investing http://www.wisebread.com/taxonomy/term/285/all en-US 6 Smart Financial Gifts to Give Your Kids This Year http://www.wisebread.com/6-smart-financial-gifts-to-give-your-kids-this-year <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-smart-financial-gifts-to-give-your-kids-this-year" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mother_and_daughter_with_piggy_bank.jpg" alt="Mother and daughter with piggy bank" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>American poet Maya Angelou said it best: &quot;When you know better, you do better.&quot; The earlier that your kids develop good financial habits, the brighter their financial future will be.</p> <p>With the holidays right around the corner, now is the perfect time to set your sights on one or more of these financial gifts that will help your kids learn about, respect, and appreciate money.</p> <h2>1. Monopoly</h2> <p>Since 1935, this classic board game has entertained millions of people around the world. Turns out that playing rounds with &quot;Monopoly money&quot; can actually help build real life financial skills, such as negotiation, money management, and diversification. Plus, a round of Monopoly is a good way to practice arithmetic and social skills. (See also: <a href="http://www.wisebread.com/holiday-gifts-6-fun-games-that-teach-money-and-finance?ref=seealso" target="_blank">Holiday Gifts: TK Fun Games That Teach Money and Finance</a>)</p> <h2>2. Custodial investment account</h2> <p>Most brokerage firms offer a custodial account that allows children to get a first taste of investing in the stock market under the supervision of a parent or guardian. With as little as $100, you could open a custodial account and let your kid make decisions about what stocks to hold or sell.</p> <p>In 2017, you can contribute up to $14,000 to a custodial account and still avoid gift taxes. In 2018, the annual federal gift exclusion moves up to $15,000. Your kid's custodial account is under your control until your kid legally becomes an adult, which happens somewhere between age 18 and 21, depending on your state's rules.</p> <p>A custodial investment account is a great way to get your child excited about investing and let them learn from firsthand experience how the stock market works. (See also: <a href="http://www.wisebread.com/5-stocks-your-kids-would-love-to-own?ref=seealso" target="_blank">5 Stocks Your Kids Would Love to Own</a>).</p> <h2>3. Custodial Roth IRA</h2> <p>If your kid is already working a summer job or earning income from their own business, consider setting up a custodial Roth IRA for them. In 2017 and 2018, individuals may contribute up to $5,500 to a custodial Roth IRA. Here are a couple of reasons why this is a good idea:</p> <ul> <li> <p>Your child will have the same contribution limit as an adult, making it a real-life lesson in cultivating a good savings habit.</p> </li> <li> <p>Your child can get close to a decade of extra compounding interest for their nest egg.</p> </li> <li> <p>By taking the tax hit now, your child's retirement savings will grow tax-free forever.</p> </li> <li> <p>Your child will have another &quot;sandbox&quot; in which to make real-life decisions with investments.</p> </li> </ul> <p>Just imagine if <em>you </em>knew how life-changing investing in equities could be at such a young age.</p> <p>That alone may be the best financial gift for your kid this holiday season! (See also: <a href="http://www.wisebread.com/10-investing-lessons-you-must-teach-your-kids?ref=seealso" target="_blank">10 Investing Lessons You Must Teach Your Kids</a>)</p> <h2>4. 529 savings plan</h2> <p>The average class of 2016 graduate left school with $37,172 in student loan debt. If you could do something now to help prevent your kid from having to take out such costly student loans, that would certainly be a gift worth giving. The good news is you <em>can</em> do this by starting a 529 college savings plan. Eligible education expenses under a 529 plan go beyond tuition and academic fees and include expenses for room and board, transportation, equipment, and accommodations for individuals with special needs.</p> <p>Contributions to a 529 plan grow tax-free and the money is not taxed when it's withdrawn to pay for college expenses. In addition to federal tax savings, more than 30 states currently offer a full or partial tax deduction or credit for 529 plan contributions. (See also: <a href="http://www.wisebread.com/the-9-best-state-529-college-savings-plans?ref=seealso" target="_blank">The 9 Best State 529 College Savings Plans</a>)</p> <h2>5. Cash</h2> <p>Yup, cash is still king. Regardless of their age, your kid will always love receiving a few bills as a gift. The main reason to gift cash during the holiday season is that it opens the door to have an ongoing conversation with your kids about budgeting. With a cash gift, you'll have plenty of chances to talk about what they're planning to buy, what they actually purchase, and how much money they have left. From there, you can start making it a habit to sit down with your son or daughter to talk about finances on a weekly or Bi-Weekly basis. It's a good time to catch up about other non-related finance topics as well. (See also: <a href="http://www.wisebread.com/how-to-help-your-kid-build-their-first-budget?ref=seealso" target="_blank">How to Help Your Kid Build Their First Budget</a>)</p> <h2>6. Checking account with debit card and checkbook</h2> <p>Of course, this would be a great place for any cash gifts that your son or daughter receives from relatives and friends during the holidays (and throughout the year).</p> <p>While a checking account may not be as exciting as a new Xbox or bike, you can be sure that this gift is the one that your child will be using for the longest time. It's important that your kids start to build experience managing a checking account so they understand how to pay for everyday expenses, build a monthly budget, and safely use debit cards. By covering the ins and outs of how a checking account works when they're young, your kid will have one less thing to stress about as they get a little older or go off to college.</p> <p>No matter what your child's plans are, anyone can benefit from learning how to use a debit card, write checks, access an online account portal, and read a checking account statement.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F6-smart-financial-gifts-to-give-your-kids-this-year&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Smart%2520Financial%2520Gifts%2520to%2520Give%2520Your%2520Kids%2520This%2520Year.jpg&amp;description=6%20Smart%20Financial%20Gifts%20to%20Give%20Your%20Kids%20This%20Year"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/6%20Smart%20Financial%20Gifts%20to%20Give%20Your%20Kids%20This%20Year.jpg" alt="6 Smart Financial Gifts to Give Your Kids This Year" width="250" height="374" /></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/6-smart-financial-gifts-to-give-your-kids-this-year">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/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids 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/teach-your-kids-about-money-with-their-holiday-gift-lists">Teach Your Kids About Money With Their Holiday Gift Lists</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/holiday-gifts-6-fun-games-that-teach-money-and-finance">Holiday Gifts: 6 Fun Games That Teach Money and Finance</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/7-money-conversations-parents-should-have-with-their-adult-kids">7 Money Conversations Parents Should Have With Their Adult 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/how-to-prepare-your-kids-to-live-on-their-own">How to Prepare Your Kids to Live On Their Own</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family 529 plans budgeting cash checking accounts children Christmas custodial roth ira financial gifts games Holidays investing kids Fri, 01 Dec 2017 09:00:06 +0000 Damian Davila 2064624 at http://www.wisebread.com 6 Ways Meeting the 2018 401(k) Contribution Limits Will Brighten Your Future http://www.wisebread.com/6-ways-meeting-the-2018-401k-contribution-limits-will-brighten-your-future <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-ways-meeting-the-2018-401k-contribution-limits-will-brighten-your-future" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/piggy_bank_with_retirement_formula.jpg" alt="Piggy Bank with retirement formula" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Starting next year, investors will be allowed to contribute more money into their 401(k)s. In 2018, the limit on annual contributions to a 401(k) plan will rise from $18,000 to $18,500.