something new.</p> <p><strong>Tip</strong>: The tip is to let go when you know it's time, and you will know. This may mean trying new types of investments, but only after you know that they fit your overall strategy and have chosen your tactics for investing in them. It may mean being willing to spend money &mdash; even a lot of money &mdash; on something that is important to you or that will make your life better, even if you'd rather the money pad your savings account.</p> <h3>6. Stop Researching</h3> <p>While it's an overall advantage to research and ponder before you make financial decisions, you do eventually need to do something. Otherwise, you may end up crying over missed financial opportunities. Many <a href="http://www.learnvest.com/2013/07/why-introverts-make-better-investors-123/">introverts missed out on low stock prices</a> at the end of the recession for this very reason: They weren't sure that the market had really bottomed out, so they weren't sure they should buy.</p> <p>This tends to go alongside taking risks. In the end, no matter how much research you do, there's always some risk. At some point, you have to accept that so you have a chance at reaping rewards.</p> <p><strong>Tip</strong>: Ask yourself, &quot;Do I know enough to make an educated decision?&quot; If you aren't sure, talk to someone close to you. When you know enough, stop researching, even if there are things you haven't read yet. Instead, do what needs to be done.</p> <h3>7. Learn to Negotiate</h3> <p><a href="http://www.thepowerofintroverts.com/2011/02/02/8-negotiation-tips-for-introverts-from-my-seminar-at-the-harvard-club/">Introverts tend to dislike conflict</a> and, therefore, give in rather than negotiate because they dislike the ongoing disagreement. However, knowing how to negotiate &mdash; everything from the price of your new car to your salary &mdash; can help you come out better off financially. Most introverts are great at preparing for negotiating &mdash; they know how much they should be paid or what is a fair price for something they are buying. But the problem comes in carrying out the actual negotiation.</p> <p><strong>Tip</strong>: If you have the chance, try to <a href="http://www.getrichslowly.org/blog/2012/09/19/tips-for-the-introverted-negotiator/">negotiate via email</a>. This can help minimize the disagreement and it gives you the chance to put your thoughts into words, which comforts many introverts. If that isn't possible, decide what you want to say and how you want to say it. It may help to write out a script, even if you have to memorize it before you go to a meeting.</p> <h3>8. Make Yourself Valuable</h3> <p>Gone are the days when you have to promote yourself loudly or you'll never get ahead. Now, many <a href="https://www.americanexpress.com/us/small-business/openforum/articles/quiet-influence-6-advantages-introvert/">employers are looking for people with fresh ideas</a> and those who are good at building others up. These tend to be skills that introverts already have or that it is easy for them to acquire.</p> <p>This means that, finally, the playing field between introverts and extroverts is leveling when it comes to the amount of money you could potentially bring in.</p> <p><strong>Tip</strong>: Instead of being someone you're not in order to get that promotion, trying using skills that are more natural to you. Your ability to listen well and come up with creative solutions can help you get ahead, especially if you find the right company.</p> <p><em>Are you an introvert? How has it affected you financially? Please speak up and share in comments!</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/sarah-winfrey">Sarah Winfrey</a> of <a href="http://www.wisebread.com/8-personal-finance-tips-for-introverts">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-6"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/21-things-that-young-adults-absolutely-need-to-know-about-money">21 Things That Young Adults Absolutely Need to Know About Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-things-people-who-are-good-with-money-never-say">5 Things People Who Are Good With Money Never Say</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-obstacles-that-are-especially-tough-for-women">5 Financial Obstacles That Are Especially Tough for Women</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-questions-that-reveal-if-you-and-your-partner-are-a-money-match">7 Questions That Reveal If You and Your Partner Are a Money Match</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance introverts investing money lessons saving Thu, 23 Oct 2014 13:00:06 +0000 Sarah Winfrey 1241336 at http://www.wisebread.com 5 Things People Who Are Good With Money Never Say http://www.wisebread.com/5-things-people-who-are-good-with-money-never-say <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-things-people-who-are-good-with-money-never-say" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman-paying-bills-90094229-small.jpg" alt="woman paying bills" title="woman paying bills" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Head to the self-help section of any bookstore and you'll find a whole row of books about how your mindset is what is preventing you from getting what you want in life. It's a really appealing concept. Imagine if the only thing standing between you and love, wealth, and happiness were the way you looked at the world. (See also: <a href="http://www.wisebread.com/8-things-people-with-good-credit-never-do?ref=seealso">8 Things People With Good Credit Never Do &mdash; Do You?</a>)</p> <p>Wait &mdash; it kind of is, at least where money's concerned. While I don't think a change in mindset is any guarantee you'll make millions (no matter what those self-help books say), it can help you make more of what you've got. That may not be as dramatic, but it can have a pretty powerful impact on your bottom line.</p> <p>How do you talk about money? Here are five things that people who are really good at managing their money never say &mdash; and why you shouldn't say them either.</p> <h2>1. &quot;I Don't Have Enough Money to Save&quot;</h2> <p>Yes, the less money you make, the harder it is to save some. But unless you're falling short in terms of paying for a modest place to live and enough food to eat, you can probably scrape together at least a few dollars per month. In fact, the average American apparently has more than<a href="http://www.experian.com/assets/simmons-research/white-papers/2011-discretionary-spend-report.pdf"> $12,000 in discretionary income each year</a>. Whether you're on the low end or the high end of that range, it suggests that many of us have money to save; we just choose not to. Plus, saving is a habit. If you make one now, it'll pay off more and more over time. (See also: <a href="http://www.wisebread.com/37-savings-changes-you-can-make-today?ref=seealso">37 Savings Changes You Can Make Today</a>)</p> <h2>2. &quot;Investing Is Too Complicated&quot;</h2> <p>Investing isn't rocket science. It's just easier to believe that it is. That way, you don't have to actually, like, <em>do</em> it.</p> <p>You know that thing that you learned that seemed really complicated and difficult at first, and now it seems so easy that you can't believe you were ever so intimidated by it? Yeah. Investing's like that. People who are good with money &mdash; or at least good at making it grow &mdash; tend to go in and try to learn all they can. Then they practice and learn and make mistakes and, ultimately, become investors. The truth is that investing isn't hard; it's just hard work.</p> <h2>3. &quot;I Can Either Enjoy the Present or Save for the Future&quot;</h2> <p>Nice try, but actually, people who are good with their money balance both. Should you save money for emergencies, retirement and future desires? Absolutely. Should you do it to the exclusion of every little indulgence? Absolutely not. And you shouldn't just avoid this route because it's austere, and sad and more than little ascetic. You should avoid total self denial because for most people, it just isn't a sustainable long-term strategy. So save your money for the future. Just be sure to enjoy a little bit now too, OK?</p> <h2>4. &quot;If Only I Had X, I Would Be Happy&quot;</h2> <p>Money can buy so many things that it often becomes a proxy for happiness. If I had X dollars, I could do Y and I would happy. And maybe you would be. For a while. The problem is that once you get Y, it probably won't be long before you're looking for Z.</p> <p>Now, I won't go as far as to say that money can't buy happiness. It's definitely a big piece of the puzzle. But people who are really good with their money know that it's just one piece. If only we could buy something that would solve all of our problems, right? It's a great fantasy. But people who are good with their money know that it's just that.</p> <h2>5. &quot;I Can't Afford It&quot;</h2> <p>The term &quot;afford&quot; is entirely subjective. What I mean by that is that even the very richest people &mdash; the top of the top in terms of income &mdash; have limits. Sure, those limits may include a mega mansion, or a private zoo, or a whole island, but there's still a limit somewhere. All wealth is finite. So, whether you have a lot of money or just a little, your financial life is about making choices.</p> <p>Rather than feeling sorry about what you think you can't afford, think about it from the perspective of what you <em>want</em> to afford. If you want to travel around the world, you can afford to do that &mdash; but you just might have to give up your house and your car and your cushy salary to do it. If you want to retire early, you can make that happen &mdash; but it'll probably mean working more hours and taking fewer vacations along the way. Rather than looking at life in terms of what is unattainable, people who are really good with money look at what they want, figure out how much it'll cost, and do what it takes to make it happen.