</p> <p>That additional $500 may not seem like a lot, but you should try and hit the new maximum if you can. Maxing out your 401(k) is often the best way to accumulate a healthy sum for retirement, and there are great tax benefits as well.</p> <p>If you're on the fence about whether you need to direct another $500 into your 401(k), consider these arguments.</p> <h2>1. It could net you tens of thousands of dollars</h2> <p>It's not easy to contribute $18,500 annually into a retirement account. But if you can do it, that extra $500 each year can really pay off. Let's say you're 30 years old and plan to retire at age 65. Assuming a conservative 7 percent return, that extra $500 annually could mean an additional $74,000 overall. If you start contributing that extra $500 starting at age 25, and keep doing it for 40 years, the difference is $106,000 over time &mdash; more than an entire year's worth of living expenses for many people.</p> <h2>2. It's more money for you and less to taxes</h2> <p>If you have $500 in income available, that's money that the IRS will get a share of, unless you place it in a 401(k) plan or traditional IRA. Any money you contribute to these retirement accounts is deducted from your taxable income. If you are in a high tax bracket, that $500 could actually just represent about $300 in your paycheck. If Uncle Sam would take that much anyway, why not invest the whole amount instead?</p> <h2>3. You can find $42 a month</h2> <p>If you are at the maximum contribution now, you can find a way to hit the new ceiling. Eat out less. Ditch the morning coffee. Quit that gym you never go to. If you break down $500 over the course of a year, it comes out to less than $42 a month &mdash; or barely $10 a week. That's the cost of a mediocre lunch out. Even the smallest amount of belt-tightening can help you hit this goal, and it's probably not money you'll notice. But you'll notice it later at retirement time.</p> <h2>4. You may have already maxed out your IRA</h2> <p>If you've been placing money in an individual retirement account (IRA), you may be aware that contribution limits are lower than 401(k) plans. People under age 50 are permitted to contribute only $5,500 each year to an IRA, and it's not uncommon for people to hit that maximum. If your IRA is maxed out, having permission to place an additional $500 in a 401(k) is a huge bonus.</p> <h2>5. The limit might be decreased in the future</h2> <p>We should be thankful that in 2018, the 401(k) contribution limit is rising. That's because some members of Congress have suggested that the limit could be drastically reduced in the future as part of tax reform. Thankfully, it seems like discussion of such changes has been tabled, but there's no guarantee the idea won't be resurrected in the future. In the meantime, it's a good idea to contribute as much as you can.</p> <h2>6. Where else are you going to put your money?</h2> <p>If you have $500 a year to spare, the stock market may be the smartest place to put it. Interest rates are still very low, so placing it into the bank would only result in a few bucks each year. And very few other investments offer the same kinds of consistent returns as stocks. Unless you plan to use the money to purchase a home or start a business, you likely won't do much better on a consistent basis than &mdash; or get the same tax advantages of &mdash; investing in stocks in a 401(k).</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F6-ways-meeting-the-2018-401k-contribution-limits-will-brighten-your-future&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Ways%2520Meeting%2520the%25202018%2520401%2528k%2529%2520Contribution%2520Limits%2520Will%2520Brighten%2520Your%2520Future.jpg&amp;description=6%20Ways%20Meeting%20the%202018%20401(k)%20Contribution%20Limits%20Will%20Brighten%20Your%20Future"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/6%20Ways%20Meeting%20the%202018%20401%28k%29%20Contribution%20Limits%20Will%20Brighten%20Your%20Future.jpg" alt="6 Ways Meeting the 2018 401(k) Contribution Limits Will Brighten Your Future" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/6-ways-meeting-the-2018-401k-contribution-limits-will-brighten-your-future">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/3-common-retirement-regrets-you-can-avoid">3 Common Retirement Regrets You Can Avoid</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/how-to-tell-if-your-401k-is-a-good-or-a-bad-one">How to Tell if Your 401K Is a Good or a Bad One</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/should-you-choose-a-roth-401k-or-a-regular-401k">Should You Choose a Roth 401k or a Regular 401k?</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/the-only-8-rules-of-investing-you-need-to-know">The Only 8 Rules of Investing You Need to Know</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-important-things-to-know-about-your-401k-and-ira-in-2016">5 Important Things to Know About Your 401K and IRA in 2016</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment Retirement 401(k) limits government investing IRA mutual funds stocks taxes Wed, 29 Nov 2017 09:00:07 +0000 Tim Lemke 2058941 at http://www.wisebread.com First Rule of Financial Wins: Avoid Losses http://www.wisebread.com/first-rule-of-financial-wins-avoid-losses <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/first-rule-of-financial-wins-avoid-losses" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/business_financial_opportunity.jpg" alt="Business Financial Opportunity" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The task of accumulating wealth and ensuring long-term financial security is often discussed alongside the idea of winning. And while it's fine to think of financial planning this way, it may be just as important to simply <em>avoid losing</em>. Smart investing involves looking for gains over time, but also escaping costly losses when the market goes down. Let's take a look at some ways we can &quot;win&quot; financially simply by avoiding losses.</p> <h2>1. Avoid overpriced stocks</h2> <p>The last thing you want is to buy a stock and immediately see it take a dive. If you are a young investor with a long time horizon, you can usually get away with putting your money in the market at any time. But it is important for anyone to avoid buying stocks when they are overvalued and perhaps due for a correction.</p> <p>It's tempting to buy a stock if shares have been moving upward, because we all like to invest in companies that are doing well. At a certain point, however, share prices can be too high based on the company's earnings. It's important to learn the basics of how to tell if a stock is fairly valued.</p> <p>A price-to-earnings ratio is an important consideration in valuing a stock. A P/E ratio is the share price divided by earnings-per-share (EPS). A P/E of more than 25 is on the high side, though P/Es vary by industry. Take time to learn what typical P/E ratios are for the sector you're looking to invest in.</p> <p>Another rule of thumb to keep in mind: If a stock has been consistently setting new 52-week highs, it may be due for a pullback.</p> <p>If a company's share prices seem overvalued, it's wise to practice patience or look elsewhere for better value. This will decrease your likelihood of losing money on the investment.</p> <h2>2. Know when to cut your losses</h2> <p>One common piece of investing advice is to stay the course and avoid panicking when shares of stock fall. This is sensible, but it should be balanced with an awareness of when to cut your losses.</p> <p>There's a fine line between being patient and sticking with a dud investment for too long. It's OK to stick with an investment if the company's underlying financials are still strong, but if the company is seeing shrinking profit margins and revenues, or has completely lost its competitive advantage, it may be time to cut and run. In particular, hanging onto investments during major market downturns can result in massive losses that will take years to recover from. Some financial advisers suggest selling an investment if it drops more than 10 percent in a short amount of time. (See also: <a href="http://www.wisebread.com/10-signs-a-stock-is-about-to-tank?ref=seealso" target="_blank">10 Signs a Stock Is About to Tank</a>)</p> <h2>3. Be truly diversified</h2> <p>Most investors know to avoid investing in too much of one thing. Diversification of investments is a key way to avoid a big loss. But sometimes, it's possible to think you are diversified when you aren't. For example, you may think you are diversifying your portfolio by investing in both U.S. based and international stocks. But have you considered that many U.S. companies already have a huge presence internationally? And even if you think you are diversified with various investments and asset classes, many investments still perform similarly, meaning that you're not as diversified as you think.</p> <p>Financial advisers have varying thoughts on the ideal way to diversify. Of course, everyone's portfolio will differ depending on their age, risk tolerance, and projected retirement year. But the basic tenet applies: Don't be too invested in one area.</p> <h2>4. Watch out for investment fees</h2> <p>When you buy and sell stocks and other investments, you'll likely be stuck paying a variety of fees. There are transaction costs for every trade, and maintenance fees and other costs for mutual funds and ETFs. These are costs that are taken out of money you invest, so you not only lose money immediately, but lose out on its potential gains. This can add up to thousands of dollars in the long run.</p> <p>Savvy investors know how to invest well while avoiding high costs. Discount brokerages such as Fidelity and Scottrade allow you to buy and sell stocks for as little as $4.95 per trade. Mutual fund companies including Vanguard, T. Rowe Price, and others have become more cognizant of fees, and are increasingly offering funds with super-low expense ratios. (Generally speaking, it's best look for funds that charge less than 1 percent for expenses.)</p> <p>Keep your costs low when you invest, and you'll find that avoiding these &quot;losses&quot; can boost your gains.</p> <h2>5. Understand when the markets may be due for a dip</h2> <p>It's very difficult to time the stock market, and for young investors, it's a good idea to just invest as soon as you can. But it's also possible to avoid big losses by recognizing when the markets may be due for a correction. If it seems like stocks are priced too high based on their earnings, that's one bad sign. A slowdown in economic growth is another, and you should be wary of a spike in inflation and interest rates, too. It's also worth noting if companies are downgrading their earnings predictions for the upcoming quarter, as that could be a sign that business executives are pessimistic. If you recognize any or all of these signs, it may be worth waiting a while before investing too heavily.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Ffirst-rule-of-financial-wins-avoid-losses&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FFirst%2520Rule%2520of%2520Financial%2520Wins_%2520Avoid%2520Losses.jpg&amp;description=First%20Rule%20of%20Financial%20Wins%3A%20Avoid%20Losses"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/First%20Rule%20of%20Financial%20Wins_%20Avoid%20Losses.jpg" alt="First Rule of Financial Wins: Avoid Losses" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/first-rule-of-financial-wins-avoid-losses">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/15-personal-finance-rules-you-should-be-breaking">15 Personal Finance Rules You Should Be Breaking</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/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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/6-money-moves-to-make-if-your-net-worth-is-negative">6 Money Moves to Make If Your Net Worth Is Negative</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-online-forums-thatll-help-you-reach-your-financial-goals">9 Online Forums That&#039;ll Help You Reach Your Financial Goals</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance apps budgeting cutting expenses energy efficient fees insurance investing losing saving spending stocks winning Tue, 14 Nov 2017 09:31:09 +0000 Tim Lemke 2053314 at http://www.wisebread.com 3 Common Retirement Regrets You Can Avoid http://www.wisebread.com/3-common-retirement-regrets-you-can-avoid <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/3-common-retirement-regrets-you-can-avoid" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/retirement_plan_concept.jpg" alt="Retirement plan concept" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>One of the best ways to set your life on a positive course &mdash; financially and otherwise &mdash; is to find out what older people wish they had done when they were younger. Along these lines, Vanguard <a href="https://vanguardblog.com/2017/04/18/the-coulda-shoulda-woulda-behind-every-retirement-story/" target="_blank">recently asked readers</a> of its blog, &quot;If you had a do-over, what would you do differently to prepare for retirement?&quot;</p> <p>That question generated a treasure trove of advice. They covered a lot of ground, but many pertained to the following three regrets.</p> <h2>Getting started with an investing plan too late</h2> <p>This is a common lament among older people, and it's easy to see why. Numerous studies show that too many people have too little saved for their later years. According to the 2017 Retirement Confidence Survey by the Employee Benefit Research Institute, only 56 percent of American workers are saving for retirement at all. Of those with no formal retirement plan, 67 percent have less than $1,000 in savings and investments. That can spell hardship later in life.</p> <p>In the words of Vanguard readers:</p> <p>&quot;I wish someone would have taught me about the power of compounding when I was 10 instead of learning about it when I was in my early 30s.&quot;</p> <p>&quot;If I had a 'do-over,' I would have taken my financial future more seriously much sooner. I eventually learned the right lessons, but I long-courted the deadly twins &mdash; ignorance and immediate self-gratification. Thus, I forfeited my best financial friend &mdash; time. Now time is my unforgiving and fleet-footed competitor, and it is only by doing considerably more of my late-learned lessons that I am able to maintain a winded, yet hopeful, pace.&quot;</p> <h3>What to do?</h3> <p>Start investing! If that seems far easier said than done, a couple of practical steps you could take include:</p> <ol style="margin-left: 40px;"> <li> <p><a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps" target="_blank">Create a budget</a> so you can proactively plan how to best allocate your income in a way that makes room for investing, and;</p> </li> <li> <p>Set up an automatic monthly transfer from your paycheck to your workplace retirement plan or from your checking account to an IRA. (See also: <a href="http://www.wisebread.com/7-retirement-planning-steps-late-starters-must-make?ref=seealso" target="_blank">7 Retirement Planning Steps Late Starters Must Make</a>)</p> </li> </ol> <h2>Not thinking carefully about the tax implications of different retirement savings options</h2> <p>Several Vanguard readers regretted using tax-<em>deferred </em>investment vehicles such as a traditional 401(k) or IRA instead of a tax-<em>free </em>vehicle such as a Roth IRA.</p> <p>Respondents noted:</p> <p>&quot;In addition to being diversified in asset classes, I should have also been diversified in tax types &mdash; i.e., most of my funds are in a 401(k) &hellip; so now everything I withdraw is taxable.