</p> <p><em>Do you know people who are good with money? What are some of the things you never hear them say? Share them in the comments!</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tara-struyk">Tara Struyk</a> of <a href="http://www.wisebread.com/5-things-people-who-are-good-with-money-never-say">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-7"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/21-things-that-young-adults-absolutely-need-to-know-about-money">21 Things That Young Adults Absolutely Need to Know About Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-personal-finance-tips-for-introverts">8 Personal Finance Tips for Introverts</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-obstacles-that-are-especially-tough-for-women">5 Financial Obstacles That Are Especially Tough for Women</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-questions-that-reveal-if-you-and-your-partner-are-a-money-match">7 Questions That Reveal If You and Your Partner Are a Money Match</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance investing money habits money lessons saving Thu, 09 Oct 2014 13:00:03 +0000 Tara Struyk 1229269 at http://www.wisebread.com 5 Money Lessons People Learn at Their First Job http://www.wisebread.com/5-money-lessons-people-learn-at-their-first-job <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-money-lessons-people-learn-at-their-first-job" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/stressed-businessman-479146411-small.jpg" alt="stressed businessman" title="stressed businessman" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Your first job teaches a lot of important lessons. For example, you learn how to be punctual, how to get along with others, and how to develop a thick skin. But these aren't the only lessons you learn. A first job teaches several lessons specifically devoted to money, too. (See also: <a href="http://www.wisebread.com/retail-job-lessons-learning?ref=seealso">7 Lessons Learned From Working Retail</a>)</p> <p>Here are five key ones.</p> <h2>1. You'll Bring Home Far Less Than You Expected</h2> <p>Whether your first job is in high school or after college, the amount you bring home is always less than your hourly wage or salary. Although everyone knows about the Tax Man, you might be surprised to learn just how much of your check goes toward federal and state taxes. You can lose up to 25% of your pay to taxes, and that's before other payroll deductions, such as retirement, disability insurance, and 401(k) contributions. So, if you're earning $50,000 a year, don't get excited and think you'll bring home $4,000 a month. After subtracting all deductions, you'll be lucky to bring home $3,000 a month.</p> <h2>2. You Realize How Much Things Really Cost</h2> <p>If you're living at home with your parents supporting you, you may not fully realize how hard it is to stretch a buck. Getting a first job can also give us a dose of reality. Before, you might have spent your allowance impulsively. But now, you have to budget and track where your money goes. This may seem like a major downer, but you'll develop smart money habits that offer long-term benefits. If you have a budget, it'll be easier to live within your means.</p> <h2>3. The Job Perks Aren't Always Attractive</h2> <p>While preparing for your first job in college, you might envision yourself working for a company that offers amazing benefits, such as a 401(k) match and paid health insurance. But once you get into the workforce, the reality isn't as picturesque.</p> <p>The truth is, many employers have been hit with economic problems and don't have the cash flow to offer an attractive benefits package. To survive, these companies might ditch their 401(k) match program and they may no longer offer paid employee health insurance, or they'll pay a very small percentage of this insurance. Either way, the absence of these perks can impact how fast you're able to grow your retirement account; and if you're paying your own health insurance, that's less money on your paycheck.</p> <h2>4. Bosses Don't Give Money That You Don't Ask For</h2> <p>If you're interviewing for a first job after college, you may feel that your knowledge justifies a particular wage or salary. However, your boss may offer far less for the position than you anticipated. Like most things in life, salaries are negotiable; and if you don't open your mouth and negotiate your salary, don't expect your boss to pay up.</p> <p>Even if you don't receive the salary or wage you had in mind, your boss might be willing to meet you halfway &mdash; but you won't know unless you ask. There's a simple way to approach this situation. You can say something like, &quot;I appreciate the offer of $30,000, but I was hoping to be in the $37,000 range based on my degree and average salaries in the area.&quot; (See also: <a href="http://www.wisebread.com/how-to-negotiate-higher-pay-at-your-next-new-job?ref=seealso">How to Negotiate Higher Pay at Your Next New Job</a>)</p> <p>If you start practicing how to negotiate salaries early in your career, you'll master this art and become skilled as you move up the corporate ladder.</p> <h2>5. Buying Lunch Every Day Adds Up</h2> <p>When you're rushing to leave the house each morning, there might be little time to make your lunch &mdash; or maybe you don't like sandwiches or frozen meals and prefer grabbing a hot meal each day. It might be fun and convenient to dine out with your coworkers, but one thing you'll learn at your first job &mdash; especially if it's also your first full-time job &mdash; buying lunch every day adds up.</p> <p>You might only spend $5 a day on food and coffee, but that's $25 a week or $100 a month. Since your first job will likely have an entry-level salary, spending $100 a month on lunch might be too much for a modest salary. There are better uses for your money, such as contributing more to a retirement account or beefing up your emergency savings account.</p> <p><em>Do you have other lessons to add that people learn at their first job? Did you learn it the hard way? Let me know in the comments below.</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/5-money-lessons-people-learn-at-their-first-job">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-8"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-mistakes-you-need-to-stop-making-by-30">5 Financial Mistakes You Need to Stop Making by 30</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/make-these-7-money-moves-now-or-youll-regret-it-in-20-years">Make These 7 Money Moves Now Or You&#039;ll Regret It in 20 Years</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-6-biggest-financial-decisions-in-your-20s">The 6 Biggest Financial Decisions in Your 20s</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-savings-tricks-you-havent-tried-yet">5 Savings Tricks You Haven&#039;t Tried Yet</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Career and Income first job money lessons paycheck retirement taxes Mon, 06 Oct 2014 09:00:07 +0000 Mikey Rox 1227737 at http://www.wisebread.com Do You Know These 5 Financial Lessons Most People Learn in Their 40s? http://www.wisebread.com/do-you-know-these-5-financial-lessons-most-people-learn-in-their-40s <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/do-you-know-these-5-financial-lessons-most-people-learn-in-their-40s" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man-paying-bills-86479709-small.jpg" alt="man paying bills" title="man paying bills" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>By the time you hit your 40s, you're supposed to have figured everything out, right? Then suddenly you're 40, and guess what? Life is still pretty confusing. Join the club!</p> <p>Luckily, learning doesn't stop when you hit the <em>big four-oh</em>.</p> <p>First, let's review what you've already learned.</p> <p>In your 20s, you (hopefully) learn and apply financial lessons like the value of compound interest, the difference between good and bad debt, savings strategies like dollar cost averaging, and more. (See also: <a href="http://www.wisebread.com/the-5-most-important-financial-lessons-people-learn-in-their-20s-did-you?ref=seealso">The 5 Most Important Financial Lessons Everyone Should Learn in Their 20s</a>).</p> <p>In your 30s, you learn about balancing the budget between big-ticket items like kids, retirement, and home ownership, you choose debt (including mortgages) wisely, align yourself with financial experts, and learn to live within your means. (See also: <a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-in-their-30s-did-you?ref=seealso">5 Lessons Everyone Should Learn in Their 30s</a>).</p> <p>Now you're in your 40s, and things are changing (again). Some of the ground rules you lived by in your 20s and 30s may not serve you anymore. Here are five financial lessons that generally come to light in your 40s.</p> <h2>1. Risk Tolerances Change Over Time</h2> <p>With some investment experience under your belt and retirement still a long way away, you might be feeling a little more gutsy with your <a href="http://www.wisebread.com/asset-allocation-for-all-markets">asset allocation</a>, and want to rejig your portfolio to be more aggressive. In other cases, you might have survived a few market (and life) downturns, and are feeling more risk averse.