&quot;</p> <p>&quot;The mistake I made was not converting my IRA to a Roth IRA in the 1990s. I thought the taxes for the conversion were too high. The result is that we are paying a higher tax rate now because the RMD (required minimum distribution) has raised our tax bracket and has increased our Medicare premium considerably each month. It has been an expensive lesson.&quot;</p> <h3>What to do?</h3> <p>Consider a Roth IRA or 401(k). Generally speaking, a Roth works best for younger people who are in a relatively low tax bracket. However, even for older, better-paid people, consider splitting your retirement contributions between a Roth and a traditional 401(k) or IRA. (See also: <a href="http://www.wisebread.com/401k-or-ira-you-need-both?ref=seealso" target="_blank">401K or IRA? You Need Both</a>)</p> <h2>Not developing a compelling vision for retirement</h2> <p>Several readers said their retirement planning was mostly about money. They wish they had spent more time thinking about how to use their time in their later years.</p> <p>Some examples:</p> <p>&quot;The financial aspects of retirement have worked out OK. I had been planning that aspect of retirement for many, many years. What I did not anticipate or prepare for was the lack of identity in retirement. When I walked out the door on my last day of work, that was the last I saw or heard from coworkers. I had a job where I mattered and all of a sudden that stopped. Yes, the financial aspects of retirement are important, but you cannot neglect the psychological aspects of retirement.&quot;</p> <p>&quot;Don't just assume you'll enjoy relaxing after working for many years. Your job was a large part of your identity and you need to have a plan to fill that in with something else!&quot;</p> <h3>What to do?</h3> <p>Think about an issue you care about and how you might be part of the solution, whether through volunteer work or maybe even a business you start.</p> <p>In her book, <em>Life Reimagined</em>, Barbara Bradley Hagerty summarizes countless studies about how to move effectively from midlife onward. She said the research is clear: Being part of a cause that matters to you increases happiness and even extends life.</p> <p>Being intentional about avoiding these three common retiree regrets should give you greater confidence and peace of mind that you're on track toward a financially comfortable, meaningful retirement. And <em>that </em>could go a long way toward helping you dodge one other very common regret among the elderly: having spent too much time worrying.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F3-common-retirement-regrets-you-can-avoid&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F3%2520Common%2520Retirement%2520Regrets%2520You%2520Can%2520Avoid.jpg&amp;description=Goal%20Setting%3A%20Getting%20Out%20of%20Debt%20Once%20and%20For%20All"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/3%20Common%20Retirement%20Regrets%20You%20Can%20Avoid.jpg" alt="3 Common Retirement Regrets You Can Avoid" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/matt-bell">Matt Bell</a> of <a href="http://www.wisebread.com/3-common-retirement-regrets-you-can-avoid">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/6-ways-meeting-the-2018-401k-contribution-limits-will-brighten-your-future">6 Ways Meeting the 2018 401(k) Contribution Limits Will Brighten Your Future</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/half-of-americans-are-wrong-about-their-retirement-savings">Half of Americans Are Wrong About Their Retirement Savings</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/6-age-milestones-that-impact-your-retirement">6 Age Milestones That Impact Your Retirement</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/if-you-want-your-401k-to-grow-stop-doing-these-6-things">If You Want Your 401K to Grow, Stop Doing These 6 Things</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/this-is-why-you-cant-postpone-planning-for-your-retirement-and-how-to-start">This Is Why You Can&#039;t Postpone Planning for Your Retirement (And How to Start)</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement 401(k) identity crisis investing IRA late starts midlife regrets taxes Wed, 01 Nov 2017 09:00:06 +0000 Matt Bell 2040659 at http://www.wisebread.com It's So Simple: 6 Steps to a Stable Retirement http://www.wisebread.com/its-so-simple-6-steps-to-a-stable-retirement <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/its-so-simple-6-steps-to-a-stable-retirement" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/senior_couple_dancing.jpg" alt="Senior couple dancing" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you are new to personal finance, you might find yourself thinking that reaching retirement is sort of like reaching a mythical place like Hogwarts. In both cases, the process required for entry is never adequately explained &mdash; and getting there yourself feels more like fantasy than reality.</p> <p>While it's unlikely that an owl will ever arrive to welcome you to a magical school, retirement is actually attainable for each and every muggle. In fact, the rules for reaching a stable retirement are relatively simple and require absolutely no financial wizardry on your part,</p> <p>Here are the only six things you need to do to achieve a stable retirement &mdash; no magic wands required.</p> <h2>1. Always spend less than you earn</h2> <p>No matter how much you make, you need to live on less than you earn. This is the kind of so-simple-it-feels-obvious advice that many personal finance experts take for granted, but keeping your expenses below your income is the cornerstone of saving for a stable retirement. Many people assume that they need to make a certain level of income before they can afford to start saving for retirement, but that's not true. As long as you always spend less than you earn, you can always save toward your retirement.</p> <p>If you're not sure how to go about reducing your expenses so that you're no longer spending everything that comes in, start by tracking your spending. This will help you better understand where your money is going so you can cut back on unnecessary spending. (See also: <a href="http://www.wisebread.com/save-more-and-spend-less-by-increasing-your-mental-transaction-costs?ref=seealso" target="_blank">Save More and Spend Less by Increasing Your &quot;Mental Transaction Costs&quot;</a>)</p> <h2>2. Max out your retirement contributions</h2> <p>Both your employer-sponsored 401(k) and your individual retirement account (IRA) have yearly contribution limits that you should strive to meet every year. The 2017 contribution limits are $18,000 for 401(k) plans (plus an additional $6,000 in catch-up contributions if over age 50), and $5,500 for IRAs ($6,500 if over age 50). The traditional versions of these investment vehicles are tax-deferred, which means you are funding your accounts with pretax dollars. Roth 401(k) plans and IRAs are funded with money you have paid taxes on, but they, like the traditional vehicles, grow tax-free.</p> <p>Many people can't afford to meet the full contribution limit for their 401(k) plan, plus maxing out an IRA as well. However, getting as close to the maximum contribution as you can for both of these vehicles will put you well on your way to retirement stability. In addition, many employers offer a 401(k) contribution match &mdash; and not maxing out this kind of matching program is akin to leaving free money on the table. (See also: <a href="http://www.wisebread.com/how-much-should-you-have-saved-for-retirement-by-30-40-50?ref=seealso" target="_blank">How Much Should You Have Saved for Retirement by 30? 40? 50?</a>)</p> <h2>3. Work at least 35 years</h2> <p>While retiring early is a common dream among many workers, leaving the workforce before putting in 35 full years of employment could damage your bottom line in retirement. That's because your Social Security benefits are calculated using the 35 highest earning years in your career. If you have less than 35 years of work experience, the Social Security Administration uses zeros to create your benefit calculation, lowering your average earnings and your payout. If you don't have 35 years of employment history, it's a good idea to keep working to get those zeros replaced in your Social Security calculation.</p> <p>Doing whatever you can to increase your monthly benefit will make a big difference in your bottom line once you retire. The most important increase you can make is to work at least 35 years total &mdash; although waiting as long as you can to take Social Security benefits is also an important strategy for increasing your monthly Social Security check. (See also: <a href="http://www.wisebread.com/6-smart-ways-to-boost-your-social-security-payout-before-retirement?Ref=seealso" target="_blank">6 Smart Ways to Boost Your Social Security Payout Before Retirement</a>)</p> <h2>4. Avoid debt</h2> <p>We live in a society that tells us we can have it all right now and pay for it later. The problem is that we <em>will</em> indeed pay for it later &mdash; with an impoverished retirement. While it may be possible to finance the lifestyle you want with debt, you will have no money available to save for retirement or otherwise invest. In addition, the added interest expense of borrowing money to pay for your lifestyle just makes it that much more expensive and unsustainable. (See also: <a href="http://www.wisebread.com/5-ways-to-pay-off-high-interest-credit-card-debt?ref=seealso" target="_blank">5 Ways to Pay Off High Interest Credit Card Debt</a>)</p> <h2>5. Invest for the long-term with index funds</h2> <p>While the movies show investing as a kind of game that you win by figuring out when to buy low and sell high, the best way to make sure your money grows is to follow a long-term buy-and-hold strategy.</p> <p>A 2016 DALBAR study on investment behavior revealed that investors routinely underperform the market despite solid annualized returns. For example, at the end of 2015, the S&amp;P 500 was averaging a return of 8.19 percent. That same year, investors saw returns top out at a measly average 4.67 percent &mdash; and this pattern is not new. Why such a discrepancy? Simple; rather than employing a buy-and-hold strategy, investors routinely try (and fail) to time the market. Year after year, their returns suffer as a result.</p> <p>You can use statistics and a long investment term to your advantage by investing in index funds. These funds aim to replicate the movement of specific securities in a target index, which means an index fund is going to do about as well as the target securities will do. (See also: <a href="http://www.wisebread.com/want-your-investments-to-do-better-stop-watching-the-news?ref=seealso" target="_blank">Want Your Investments to Do Better? Stop Watching the News</a>)</p> <h2>6. Take care of your health</h2> <p>Your health can have an enormous impact on your financial stability in retirement. That's because health care costs are a major concern in your older years, especially since this is one aspect of your retirement budget that you may not have control over. According to a 2016 Fidelity study, a 65-year-old couple retiring in 2016 will need about $260,000 to cover their medical and health care costs for the rest of their lives.</p> <p>While kale smoothies and daily kettlebell workouts cannot ensure your good health in retirement, taking good care of yourself throughout your life does improve the odds that you'll stay healthier as you age. You can consider each jog and healthy meal as an investment in your future. (See also: <a href="http://www.wisebread.com/dont-let-poor-health-kill-your-retirement-fund?ref=seealso" target="_blank">Don't Let Poor Health Kill Your Retirement Fund</a>)</p> <h2>Reaching retirement, one step at a time</h2> <p>Achieving a stable retirement doesn't require any magic. Instead, it's a matter of following some simple rules that will ensure you have the money you need to retire comfortably.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fits-so-simple-6-steps-to-a-stable-retirement&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FIt%2527s%2520So%2520Simple_%25206%2520Steps%2520to%2520a%2520Stable%2520Retirement.jpg&amp;description=It's%20So%20Simple%3A%206%20Steps%20to%20a%20Stable%20Retirement"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/It%27s%20So%20Simple_%206%20Steps%20to%20a%20Stable%20Retirement.jpg" alt="It's So Simple: 6 Steps to a Stable Retirement" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/its-so-simple-6-steps-to-a-stable-retirement">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/8-signs-youre-making-all-the-right-moves-for-retirement">8 Signs You&#039;re Making All the Right Moves for Retirement</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-signs-your-retirement-is-on-track">8 Signs Your Retirement Is on Track</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-benefits-of-carrying-a-mortgage-into-retirement">5 Benefits of Carrying a Mortgage Into Retirement</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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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/10-reasons-an-hsa-is-actually-worth-having">10 Reasons an HSA Is Actually Worth Having</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Retirement buy and hold contributions debt health care index funds investing returns social security benefits stable retirement Tue, 31 Oct 2017 09:00:06 +0000 Emily Guy Birken 2041362 at http://www.wisebread.com 5 Benefits of Carrying a Mortgage Into Retirement http://www.wisebread.com/5-benefits-of-carrying-a-mortgage-into-retirement <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-benefits-of-carrying-a-mortgage-into-retirement" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/senior_black_couple_standing_outside_a_large_suburban_house.jpg" alt="Senior black couple standing outside a large suburban house" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The goal is a simple one: You want to enter your retirement years without monthly mortgage payments. Unfortunately, not everyone meets this goal. According to Voya Financial, 26 percent of current retirees still have an outstanding mortgage balance.</p> <p>If you're one of these retirees, don't despair. It's not ideal, but leaving the working world with monthly mortgage payments doesn't have to be a financial disaster. There are some benefits of carrying a mortgage into your retirement years. (See also: <a href="http://www.wisebread.com/why-retiring-with-debt-isnt-the-end-of-the-world?ref=seealso" target="_blank">Why Retiring With Debt Isn't the End of the World</a>)</p> <h2>1. It's better than credit card debt</h2> <p>Mortgage debt comes with low interest rates. That makes it much less painful than credit card debt, for example. While your mortgage loan might come with an interest rate of 4 percent or even lower, you'd be lucky if the interest rate on your credit card was only 15 percent.</p> <p>So if you are nearing retirement and you have both mortgage and credit card debt, it makes more sense to devote any extra dollars to <a href="http://www.wisebread.com/fastest-way-to-pay-off-10000-in-credit-card-debt?ref=internal" target="_blank">paying off your credit cards</a> first. You can start worrying about your mortgage after you've eliminated your debt with the highest interest.</p> <p>Of course, it's best to enter retirement with neither mortgage nor credit card debt. If this isn't possible for you, do the smart thing and tackle those cards first. (See also: <a href="http://www.wisebread.com/what-to-do-if-youre-retiring-with-debt?ref=seealso" target="_blank">What to Do If You're Retiring With Debt</a>)</p> <h2>2. Sometimes it's better to invest</h2> <p>You might be able to pay off that mortgage loan before retirement if you sink enough of your extra dollars into it. But it might make more sense to place those same dollars into the stock market or other investment vehicle.