</p> <p>This is why it's important to have regular financial reviews (ideally with your <a href="http://www.wisebread.com/9-signs-you-need-to-fire-your-financial-planner">financial planner</a>) to ensure you're feeling good about your investments, and can track your progress towards your life goals.</p> <h2>2. You're Not Invincible</h2> <p>I remember as a child, falling off my bicycle was a no-brainer: get back up and keep going. Falling off a bicycle in our 40s isn't so easy; we don't bend any more &mdash; we break!</p> <p>You might have had a health scare or serious illness or injury, and if you're lucky it didn't hurt your finances as well. In your 20s, hopefully you took advantage of good health and low premiums to insure yourself. Now it's time to do an insurance review to ensure you're properly (but not overly) covered.</p> <p>To get started, check out these Financial IQ Tests:</p> <ul> <li><a href="http://www.wisebread.com/financial-iq-test-how-healthy-is-your-disability-insurance">Financial IQ Test: How Healthy is Your Disability Insurance?</a></li> <li><a href="http://www.wisebread.com/financial-iq-test-how-healthy-is-your-life-insurance-plan">Financial IQ Test: How Healthy is Your Life Insurance Plan?</a></li> <li><a href="http://www.wisebread.com/financial-iq-test-how-healthy-is-your-health-care-plan">Financial IQ Test: How Healthy is Your Health Care Plan?</a></li> </ul> <h2>3. Your Finances Aren't Invincible Either</h2> <p>Think of your finances in the same way as you and that bicycle. There is less room for mistakes and slack savings strategies the older we get, given that we have an ever-decreasing amount of time to take advantage of compound growth in order to recover. Make sure your financial health is in tip-top shape; recovering from &quot;broken finances&quot; is no easy task.</p> <h2>4. Inflation Sucks</h2> <p>Once you reach your 40s, you understand the real effects of inflation. When you were a kid a candy bar only cost about 25 cents &mdash; now it's 500% more at about $1.50! Carry this forward another 30-40 years when you're retired, and that same candy bar will be even more expensive. The money you save for retirement right now needs to go further than you think. Take inflation into account when planning for the future, and ensure your investments are structured to (at least) keep up with inflation.</p> <h2>5. 40 Is Not Old!</h2> <p>40 used to be &quot;the new 30,&quot; and now 50 is &quot;the new 40.&quot; As we age (and also live longer and longer) we realize that our younger preconceptions of certain ages has been skewed. In your 20s you might have thought that you'd have it all sorted out by your 40s (since you'll be old by then, right?), and suddenly here you are, and you're alive and kicking and still trying to figure life out like everybody else.</p> <p>Forgive yourself. You're still young. You can change careers, embark on new adventures, and make a few mistakes like the rest of us. Not only that, but you have a long time until retirement yet, so under the premise of asset allocation (and keeping up with inflation), it behooves you to keep a long-term vision for your portfolio.</p> <p><em>What crucial financial lessons did you learn in your 40s? Please share in comments!</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nora-dunn">Nora Dunn</a> of <a href="http://www.wisebread.com/do-you-know-these-5-financial-lessons-most-people-learn-in-their-40s">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-9"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-financial-lessons-people-learn-in-high-school-did-you">9 Financial Lessons People Learn in High School — Did You?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-in-their-30s-did-you">5 Financial Lessons Everyone Should Learn in Their 30s (Did You?)</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-most-important-financial-lessons-people-learn-in-their-20s-did-you">The 5 Most Important Financial Lessons People Learn in Their 20s (Did You?)</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-by-kindergarten">5 Financial Lessons Everyone Should Learn by Kindergarten</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-things-play-teaches-you-about-personal-finance">5 Things Play Teaches You About Personal Finance</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance financial education financial lessons money lessons Thu, 02 Oct 2014 13:00:06 +0000 Nora Dunn 1225626 at http://www.wisebread.com 9 Financial Lessons People Learn in High School — Did You? http://www.wisebread.com/9-financial-lessons-people-learn-in-high-school-did-you <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-financial-lessons-people-learn-in-high-school-did-you" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/high-school-student-78741584-small.jpg" alt="high school student" title="high school student" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Whether it be in the classroom or via real life experience, high schoolers get the chance to learn and apply a lot of the basic tenets of personal finance and money management. Some of them apply and retain the information, while others ignore, forgets or simply misunderstand it. (See also: <a href="http://www.wisebread.com/the-5-most-important-financial-lessons-people-learn-in-their-20s-did-you?ref=seealso">The 5 Most Important Financial Lessons People Learn in High School (Did You?)</a>)</p> <p>Which way did you go?</p> <p>Check below for the nine financial lessons most people learn in high school, and then ask yourself: are you (financially) smarter than a 12th grader?</p> <h2>1. Money Is Difficult to Come By</h2> <p>Many people who grow up with loans, credit cards, and other forms of debt have lost their understanding of the value of money. Money is valuable for a reason; because there is a finite amount of it. With a culture that relies so heavily on credit and debt to compensate for the finite nature of money, we tend to lose sight of the value that it really holds. High schoolers learn this by having to work for their spending money, or by receiving an allotted sum from Mom and Dad, and once it's gone, it's gone.</p> <h2>2. Budgeting Is a Weekly Task</h2> <p>Budgeting for your expenses is not a one-and-done proposition. In fact, budgeting on a weekly basis is the most prudent way to handle money, since expenses (and sometimes income) can change from week to week. Teens and young adults have to do this to pay for their gas, entertainment, or other activities they want to participate in. As adults, our approach should be no different.</p> <h2>3. Saving Money Is a Slow and Consistent Process</h2> <p>High schoolers who do try to save money learn that it's a slow and incremental process, where small contributions add up over time. Trying to put large sums of money away all at one time will be difficult, and though possible at times can cause morale to sink whenever the process can't be repeated. The trick to saving money is putting away just a little bit at a time over a long period. Consider an automatic transfer from your checking to savings account every week, set to something small like $20.</p> <h2>4. It's Not Always Easy to Get a Job</h2> <p>Teens with little experience and low job-skills know the difficulty of finding good work. Jobs, though widely available in most cases don't exist in a vacuum. They exist because someone else is making money and needs people to help them make more money. Otherwise, neither you or anyone else would be getting hired. That means in reality, a job is a precious commodity that's difficult to come by.</p> <h2>5. Frivolous Spending Should Be Limited (and Cash Only)</h2> <p>When the money set aside for going out on the weekend is gone, that's the end of the fun. At that point, most high schoolers need to go home and do something that they don't have to pay for. That's a lesson that's harder to learn when you're an adult, especially when a swipe of the credit card makes you feel like you never run out of money. But it once again highlights the importance of living by a budget and within your means.</p> <h2>6. A Cheap Car Can Be a Good Thing</h2> <p>Remember when you were happy to have any car that would get you from point A to point B? Those were good times (good enough for Brad Paisley to write a <a href="https://www.youtube.com/watch?v=pTF6UZbq9Lk">song about them</a>),and highlighted the practicality of avoiding a car payment and paying for your car in cash.</p> <h2>7. Saving for Retirement Can and Should Start Early</h2> <p>Many teens have money put away in a long-term savings account by their parents. Starting a long-term savings plan that early in life means that their money (if invested wisely) will grow at a steady rate and become a significant amount depending on the amount of cash and investment type. The key though is to understand the <a href="http://www.teensguidetomoney.com/Saving/individual-retirement-account-ira/">retirement savings options</a> and start early.</p> <h2>8. Personal Finances Are Closely Tied to Personal Freedom</h2> <p>The less you're in debt and the more you're able to stretch your money and budget for the things you want, the more personal freedom you'll have. Teens learn this quickly as they begin to drive and take on small financial responsibilities. If they carry it into adulthood the benefits are far-reaching, often helping them avoid taking on too much debt or developing lifestyles that can't be maintained by their income.