</p> <p>The average annual return for the S&amp;P 500 since it was first launched in 1928 has been about 10 percent. And that's factoring in both great years and terrible years. So instead of pouring more money into your mortgage, you might do better financially by investing your extra dollars and enjoying the higher returns. (See also: <a href="http://www.wisebread.com/7-reasons-to-invest-in-stocks-past-age-50?ref=seealso" target="_blank">7 Reasons to Invest in Stocks Past Age 50</a>)</p> <p>This only holds true, of course, if you can actually afford your mortgage payment once you move into retirement. If you're worried that you won't have enough monthly cash flow to make these payments on time, do everything you can to pay off that mortgage first. (See also: <a href="http://www.wisebread.com/6-ways-you-can-cut-costs-right-before-you-retire-0?ref=seealso" target="_blank">6 Ways You Can Cut Costs Right Before You Retire</a>)</p> <h2>3. Paying rent can be risky</h2> <p>Your retirement plan might involve selling your home, paying off your mortgage, and downsizing to an apartment. But be careful: Renting comes with plenty of risk.</p> <p>If you have a fixed-rate mortgage, your payment will remain mostly constant until you pay it off. If you're renting, though, your landlord can raise your monthly payment every time your current lease agreement comes to an end.</p> <p>When living on a fixed income, certainty is good. The life of a renter doesn't have as much certainty. Again, if you can afford your monthly mortgage payment, you might want to keep it and avoid the uncertainty of rent that could fluctuate from year to year.</p> <h2>4. You won't lose the tax deduction</h2> <p>Homeowners with mortgage payments do receive a tax deduction every year. Each year, they can deduct the amount of interest they pay on their home loans. If you pay off your mortgage loan, you'll lose this deduction. (See also: <a href="http://www.wisebread.com/is-it-safe-to-re-finance-your-home-close-to-retirement?ref=seealso" target="_blank">Is it Safe to Re-Finance Your Home Close to Retirement?</a>)</p> <p>It's important to note, though, that this deduction might not be particularly large by the time you're nearing retirement. That's because you pay far more interest each year during the earliest days of your mortgage. By retirement age, you'll probably be paying far less in interest with each monthly payment.</p> <p>Again, though, if having a mortgage payment fits comfortably in your budget, you might want to keep that deduction. (See also: <a href="http://www.wisebread.com/10-surprising-ways-real-estate-cuts-your-taxes?ref=seealso" target="_blank">10 Surprising Ways Real Estate Cuts Your Taxes</a>)</p> <h2>5. You keep your dream home</h2> <p>Most retirees who need to pay off a mortgage do so by selling their homes. But what if you love your home? What if it's located in the ideal location near family members and friends? You might not want to sell.</p> <p>And what if selling your home won't generate enough income to allow you to move into an assisted-living facility, downtown condo, or smaller suburban home? There's no guarantee that you'll fetch the dollars you need in a home sale.</p> <p>Keeping the mortgage &mdash; if you can afford the payments &mdash; could allow you to stay in a home that already fits your needs.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-benefits-of-carrying-a-mortgage-into-retirement&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Benefits%2520of%2520Carrying%2520a%2520Mortgage%2520Into%2520Retirement.jpg&amp;description=5%20Benefits%20of%20Carrying%20a%20Mortgage%20Into%20Retirement"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Benefits%20of%20Carrying%20a%20Mortgage%20Into%20Retirement.jpg" alt="5 Benefits of Carrying a Mortgage Into Retirement" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/5-benefits-of-carrying-a-mortgage-into-retirement">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-money-moves-that-will-ruin-your-mortgage-application">5 Money Moves That Will Ruin Your Mortgage Application</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/4-home-buying-habits-we-can-learn-from-millennials">4 Home-Buying Habits We Can Learn From Millennials</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/should-you-pay-your-mortgage-off-early">Should You Pay Your Mortgage Off Early?</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/how-to-build-equity-in-your-home">How to Build Equity in Your Home</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-mortgage-details-you-should-know-before-you-sign">5 Mortgage Details You Should Know Before You Sign</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing Retirement benefits debt homeownership investing loans low interest rates monthly payments mortgages tax deductions Wed, 25 Oct 2017 08:30:06 +0000 Dan Rafter 2039415 at http://www.wisebread.com Get Smart About Money With These 18 Free Online Courses http://www.wisebread.com/get-smart-about-money-with-these-18-free-online-courses <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/get-smart-about-money-with-these-18-free-online-courses" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/young_man_using_laptop.jpg" alt="Young man using laptop" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>A growing number of leading business schools and universities are offering free personal finance courses online. Why not take advantage of these sophisticated resources to grow your knowledge and take your finances to the next level? (See also: <a href="http://www.wisebread.com/10-places-to-get-free-personal-finance-classes?ref=seealso" target="_blank">10 Places to Get Free Personal Finance Classes</a>)</p> <p>These free online courses are sometimes known as Massive Open Online Courses (MOOCs). Many are either based on university courses, or actually are the same university courses that have been offered to paying students on campus. Although you will not get credit toward a degree for taking a free class, you can certainly learn a thing or two that will help you manage your finances and become a better negotiator, entrepreneur, and investor. (See also: <a href="http://www.wisebread.com/8-cheap-ways-to-continue-your-education-without-going-back-to-school?ref=seealso" target="_blank">8 Cheap Ways to Continue Your Education Without Going Back to School</a>)</p> <h2>1. Finance for Everyone: Smart Tools for Decision-Making</h2> <p>This <a href="https://www.edx.org/course/finance-everyone-smart-tools-decision-michiganx-fin101x-1#" target="_blank">introductory personal finance course</a> through the University of Michigan covers the basics of personal finance, teaching frameworks and methods that will better equip you to make sound everyday financial decisions.</p> <p>Time commitment: 6 weeks, 5&ndash;6 hours per week.</p> <h2>2. Behavioral Economics in Action</h2> <p>Offered through the University of Toronto, <a href="https://www.edx.org/course/behavioral-economics-action-university-torontox-be101x-0#" target="_blank">Behavioral Economics in Action</a> teaches students how economics drives consumer decisions and how to develop tools that lead to better financial decisions.</p> <p>Time commitment: 6 weeks, 4&ndash;5 hours per week.</p> <h2>3. Personal Finance</h2> <p>Purdue University offers <a href="https://www.edx.org/course/personal-finance-purduex-pn-17-2" target="_blank">Personal Finance</a>; Improve your money management by improving your understanding of key personal finance concepts such as investments, credit, and insurance.</p> <p>Time commitment: 5 weeks, 3&ndash;4 hours per week.</p> <h2>4. Analyzing Global Trends for Business and Society</h2> <p>The Wharton University of Pennsylvania offers an online course on <a href="https://www.edx.org/course/analyzing-global-trends-business-society-wharton-trends1x?source=aw&amp;awc=6798_1502742497_0d3411ef1fd94a7d7eb647004262589a&amp;utm_source=aw&amp;utm_medium=affiliate_partner&amp;utm_content=text-link&amp;utm_term=301045_https://www.class-central.com/" target="_blank">learning to understand global trends</a>, including how you can use that knowledge to make better financial decisions and investments.</p> <p>Time commitment: 7 weeks, 3&ndash;4 hours per week.</p> <h2>5. How to Start a Startup</h2> <p>With Stanford University's video course <a href="https://www.class-central.com/mooc/2572/how-to-start-a-startup" target="_blank">How to Start a Startup</a>, you'll learn the fundamentals of launching a new business; including how to develop product ideas, make sales, market products, and hire your first employees.</p> <p>Time commitment: 1,000 minutes of video.</p> <h2>6. Stocks and Bonds: Risks and Returns</h2> <p>Another Stanford video course, <a href="https://www.class-central.com/mooc/2453/stanford-openedx-stocks-and-bonds-risks-and-returns" target="_blank">Stocks and Bonds: Risks and Returns</a> covers the basics of stocks and bonds, including how value is established, what affects market prices, and what you actually get when you buy a stock or a bond.</p> <p>Time commitment: Self-paced.</p> <h2>7. Finance Theory I</h2> <p><a href="https://ocw.mit.edu/courses/sloan-school-of-management/15-401-finance-theory-i-fall-2008/" target="_blank">Finance Theory I</a>, offered by the Massachusetts Institute of Technology, teaches you how the economy and capital markets work, including an introduction to complex investment instruments such as derivatives and options.</p> <p>Time commitment: Semester-length course.</p> <h2>8. Retail Fundamentals</h2> <p>Learning <a href="https://www.edx.org/course/retail-fundamentals-dartmouthx-rfundx-0" target="_blank">how retail works</a> can give you an advantage as a consumer. This course from Dartmouth covers the basics of how businesses select inventory and set prices to maximize profit.</p> <p>Time commitment: 4 weeks, 3&ndash;4 hours per week.</p> <h2>9. Economics of Money and Banking</h2> <p>This course from Columbia University teaches the <a href="https://www.coursera.org/learn/money-banking" target="_blank">basics of banking and monetary policy</a> and offers insight into the financial crisis of 2007&ndash;2009 from the perspective of financial institutions.</p> <p>Time commitment: 13 weeks, 5 hours per week.</p> <h2>10. Introduction to Negotiation: A Strategic Playbook for Becoming a Principled and Persuasive Negotiator</h2> <p>Negotiating effectively is one of the most effective ways to get ahead financially. This course from Yale promises to &quot;<a href="https://www.class-central.com/mooc/4336/coursera-introduction-to-negotiation-a-strategic-playbook-for-becoming-a-principled-and-persuasive-negotiator" target="_blank">help you be a better negotiator</a>&quot; by teaching tactics and tools to reach a better deal.</p> <p>Time commitment: 9-week course.</p> <h2>11. Personal &amp; Family Financial Planning</h2> <p><a href="https://www.coursera.org/learn/family-planning" target="_blank">Personal &amp; Family Financial Planning</a> from the University of Florida teaches the fundamentals of personal finance and money management including budgeting, credit, and taxes.</p> <p>Time commitment: 9-week course.</p> <h2>12. Investment Vehicles, Insurance, and Retirement</h2> <p>Khan University's <a href="https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial" target="_blank">Investment Vehicles, Insurance, and Retirement</a> course teaches the basic principles that will allow you to grow your money through investments and protect your money through insurance.</p> <p>Time commitment: Self-paced.</p> <h2>13. Securing Investment Returns in the Long Run</h2> <p>In the course <a href="https://www.coursera.org/learn/investment-returns-long-run" target="_blank">Securing Investment Returns in the Long Run</a> through the University of Geneva, you'll learn about active vs. passive investing and how to evaluate the performance of your investments to achieve good long-term returns.</p> <p>Time commitment: 4 weeks, 1&ndash;3 hours per week.</p> <h2>14. Fundamentals of Personal Financial Planning</h2> <p><a href="http://cat.ocw.uci.edu/oo/getPage.php?course=AR0102092&amp;lesson=001&amp;topic=1&amp;page=1" target="_blank">Fundamentals of Personal Financial Planning</a> from UC Irvine aims to teach you how to set and reach your financial goals by improving your knowledge of personal finance.</p> <p>Time commitment: 30 hours.</p> <h2>15. Free Online Personal Finance Course</h2> <p>This <a href="https://cals.arizona.edu/sfcs/personalfinance/introduction.html" target="_blank">personal finance primer</a> from the University of Arizona will teach you how to navigate the perils of today's consumer economy by mastering personal finance principles.</p> <p>Time commitment: 15 hours.</p> <h2>16. Econ 252: Financial Markets</h2> <p>Become a smarter investor with this <a href="http://oyc.yale.edu/economics/econ-252-08" target="_blank">economics course</a> from Yale, which aims to help you understand the inner workings of financial institutions such as banks, insurance companies, and securities markets.</p> <p>Time commitment: Semester-length course.</p> <h2>17. New Venture Finance: Startup Funding for Entrepreneurs</h2> <p>If you are thinking about starting a business, <a href="https://www.coursera.org/learn/startup-funding" target="_blank">New Venture Finance: Startup Funding for Entrepreneurs</a> from the University of Maryland will help you figure out how to fund your venture.</p> <p>Time commitment: 3&ndash;5 hours per week.</p> <h2>18. Marketing in a Digital World</h2> <p><a href="https://www.coursera.org/learn/marketing-digital" target="_blank">Marketing in a Digital World</a>, from the University of Illinois at Urbana-Champaign, will teach you how digital tools are revolutionizing the way products are bought and sold, and how this is providing unprecedented advantages for consumers.</p> <p>Time commitment: 4 weeks, 6&ndash;8 hours per week.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fget-smart-about-money-with-these-18-free-online-courses&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FGet%2520Smart%2520About%2520Money%2520With%2520These%252018%2520Free%2520Online%2520Courses.jpg&amp;description=Get%20Smart%20About%20Money%20With%20These%2018%20Free%20Online%20Courses"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Get%20Smart%20About%20Money%20With%20These%2018%20Free%20Online%20Courses.jpg" alt="Get Smart About Money With These 18 Free Online Courses" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dr-penny-pincher">Dr Penny Pincher</a> of <a href="http://www.wisebread.com/get-smart-about-money-with-these-18-free-online-courses">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/6-ways-millennials-have-changed-money-so-far">6 Ways Millennials Have Changed Money (So Far)</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/9-online-forums-thatll-help-you-reach-your-financial-goals">9 Online Forums That&#039;ll Help You Reach Your Financial Goals</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-financial-basics-every-new-grad-should-know">The Financial Basics Every New Grad Should Know</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/10-financial-moves-you-can-make-during-your-commute">10 Financial Moves You Can Make During Your Commute</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-online-tools-to-manage-your-money-in-under-10-minutes-a-week">5 Online Tools to Manage Your Money in Under 10 Minutes a Week</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Education & Training entrepreneurship freebies investing learning massive open online courses money management online courses resources Tue, 03 Oct 2017 08:30:11 +0000 Dr Penny Pincher 2028482 at http://www.wisebread.com 9 Online Forums That'll Help You Reach Your Financial Goals http://www.wisebread.com/9-online-forums-thatll-help-you-reach-your-financial-goals <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-online-forums-thatll-help-you-reach-your-financial-goals" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/girl_on_coffee_break.jpg" alt="Girl on coffee break" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You've got financial goals, but why be lonely while you're reaching them? Find your tribe! Grow your group! Commit to your community! And reach those money goals faster with the help and advice of online friends who are focused on reaching the same goals with you.</p> <h2>Goal: Get better at money</h2> <p>Start here to master the personal finance basics.</p> <h3>1. Reddit personal finance</h3> <p>If you want to start being more aware of your money and more proactive in how you manage it, you can't find a better place than <a href="https://www.reddit.com/r/personalfinance/" target="_blank">Reddit's personal finance subreddit</a>. It's an active, friendly group full of down-to-earth people sharing real advice and tips and asking for insight from others.