</p> <h2>9. There is No Such Thing as a Free Lunch</h2> <p>Popularized by Nobel Prize-winning economist Milton Friedman, this simple phrase is often echoed by fathers in the hopes of instilling a strong work ethic in their kids. The phrase itself is meant to quickly articulate the idea that nothing in this world is truly free. Though people might give you things for free, those things still required somebody to work and pay for them. Whether we agree with it or not, it's one of the harsh realities that we face living in a society built around economics and the free market. Teens learn this quickly as they begin to transition out of their parents house and into the &quot;real world&quot; where nothing is paid for, and they're now responsible for most of their own expenses.</p> <p><em>What financial lessons did you learn in high school? Do you think more emphasis should be put on real-life finances and budgeting in high school? Let me know in the comments below.</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/9-financial-lessons-people-learn-in-high-school-did-you">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-10"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-you-know-these-5-financial-lessons-most-people-learn-in-their-40s">Do You Know These 5 Financial Lessons Most People Learn in Their 40s?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-in-their-30s-did-you">5 Financial Lessons Everyone Should Learn in Their 30s (Did You?)</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-most-important-financial-lessons-people-learn-in-their-20s-did-you">The 5 Most Important Financial Lessons People Learn in Their 20s (Did You?)</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-by-kindergarten">5 Financial Lessons Everyone Should Learn by Kindergarten</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-things-play-teaches-you-about-personal-finance">5 Things Play Teaches You About Personal Finance</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance financial education financial lessons money lessons Tue, 26 Aug 2014 13:00:03 +0000 Mikey Rox 1195535 at http://www.wisebread.com 10 Places to Get Free Personal Finance Classes http://www.wisebread.com/10-places-to-get-free-personal-finance-classes <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-places-to-get-free-personal-finance-classes" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/business-class-78771820-small.jpg" alt="finance class" title="finance class" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Many people don't realize that well-structured personal finance classes are widely available for free. These classes are often provided by major universities like Yale and Purdue, and are usually available online via a free download; you just need to know where to look.</p> <p>Taking advantage of these resources can improve your ability to save money, budget, extend cash flow, and even get a handle on more advanced personal finance topics like investing and saving for your retirement. So, if you've been trying to get your finances in order but just aren't sure where to find the information you need to do so, this is your one-stop shop for the best available resources. (See also: <a href="http://www.wisebread.com/8-cheap-ways-to-continue-your-education-without-going-back-to-school?ref=seealso">8 Cheap Ways to Continue Your Education Without Going Back to School</a>)</p> <p>Some of these courses address specialty areas (retirement, financial markets, etc.) while others are broader and handle personal finance in a more general sense. Whatever you need, you're likely to find a suitable course here.</p> <h2>1. MoneySKILL</h2> <p>Developed by the AFSA Education Foundation, <a href="http://www.moneyskill.org">MoneySKILL</a> is a free resource geared towards helping young adults learn how to manage their money. You can read over the <a href="http://www.moneyskill.org/about.cfm">different modules</a> as well as see a <a href="http://www.moneyskill.org/demo/index.cfm">demo</a> of the actual program.</p> <h2>2. CNN Money 101</h2> <p>The content is text-based, yet easy to read and follow. The course is given <a href="http://money.cnn.com/magazines/moneymag/money101/">in 23 different lessons</a>, covering everything from making a budget to managing your 401(k). Though you lose the course-feel without an instructor, the content is classroom-level quality and may even save you a little time by allowing you to focus on the bullet points. By the end of the 23 lessons you'll have covered everything from saving for college and controlling debt to estate planning, various insurance issues, and 401(k)s.</p> <h2>3. Principles of Microeconomics (MIT Open Courseware)</h2> <p>The <a href="http://ocw.mit.edu/courses/economics/14-01-principles-of-microeconomics-fall-2007/">course</a> is actually based off of a textbook that you'll need to <a href="http://www.amazon.com/gp/product/0130084611/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0130084611&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=EPV66FSPHDGMHUEU">buy on Amazon</a> (plenty of used copies for one penny), but the lecture notes, assignments, and course material are all available for download free of charge. The course is taught by a number of different professors and teaching assistants and covers the basics of supply and demand, market demand, pricing points, and monopolies, as well as a range of tax and government related topics.</p> <h2>4. Financial Markets Econ 252 From Yale University</h2> <p>Taught by author and Professor Robert Shiller, <a href="http://oyc.yale.edu/economics/econ-252-08">Econ 252</a> covers the theory of finance, basic economic institutions, markets, and what we can expect them to look like in the future. Learning about the economic underpinnings of your personal finances can give you a more comprehensive understanding about how your money works and how it's impacted by the broader economic picture. Coursework is available for <a href="http://openmedia.yale.edu/cgi-bin/open_yale/media_downloader.cgi?file=/courses/spring08/econ252/download/econ252.zip">download</a>, while video content is available via <a href="http://itunes.apple.com/us/itunes-u/financial-markets-video/id341651306">iTunes U</a> or <a href="http://www.youtube.com/playlist?list=PL8F7E2591EE283A2E&amp;feature=plcp">YouTube</a>.</p> <h2>5. Free Kindle Resources From Bob Lotich</h2> <p><a href="http://www.amazon.com/Bob-Lotich/e/B0091W9YJ6/?_encoding=UTF8&amp;camp=1789&amp;creative=390957&amp;linkCode=ur2&amp;tag=wisbre03-20&amp;linkId=JVO36I3FT22KERG2">Bob Lotich</a> is an award-winning blogger who has been writing about personal finance since 2007. He's published several books, many of which are available for free via Kindle. He focuses on getting out of debt, charitable giving, and budgeting for both personal and family life.</p> <h2>6. Family Finance From Utah State University</h2> <p><a href="http://ocw.usu.edu/Family__Consumer____Human_Development/Family_Finance/">This course</a> focuses on financial planning from a family perspective and shows you how to establish values and goals for your family, then how to customize your financial plan to reach those goals. Practical exercises are included to learn things like buying a major appliance (dishwasher, dryer, etc.), taking home inventory, buying versus leasing, and comparing credit cards.</p> <h2>7. Money Management International</h2> <p><a href="http://www.moneymanagement.org/Financial-Education.aspx">Money Management International</a> (MMI) offers a wealth of different resources for personal finance topics including frugal living, holiday spending, bankruptcy, debt, and budgeting. They also offer a series of webinars that you can take advantage of if you don't mind working around their schedule.</p> <h2>8. Planning a Secure Retirement From Purdue</h2> <p>The earlier you can start <a href="https://ag.purdue.edu/programs/areyouprepared/secureretirement/Pages/default.aspx">planning and saving for your retirement</a>, the better off you'll be when it actually happens. This course sets the simple goal of helping you plan to do that. If retirement is something that you don't understand or that just scares you, this eight-module course is the ideal way to start educating yourself.</p> <h2>9. Personal Finance From Missouri State University (iTunes U)</h2> <p>Missouri State University offers a <a href="https://itunes.apple.com/us/course/personal-finance/id549538984">full-scale personal finance course</a> via iTunes U that's presented in a video format. There are eight classes, ranging in time from 20 to 40 minutes and covering the basics of personal finance. It's a good generalized course that covers the basics of goal-setting, budgeting, credit, insurance, and even the time value of money.</p> <h2>10. Finance and Capital Markets from Khanacademy</h2> <p><a href="https://www.khanacademy.org/economics-finance-domain/core-finance">Khanacademy</a> provides high-level information, which means they're going to cover functionality and broad concepts before they'll get down into the details. However, when it comes to personal finance, that kind of information is tremendously valuable. Khan's site provides it in four different categories; microeconomics, entrepreneurship, finances and capital markets, and macroeconomics. Each module is broken up into their own categories with somewhere between 10 to 20 lessons for each one.</p> <h2>No Reason Not to Learn</h2> <p>We have less reason than any other generation to be misinformed when it comes to our money and our personal finances. Yet it seems we may just be one of the worst when it comes to managing our assets.</p> <p>With so much material available to us, we should be rushing to take advantage of it. Because knowledge (particularly in this area) has a way of improving the quality of life. When it comes to our money, the more we know, the better off we'll be.</p> <p><em>What are some free personal finance courses that you've found to be helpful? Let me know in the comments section below.</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/10-places-to-get-free-personal-finance-classes">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-11"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-creative-uses-for-a-529-plan">5 Creative Uses for a 529 Plan</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-personal-finance-books-you-should-read">6 Personal Finance Books You Should Read</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/21-things-that-young-adults-absolutely-need-to-know-about-money">21 Things That Young Adults Absolutely Need to Know About Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/100-ways-to-save-money-in-college">100 Ways to Save Money in College</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-leave-college-without-making-these-5-moves-for-financial-success">Don&#039;t Leave College Without Making These 5 Moves for Financial Success</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Education & Training education money lessons personal finance classes personal finance education Tue, 29 Jul 2014 23:00:06 +0000 Mikey Rox 1166922 at http://www.wisebread.com Zooey Deschanel Never Pays Late Fees and 5 Other Smart Money Lessons From Celebrities http://www.wisebread.com/zooey-deschanel-never-pays-late-fees-and-5-other-smart-money-lessons-from-celebrities <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/zooey-deschanel-never-pays-late-fees-and-5-other-smart-money-lessons-from-celebrities" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/celebrity-57283707-small.jpg" alt="celebrity" title="celebrity" class="imagecache imagecache-250w" width="250" height="149" /></a> </div> </div> </div> <p>When you're Angelina Jolie and have Brad Pitt by your side, you can make anything look good.</p> <p>That's why Angelina spent a measly <a href="http://www.today.com/id/19215552/ns/today-today_entertainment/t/angelina-jolie-wears-outfit-premiere/#.U79OqxZ9LWo">$26 on a velvet dress</a> at a thrift shop for a major movie premiere. She is a good example of taking charge of your finances: while raking in the big bucks as the face of an American fashion brand, St John, she saved by dropping tags at the thrift shop. (See also: <a href="http://www.wisebread.com/the-surprisingly-frugal-lifestyles-of-12-famous-superheroes?ref=seealso">The Surprisingly Frugal Lifestyles of 12 Famous Superheroes</a>)</p> <p>So crank up the <a href="https://www.youtube.com/watch?v=QK8mJJJvaes">Macklemore and Ryan Lewis</a>, and let's learn some smart money lessons from six of our favorite celebrities.</p> <h2>1. Winona Ryder</h2> <p>If you think that a $26 dress is cheap, wait until you hear the price range for Winona Ryder. The star of <a href="http://www.amazon.com/gp/product/B001AGXEAG/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B001AGXEAG&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=FLFWNXVKPPYV7D2I">Beetlejuice</a> and <a href="http://www.amazon.com/gp/product/0679746048/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0679746048&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=46SHNOYWOSWNENCO">Girl, Interrupted</a> confesses to wearing <a href="http://www.dailymail.co.uk/tvshowbiz/article-2569347/Winona-Ryder-reveals-love-elder-peers-including-landlady-Helen-Mirren.html">$10 dresses to star-studded ceremonies</a>. But that's not at all. In an <a href="http://www.redonline.co.uk/red-women/interviews/winona-ryder">interview with Red Magazine</a> she admits that she wore the same dress from a 2005 film premiere to Sean Penn's Haiti gala in 2014. Winona wears a dress until it falls apart.</p> <p><strong>Smart Money Lesson</strong>: In her own words, &quot;I know that's kind of a no-no in the fashion world, but why wear something just once if you love it?&quot; Don't become a fashion victim and avoid buying new clothes every single season.</p> <h2>2. Zooey Deschanel</h2> <p>If you're making $9 million annually (including a cool $95,000 to $125,000 per episode of New Girl), you'd expect to get an invitation from the ultra exclusive American Express Centurion Card, aka &quot;The Black Card.&quot; Well, not Zooey Deschanel. In <a href="http://tmz.vo.llnwd.net/o28/newsdesk/tmz_documents/0104_zooey.pdf">court papers</a> from her 2012 divorce with Death Cab for Cutie frontman Ben Gibbard, the actress/musician revealed that she has three credit cards and all with zero balance. Even more, two of her cards have a maximum credit line of $2,000 and one just $1,000. With a monthly budget of $500 for dining out, Zooey must be paying all meals with cash.</p> <p><strong>Smart Money Lesson</strong>: Have a credit card for emergency uses only. If you have to use it, pay the balance in full every month.</p> <h2>3. Tobey Maguire</h2> <p>Not just the ladies are frugal. For example, take the original Mr. Spiderman. While Tobey Maguire is estimated to have a <a href="http://www.celebritynetworth.com/richest-celebrities/actors/tobey-maguire-net-worth/">net worth of $75 million</a>, he is just comfortable wearing jeans and T-shirts. Google for non-gala pictures of him and all you will see are clothes that your neighbor down the street would wear. Tobey got his frugal mentality from his rough childhood. The star of The Great Gatsby confesses that <a href="http://www.theguardian.com/film/2013/may/11/tobey-maguire-interview">his family lived on food stamps</a>, used government medical insurance, and even had to wander into shelters every now and then. This explains why he is so structured in his spending and doesn't spend in frivolities.</p> <p><strong>Smart Money Lesson</strong>: Don't live beyond your means. Tobey explains his <a href="http://books.google.com/books?id=YEdwW78QWj0C&amp;pg=PA250&amp;lpg=PA250&amp;dq=%22I+just+never+wanted+to+put+myself+in+the+position+where+my+spending+was+so+huge+that+I+had+to+keep+making+movie+after+movie%22&amp;source=bl&amp;ots=HWr-vAUsYW&amp;sig=J59lc0Tz8ZHdJAissTU427Jh4qQ&amp;hl=en&amp;sa=X&amp;ei=U2K_U_CNG8K9oQSlxIGICA&amp;ved=0CCYQ6AEwAQ#v=onepage&amp;q=%22I%20just%20never%20wanted%20to%20put%20myself%20in%20the%20position%20where%20my%20spending%20was%20so%20huge%20that%20I%20had%20to%20keep%20making%20movie%20after%20movie%22&amp;f=false">frugal philosophy</a>: &quot;I just never wanted to put myself in the position where my spending was so huge that I had to keep making movie after movie.&quot;</p> <h2>4. Mindy Kaling</h2> <p>The super funny comedienne is a great example of how to tame shopping addiction. Like plenty of people, Mindy loves to shop 'til she drops. She confesses to have even memorized her credit card number so that she can shop online anytime, anywhere up to three times a week. However, she keeps herself in check by forcing herself to return about <a href="http://www.refinery29.com/the-office-s-mindy-kaling-dishes-on-fashion-beauty-and-hollywood">75% of what she buys</a>. Also, she is a big believer in sharing clothes with her girlfriends. In her book, <a href="http://www.amazon.com/gp/product/0307886271/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0307886271&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=MLEV3BOM4LWXYLDP">Is Everyone Hanging Without with Me?</a>, she insists that best friends can borrow from each other anything in their closet, no matter how fancy. (See also: <a href="http://www.wisebread.com/the-greatest-frugal-fashion-makeover-ever-refresh-your-wardrobe-for-25-or-less">Refresh Your Wardrobe for $25 or Less</a>)</p> <p><strong>Smart Money Lesson</strong>: If you have a shopping habit, kick it by returning clothes as much as possible and sharing cool clothes with your friends.</p> <h2>5. Kristen Bell</h2> <p>If somebody has the highest probability of leaving Hollywood and becoming the next host of <a href="http://www.tlc.com/tv-shows/extreme-couponing">Extreme Couponing</a>, that has got to be actress Kristen Bell. On an <a href="http://teamcoco.com/video/kristen-bell-loves-bed-bath-and-beyond">interview with Conan O'Brien</a>, she reveals: &quot;I shop almost exclusively with coupons&quot;. Like most of us, Kristen is a major fan of big box retailers, especially Bed Bath &amp; Beyond and is a major fan of its 20% discount coupon. Just the thought of saving $80 on a purchase puts Kristen in an ecstatic mood!</p> <p><strong>Smart Money Lesson</strong>: Whenever you need to shop, first look for coupons to maximize your savings.</p> <h2>6. Vincent Kartheiser</h2> <p>Another famous male celebrity is mindful of living on a budget is Vincent Kartheiser. Even though he plays an upper class slick ad salesman in <a href="http://www.amazon.com/gp/product/B000YABIQ6/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B000YABIQ6&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=QIEST5HAVBXCYZGI">Mad Men</a>, Vincent is one of the 10% of Angelenos that relies only on public transportation. Yup, this big time actor doesn't own a car. He believes using <a href="http://www.nytimes.com/2010/10/03/fashion/03With.html">public transportation is wonderful</a>. &quot;Instead of driving and being stressed out about traffic, you can work your scene, you can do your exercises or whatever on the bus. Everyone's got their own deal.&quot; Vincent is not alone: the <a href="http://www.huffingtonpost.com/2014/05/31/american-driving-car-decl_n_5424867.html">average American household now owns fewer cars</a>, returning to the levels of the early 1990s.</p> <p><strong>Smart Money Lesson</strong>: Consider consolidating into a single car and increasing your use of public transportation. You'll save on gas, create an opportunity to relax, and reduce your carbon footprint.</p> <p><em>Any thrifty celebrities I've missed? Please share in comments!</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/zooey-deschanel-never-pays-late-fees-and-5-other-smart-money-lessons-from-celebrities">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-12"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/debit-or-credit-which-one-should-you-choose-at-the-checkout">Debit Or Credit? Which One Should You Choose At The Checkout?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/50-great-things-to-do-with-50">50 Great Things to Do With $50</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/14-pricey-things-you-shouldnt-buy-and-what-to-get-instead">14 Pricey Things You Shouldn&#039;t Buy (And What to Get Instead)</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/save-100s-next-month-with-these-10-grocery-shopping-tips">Save $100s Next Month With These 10 Grocery Shopping Tips</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-simple-ways-to-stop-impulse-buying">9 Simple Ways to Stop Impulse Buying</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting Shopping famous thrifty people frugal celebrities money lessons Mon, 21 Jul 2014 11:00:03 +0000 Damian Davila 1161549 at http://www.wisebread.com 12 Ways Kids Can Teach Us About Money http://www.wisebread.com/12-ways-kids-can-teach-us-about-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/12-ways-kids-can-teach-us-about-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mom-daughter-money-156796282-small.jpg" alt="family money" title="family money" class="imagecache imagecache-250w" width="250" height="156" /></a> </div> </div> </div> <p style="margin-left: 40px;">&quot;If someone gave me $10, I would buy a toy from the movie Frozen,&quot; recently said one of my favorite 8-year-olds.</p> <p style="margin-left: 40px;">&quot;What if the store didn't have the one you wanted?&quot; asked his mom.</p> <p style="margin-left: 40px;">&quot;Then I would save my money.&quot;</p> <p>With their untarnished idealism and often very pragmatic ways of thinking, kids can teach us a lot about life &mdash; and about money.</p> <h2>1. There Is Magic in a Single Dollar Bill</h2> <p>From early on, we learn that it's fun to get money. Holding a dollar bill means we get to buy a dollar's worth of <em>something</em>. Sometimes a little treat &mdash; like candy &mdash; brings a lot of excitement. Take a kid into a bulk candy store with a dollar bill in hand, and watch the magic come alive.</p> <p>At any age, no matter the dollar amount, money translates into buying power and the ability to make choices. As adults, we can reclaim that same child-like excitement when someone gives us a $10 Starbucks gift card. It's not that the $10 will make or break our wallets, but the fact that it's a gift often adds a little magic to the coffee and scone we choose to buy with that gift card.</p> <h2>2. What You Buy Is More Important Than Where You Buy</h2> <p>Do you remember how beautiful you felt when you wore your hot pink, bedazzled T-shirt to the first day of 2nd grade? Chances are, you didn't really care whether it came from a thrift shop, a discount store, or an upscale retailer. Kids generally care about what they are wearing or receiving as a gift than where it was purchased. Many adults reverse the emphasis.</p> <h2>3. Special Purchases Are Worth the Wait</h2> <p>When a child sees a commercial for a certain doll/truck/game, that's the one they want. Kids usually have to wait if a store is out of that specific item &mdash; especially if they &quot;<em>really, really, really&quot;</em> want it. After they've seen it &mdash; at a friend's house, at school or on TV &mdash; they understand that they need to wait for an adult to first approve the purchase, and later take them to a store to make the purchase. The anticipation builds, and that makes buying (and having) it that much more satisfying.</p> <p>Adults can experience that same gratification as a result of anticipating a purchase, whether it's a new car or a new pair of sunglasses. Don't settle for what might be readily available; take a lesson from the kids and wait for the item that you <em>really, really, really</em> want.</p> <h2>4. Saving Is Fun!</h2> <p>Many parents teach their children to save money by incentivizing the process, or making it a fun challenge. Beth Kobliner, author of <a href="http://www.amazon.com/gp/product/0743264363/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0743264363&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=CLU3ARSMMUCO42EC">Get a Financial Life</a>, says that &quot;children as young as three years old can grasp financial concepts like saving and spending.&quot; She offers the following suggestion to help make saving fun: Have a child set a realistic savings goal to buy a specific item. &quot;Every time your child adds money to the savings jar, help her count up how much she has, talk with her about how much she needs to reach her goal, and when she will reach it.&quot;</p> <p>That same activity could be very gratifying for adults as we save up for big-ticket items or even small indulgences.</p> <h2>5. Money Is Finite</h2> <p>By pre-school, kids have an understanding that money doesn't grow on trees, but many still assume that it is somehow always available to grownups thanks to <a href="http://www.dailymotion.com/video/x144h7f_our-panel-of-kids-share-their-money-thoughts_people">banks, ATMs, and &quot;factories</a>.&quot;</p> <p>Still, when a child holds a $10 bill at a toy store, he knows that a $12 purchase isn't possible. As adults, with wallets full of plastic money, we sometimes forget that concept; hence the <a href="http://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/">average U.S. household credit card debt</a> stands at over $15,000. The concept of &quot;buy now, pay later&quot; can land many adults in perilous waters. (See <a href="http://www.wisebread.com/what-is-your-financial-kryptonite-and-how-to-conquer-it?ref=seealso">What Is Your Financial Kryptonite &mdash; and How to Conquer It</a>)</p> <h2>6. Make Wise Choices</h2> <p>What might present itself as an agonizing decision over choosing the Matchbox sports car or fire truck can turn into excitement once the decision has been made. But it might take a lot of hemming and hawing that we can't understand (&quot;It's just a $2 toy car!&quot;).</p> <p>As much as we may like them, in some ways, liberal return policies have made us lazier consumers as adults. Kids tend to stay truer to their purchases; as such, they often make more contemplative decisions. Not a bad practice!</p> <p>At the same time, kids can teach us that it's okay to make a financial mistake. Kids rarely beat themselves up if they make a bad purchase. They tend to look to the next &quot;buying opportunity&quot; right away rather than wallow in buyer's remorse, as adults sometimes do.</p> <p>The good news: As adults, capable of higher level thinking &mdash; and making higher priced mistakes &mdash; we can take steps to avoid buyer's remorse. According to Kelly Kiyeon Lee, co-author of a report in the Journal of Consumer Research, one way to avoid is to take the time to really think about the value of the product, including short-term and long-term benefits, she says. Another is to learn from past mistakes, especially high-ticket impulse purchases.</p> <h2>7. Big Isn't Always Better</h2> <p>Kids can find the joy in a &quot;cool&quot; passageway in a tiny house, or lighted cup holders in an economy car. Sometimes, we grown-ups forget that magic, and focus on the price tag as an indicator of what's &quot;better,&quot; particularly when it comes to houses, cars or other big-ticket items. The problem is that reality limits our budgets, so while a $750,000 home may have more &quot;wow&quot; appeal, we can find the joy in the $250,000 home &mdash; or an $800/month apartment &mdash; if we open our minds to it.</p> <h2>8. Impulse &quot;Wants&quot; Are Inevitable; Impulse &quot;Buys&quot; Are Not</h2> <p>Speaking of impulse purchases, if you've ever had an &quot;assistant&quot; accompany you to the grocery store, you know that temptations lurk in certain aisles (think cereal, snack, cookie &hellip;) and other strategic locations throughout the store. End caps and checkout lanes can be present particularly brutal challenges. Fortunately, as the wallet-holding adult, you can moderate their impulse wants, and put the kibosh on the impulse buys. As grown-ups, we often need to remind ourselves to listen to the &quot;adult moderator&quot; in our brain telling us we don't really need that purse &mdash; even if it is super cute.</p> <h2>9. Money Can Help People</h2> <p>Whether it's donating a portion of their allowance to the church collection basket or contributing to a specific cause, kids learn from an early age that altruism feels good, and that if a lot of people chip in a little bit, great things can happen &mdash; towns hit by natural disasters can be rebuilt, cures for diseases can be researched, and other good causes can benefit from contributions, however small. It is their collective power that packs the punch &mdash; and can make a difference in one or many lives. And that feels good. (See also: <a href="http://www.wisebread.com/surprisingly-easy-ways-you-can-support-charity?ref=seealso">Surprisingly Easy Ways You Can Support a Charity</a>)</p> <h2>10. Free Is Fun!</h2> <p>Going to the ice cream shop on &quot;free cone day&quot; gives kids a thrill, even though, in most cases, ice cream is always &quot;free&quot; to them if Mom or Dad pays. Long line? No problem &mdash; the ice cream cone is free!!</p> <p>When the cosmetic rep offers you a free fragrance sample, why not take one? Free gift with purchase &hellip; free samples at the warehouse store? Sure! Last week I called Under Armour customer service to inquire about a replacement strap on a gym bag. When they offered to send one to me &mdash; for free! &mdash; I felt like it was gold.</p> <h2>11. Money Can Be Negotiated</h2> <p>In fact, financial negotiations can start at a young age for many kids. &quot;If I do more, can I earn more?&quot; &quot;When I turn 12, will you increase my allowance?&quot; Even requests for a special pair of soccer shorts can be turned into negotiation, wherein kids have to make a compelling argument to the parent whose reflexive response is &quot;no.&quot;</p> <p>In a recent CNN Money article debating the pros and cons of giving kids an allowance, Jayne Pearl, author of <a href="http://www.amazon.com/gp/product/1576600645/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=1576600645&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=AXZMNXJ7T5I3LE2R">Kids and Money: Giving Them the Savvy to Succeed Financially</a> asserts the importance of an <a href="http://money.cnn.com/magazines/moneymag/money101/lesson12/index2.htm">allowance as a teaching tool</a>. &quot;Negotiation skills are an important part of that [learning], which they're going to need for dealing effectively with friends, teachers and, eventually, their bosses,&quot; she says.</p> <p>Those basic negotiation skills can help us get the best price on a car, house, a dining room set at an estate sale, and at other points of sale where bargaining is appropriate. They also come in handy when accepting a job offer, asking for a raise, or making joint financial decisions with our spouses.</p> <h2>12. Money Does Not Equal Worth</h2> <p>Most kids don't make a connection between success and money. Sure, most have seen enough TV to assume that a lot of famous athletes, singers, and actors are &quot;rich&quot; and therefore live in lavish houses and drive fancy cars. But their favorite teacher may be the lowest on the school's pay scale, and their best friend may live on the &quot;other side of the tracks.&quot; Most kids don't notice, care, or take stock of others' net worth.</p> <p>What a great reminder for us adults.</p> <p><em>Have your children taught you any lessons about money? Please share in comments!</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mardee-handler">Mardee Handler</a> of <a href="http://www.wisebread.com/12-ways-kids-can-teach-us-about-money">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-13"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-by-kindergarten">5 Financial Lessons Everyone Should Learn by Kindergarten</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-places-teens-and-adults-can-learn-about-money">7 Places Teens (and Adults) Can Learn About Money</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-financially-educate-your-children">How to Financially Educate Your Children</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-you-know-these-5-financial-lessons-most-people-learn-in-their-40s">Do You Know These 5 Financial Lessons Most People Learn in Their 40s?</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/money-mistakes-two-popular-board-games-teach-kids">Money Mistakes Two Popular Board Games Teach Kids</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance children and money financial education money lessons Thu, 17 Jul 2014 13:00:03 +0000 Mardee Handler 1160247 at http://www.wisebread.com 6 Personal Finance Books You Should Read http://www.wisebread.com/6-personal-finance-books-you-should-read <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-personal-finance-books-you-should-read" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/bookstore-452406305-small.jpg" alt="bookstore" title="bookstore" class="imagecache imagecache-250w" width="250" height="142" /></a> </div> </div> </div> <p>Trawl Amazon or the shelves of any bookstore and you will find a myriad of options when it comes to personal finance. It can be difficult to distinguish between them. Here's a list of six top-notch personal finance reads that make the cut. (See also: <a href="http://www.wisebread.com/17-more-places-to-buy-sell-and-trade-books?ref=seealso">17 Places to Buy, Sell, and Trade Books</a>)</p> <h2>1. Why Didn't They Teach Me This in School? Personal Money Management Principles to Live By</h2> <p>The author wrote this book for his five children when he realized that personal finance skills weren't being taught in high school, college, or MBA programs. When he looked for books on the subject to give to his kids, what he found were boring and lengthy reads that would never hold their attention. <a href="http://www.amazon.com/gp/product/B00C5UM9MA/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B00C5UM9MA&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=INT3OMWNQXOL4KKU">Personal Money Management Principles to Live By</a> fills that niche with 99 practical, actionable, memorable, and thoughtful principles.</p> <h2>2. The Money Book for the Young, Fabulous, and Broke</h2> <p>I bought and read <a href="http://www.amazon.com/gp/product/B000PC71Q4/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B000PC71Q4&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=XUM55DVFZZQFOMQU">The Money Book for the Young, Fabulous, and Broke</a> when I graduated from my MBA program and was $100,000 in debt at the height of the most recent recession. I didn't know where to start to begin tackling my financial goals from my existing financial situation. Suze Orman provides a step-by-step guide in this book and on the accompanying website that helped me get on the path to financial freedom. I don't know what I would have done without this one!</p> <h2>3. Your Money: The Missing Manual</h2> <p>J.D. Roth was deep in debt and his financial life was in shambles. He made a personal commitment to learn everything he could about personal finance and turn around his life, personally and financially. He started the popular blog <a href="http://www.getrichslowly.org/">Get Rich Slowly</a> to share everything he was learning. In the process, he became an accidental personal finance expert. In <a href="http://www.amazon.com/gp/product/B003QMLBR0/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B003QMLBR0&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=F5A3NRCWSAXOSW4H">Your Money: The Missing Manual</a> he shares all of the missing links that he learned that led him out of financial ruin and into financial success.</p> <h2>4. Get a Financial Life: Personal Finance in Your Twenties and Thirties</h2> <p>Beth Kobliner offers smart financial advice to help people get started on the path to personal financial stability. From insurance to saving to taxes to investing to protecting yourself from identity theft, <a href="http://www.amazon.com/gp/product/B001UP63MS/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B001UP63MS&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=AFQPWPNAEQKB5OOF">Get a Financial Life</a> is an excellent, well-rounded guide. Though written for those in their 20s and 30s, anyone at any age would benefit from its advice.</p> <h2>5. Personal Finance Simplified: The Step-by-Step Guide for Smart Money Management</h2> <p><a href="http://www.amazon.com/gp/product/B00IMQG9XQ/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B00IMQG9XQ&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=7IDFWMHFNTRLMA4H">Personal Finance Simplified</a> is a solid read for anyone at any phase of life because it takes you through personal financial decisions to make from graduating college, to changing careers, to growing your family, to retirement. It really gets at the idea of why taking action now is so critical for our futures. It includes tips on budgeting, spending, saving, and debt payments, paying taxes, and building equity.</p> <h2>6. Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics</h2> <p>We all have blind spots, and that's especially true when it comes to money. In <a href="http://www.amazon.com/gp/product/1439163367/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=1439163367&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=7CCOP7SSOOVSRNQ2">Why Smart People Make Big Money Mistakes</a>, authors Gary Belsky and Thomas Gilovich help us understand who we are and why we spend, save, borrow, invest, and waste money. They show us why money makes us behave irrationally, and then they provide us with strategies and tactics to help us make strong financial choices.</p> <p>Knowledge is power, and that's especially true when it comes to your finances. These six books will help you understand money so that you feel empowered to make the best personal financial choices to live the life you want to live.</p> <p><em>Do you have any favorite personal finance books? Please share in comments!</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christa-avampato">Christa Avampato</a> of <a href="http://www.wisebread.com/6-personal-finance-books-you-should-read">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-14"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-places-to-get-free-personal-finance-classes">10 Places to Get Free Personal Finance Classes</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-8-classic-personal-finance-books-you-must-read">The 8 Classic Personal Finance Books You Must Read</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/21-things-that-young-adults-absolutely-need-to-know-about-money">21 Things That Young Adults Absolutely Need to Know About Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-in-their-30s-did-you">5 Financial Lessons Everyone Should Learn in Their 30s (Did You?)</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-most-important-financial-lessons-people-learn-in-their-20s-did-you">The 5 Most Important Financial Lessons People Learn in Their 20s (Did You?)</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance books education finance books money lessons Tue, 15 Jul 2014 13:00:04 +0000 Christa Avampato 1157885 at http://www.wisebread.com 5 Financial Lessons Everyone Should Learn in Their 30s (Did You?) http://www.wisebread.com/5-financial-lessons-everyone-should-learn-in-their-30s-did-you <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-financial-lessons-everyone-should-learn-in-their-30s-did-you" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/couple-buying-house-483508949-small.jpg" alt="couple buying house" title="couple buying house" class="imagecache imagecache-250w" width="250" height="151" /></a> </div> </div> </div> <p>Regardless of our chosen life path, there are certain financial benchmarks, lessons, and practices along the way that allow us to make the most of what we have and, hopefully, to get ahead. Here are six financial lessons everyone should learn and practice in their 30s. (See also: <a href="http://www.wisebread.com/the-5-most-important-financial-lessons-people-learn-in-their-20s-did-you?ref=seealso">The 5 Most Important Lessons People Learn in Their 20s</a>)</p> <h2>A Preface on Lifestyle Design</h2> <p>We're generally expected to follow a certain life path &mdash; you know the deal: go to school, get a good job, get married, buy a house, pop out 1.5 kids, etc. And although the lessons below apply to this lifestyle template, they can be moulded to your own unique situation. For example &mdash; because of the financial lessons I applied in my 20s, plus the financial lessons below, I had the financial freedom to redesign my life, sell everything, and <a href="http://www.wisebread.com/how-to-travel-full-time-for-17000-a-year-or-less">travel the world full-time</a> at the age of 30. So take a broad view of these financial lessons and see how they best suit your own lifestyle designs.</p> <h2>1. Don't Rush Into Buying a House</h2> <p>I used to work as a financial planner, and one of the biggest mistakes I've seen clients (and friends) make is rush into buying property because they're convinced that every month they pay rent, they're throwing money away. So they buy a house with little to no money as a down payment, before realizing that the cost of owning and maintaining property is considerably more than paying rent &mdash; especially after their paltry down payment.</p> <p>One client of mine in her 30s realized her blunder when she lost her house because she got laid off and had no financial reserve (as she had sunk everything &mdash; which wasn't much &mdash; into her house).</p> <p>If you want to buy a house, save aggressively for a down payment. This will reduce your mortgage payments, insulate you against interest rate hikes, and give you a jump start on building equity. And saving for a down payment is a great exercise even if you don't end up buying a house; this money could be used to start a business, pay for additional education, or even <a href="http://www.creditwalk.ca/dear-nora-much-money-need-travel-long-term/">fund long-term travel</a> aspirations).</p> <h2>2. Budget for Having Kids &mdash; But Don't Forget About Retirement</h2> <p>When I was a financial planner, I watched new parents &quot;temporarily&quot; stop saving for retirement when they had kids, only to resume their savings when it was essentially too late (remember that lesson about compound growth you learned in your 20s? It's still very important in your 30s). Other parents simply didn't realize the cost of having kids, or overspent on unnecessary parenting items and baby gear that sunk them into consumer debt. Let's not even talk about the cost of childcare, and later on, higher education. (See also: <a href="http://www.wisebread.com/can-you-afford-to-have-a-baby?ref=seealso">Can You Afford to Have a Baby?</a>)</p> <p>Having kids costs money; make sure you've got a budget for it.</p> <p>And as long as you're having kids, it's good to have a plan to help them financially get ahead in life. Include them in your financial journey, and set milestones for their own financial education that foster comfort and confidence with money. (See also: <a href="http://www.wisebread.com/how-to-financially-educate-your-children?ref=seealso">How to Financially Educate Your Children</a>).</p> <h2>3. Use Financial Experts to Get Ahead</h2> <p>With any luck, you already aligned yourself with a <a href="http://www.wisebread.com/9-signs-you-need-to-fire-your-financial-planner">financial planner</a> in your 20s and sorted out your insurance needs, but this isn't a one-time exercise. Perform semi-annual financial reviews and periodically reevaluate your insurance needs. And don't try to reinvent the wheel yourself. Team up with financial experts who know their stuff and can advise you accordingly. In your 30s you already have enough on your plate; growing businesses outsource and hire employees to get ahead &mdash; your growing finances require a similar strategy.</p> <h2>4. Go Into Debt Within Your Means</h2> <p>In your 20s, you (hopefully) learned the difference between good debt and bad debt. Regardless of the kind of debt you get into, it's important that you do it within your means, so that you can continue to make payments even if life throws you a curve ball or two.</p> <p>A prime example of how people in their 30s overextend their debt capabilities is in buying property that they can't afford. Banks calculate the mortgage they'll lend you based on a simple equation that doesn't account for your other expenses and obligations. Some people get the biggest house the bank will allow them, before understanding all the other costs of owning property (like taxes, maintenance, repairs, utilities, etc), and they then realize that they're in over their heads. One unexpected financial blow can send this house of cards down.</p> <p>The higher your debt, the fewer options you have, but sometimes taking on that debt is still worthwhile. Ask yourself how your debt will help you, and how it could possibly hinder you.</p> <h2>5. Income Is Just a Number &mdash; Work With What You Have</h2> <p>My first year in the financial planning business netted me $15,000 in income. Six years later I was earning over six figures. I spent those years along the way thinking life would be easy once I hit six figures.</p> <p>It wasn't.</p> <p>In fact, I found that the higher my income was, the higher my expenses were &mdash; but I couldn't explain where the money was going. I simply didn't have the financial cushioning I expected to have with a six-figure income.</p> <p>I made two mistakes that put me behind financially.</p> <p>The first was that I got caught up in the spending curve that came with earning a higher income. I bought more expensive suits. My Honda Civic was no longer the image I &quot;needed&quot; to portray, so I got a nicer car. I took restaurant meals for granted. And my business expenses outlaid to earn more money were considerably higher (such as the need to hire employees). It stands to reason that you spend more money to make more money, but you can get ahead if you're conscious of how you spend it, instead of allowing yourself to get caught up in the whirlwind.</p> <p>The second mistake I made was to arbitrarily attach value to an income figure &mdash; for example &quot;six figures.&quot; Randomly setting that bar without truly understanding how it would make my life better made my eventual achievement of it an anticlimactic disappointment. It's not how much money you make &mdash; it's how you use it to empower your life. (See also: <a href="http://www.wisebread.com/a-lot-of-people-dont-understand-what-money-really-is-do-you">A Lot of People Don't Really Understand What Money Is &ndash; Do You?</a>)</p> <h2>If You Didn't Learn It in Your 20s, There's Still Time</h2> <p>Concepts like compound growth and getting insurance while you're young and healthy still work in your favor when you're in your 30s. Take a minute and brush up on the <a href="http://www.wisebread.com/the-5-most-important-financial-lessons-people-learn-in-their-20s-did-you">financial lessons for people in their 20s</a> to make sure you're ahead of the curve.</p> <p><em>What financial lessons did you learn (or re learning or hope to learn) in your 30s? Please share in comments!</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nora-dunn">Nora Dunn</a> of <a href="http://www.wisebread.com/5-financial-lessons-everyone-should-learn-in-their-30s-did-you">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-15"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-most-important-financial-lessons-people-learn-in-their-20s-did-you">The 5 Most Important Financial Lessons People Learn in Their 20s (Did You?)</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-things-play-teaches-you-about-personal-finance">5 Things Play Teaches You About Personal Finance</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-reasons-why-you-dont-have-financial-common-sense-and-how-to-get-it">4 Reasons Why You Don&#039;t Have Financial Common Sense (and How to Get It)</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-you-know-these-5-financial-lessons-most-people-learn-in-their-40s">Do You Know These 5 Financial Lessons Most People Learn in Their 40s?</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-financial-lessons-from-breaking-bad">7 Financial Lessons From Breaking Bad</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance 30s financial lessons money lessons Wed, 09 Jul 2014 13:00:04 +0000 Nora Dunn 1154563 at http://www.wisebread.com