</p> <h3>2. Mr. Money Mustache Taxes forum</h3> <p>Getting better at finance means getting at least a little bit better at understanding and managing your taxes. The <a href="https://forum.mrmoneymustache.com/taxes/" target="_blank">Mr. Money Mustache Taxes forum</a> can help. Topics vary widely with the common theme of taxes bringing them all together. You'll see threads on everything from making IRA contributions, to dealing with an inheritance, to calculating self-employment tax.</p> <h2>Goal: Invest more</h2> <h3>3. BiggerPockets forum</h3> <p>For real estate investment help and support, check out the <a href="https://www.biggerpockets.com/forums" target="_blank">BiggerPockets real estate investing forum</a>. You'll find questions, answers, and plenty of advice on the subject. Topics cover everything from real estate taxes, to investment strategies, to landlord responsibilities.</p> <h3>4. Quora Returns On Investment</h3> <p>Quora is a massive Q&amp;A website with a huge array of topics; dive into <a href="https://www.quora.com/topic/Returns-On-Investment-finance" target="_blank">Returns On Investment</a> to read questions and a variety of answers on the best methods and strategies for investing your money. You can also check out the <a href="https://www.quora.com/topic/Stock-Market-Investing" target="_blank">Stock Market Investing</a> page for even more information on investing.</p> <h2>Goal: Pay off debt</h2> <h3>5. Money Saving Expert forum</h3> <p>This is a large and active forum with many financial-themed topics. Of particular interest for your debt repayment goals are the <a href="http://forums.moneysavingexpert.com/forumdisplay.php?f=76" target="_blank">Debt-Free Wannabe</a> and <a href="http://forums.moneysavingexpert.com/forumdisplay.php?f=98" target="_blank">Mortgage-Free Wannabe</a> threads. Join hundreds of members who are working their way toward their debt-free goals. It's encouraging to know you're not alone, and you can also find advice and tips for ways to be as efficient as possible with your repayment plans.</p> <h2>Goal: Stick to a budget</h2> <h3>6. Frugal Village forums</h3> <p>How deep do you want to dive into changing your lifestyle to be a more frugal one? The <a href="http://www.frugalvillage.com/forums/forum.php" target="_blank">Frugal Village forum</a> can take you there. Topics get into detail, so you can explore the one you're most interested in. There are also several threads dedicated to specific money and frugal living challenges. For extra incentive, take on a challenge with your forum friends to cheer you on.</p> <h2>Goal: Save more money</h2> <h3>7. Tip Yourself app and community</h3> <p>The <a href="https://tipyourself.com/howitworks/" target="_blank">Tip Yourself app</a> (for iOS) gives you the option to, well, tip yourself. Forego that pricey coffee, new book, or other impulse purchase and give yourself the money instead, designating the amount in the app where you can watch the dollars in your own tip jar increase. The community feature makes this app fun to use; you can see what others are doing, comment and like their tips, and receive the same kind of encouragement for yourself. While you could easily do this yourself with a savings account, the interactive, community-oriented nature of Tip Yourself adds an element of fun that might spur you to save more than you normally would on your own.</p> <h3>8. CafeMom &mdash; The Family Piggy Bank</h3> <p>CafeMom is a popular site with all sorts of specialized groups; this particular one, <a href="http://www.cafemom.com/group/114471" target="_blank">The Family Piggy Bank</a>, brings together moms who are doing their best to save, invest, and plan for a happy financial future for their families. You can join a daily savings challenge, ask a question, or find out how other families are saving money on everything from holiday gifts, family travel, food budgets, and life insurance.</p> <h2>Goal: Increase your income</h2> <h3>9. Mr. Money Mustache Entrepreneurship forum</h3> <p>The <a href="https://forum.mrmoneymustache.com/entrepreneurship/?PHPSESSID=ofgi7a48evtpkmc8d49sivq264" target="_blank">forum on Entrepreneurship</a> at Mr. Money Mustache is active and full of advice. You'll read real stories of people who are building up their own businesses in order to increase their income. You don't have to be a full-time entrepreneur or business owner to benefit from the knowledge shared here. In fact, it's a great community to be part of for encouragement as you turn your hobby or side hustle into something more profitable.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-online-forums-thatll-help-you-reach-your-financial-goals&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Online%2520Forums%2520That%2527ll%2520Help%2520You%2520Reach%2520Your%2520Financial%2520Goals.jpg&amp;description=9%20Online%20Forums%20That'll%20Help%20You%20Reach%20Your%20Financial%20Goals"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Online%20Forums%20That%27ll%20Help%20You%20Reach%20Your%20Financial%20Goals.jpg" alt="9 Online Forums That'll Help You Reach Your Financial Goals" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/annie-mueller">Annie Mueller</a> of <a href="http://www.wisebread.com/9-online-forums-thatll-help-you-reach-your-financial-goals">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/8-personal-finance-resolutions-anyone-can-master">8 Personal Finance Resolutions Anyone Can Master</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-ways-millennials-have-changed-money-so-far">6 Ways Millennials Have Changed Money (So Far)</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/10-financial-resolutions-you-can-conquer-before-new-years">10 Financial Resolutions You Can Conquer Before New Year&#039;s</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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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/reach-your-money-goals-faster-with-a-simple-naming-trick">Reach Your Money Goals Faster With a Simple Naming Trick</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance apps budgeting communities debt entrepreneurship forums goals investing saving money websites Tue, 19 Sep 2017 09:00:06 +0000 Annie Mueller 2022479 at http://www.wisebread.com What Fantasy Football Teaches Us About Personal Finance http://www.wisebread.com/what-fantasy-football-teaches-us-about-personal-finance <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/what-fantasy-football-teaches-us-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/american_football_player_is_celebrating.jpg" alt="American football player is celebrating" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It's football season, meaning that you may be among the tens of millions of fantasy football fans glued to their screens each Sunday urging players to rack up points.</p> <p>Fantasy football is a blast, but it also has a lot in common with personal finance. Both things require a lot of knowledge and research to do well. Both require planning and patience. And there's also some luck.</p> <p>Let's take a look at all of the things fantasy football can teach us about personal finance. (See also: <a href="http://www.wisebread.com/9-things-football-teaches-us-about-money?ref=seealso" target="_blank">9 Things Football Teaches Us About Money</a>)</p> <h2>Have a strategy and know when to adjust</h2> <p>When preparing for a fantasy football draft, it helps to start by understanding how you want to construct your team. Will you be relying on a great quarterback and solid run game? Or do you want great wideouts and a staunch defense? Having your strategy mapped out in advance can help you make the right picks. Of course, you may not always get the players you want, so you will have to know when it's wise to change your strategy.</p> <p>Personal finance planning also requires a strategy. It's important to map out your financial goals and outline how you plan to achieve them. If you are investing, decide how you want to construct your portfolio based on your age and the amount you want to save. From there, you can make sensible choices about the investments that are right for you.</p> <h2>Superstars can help</h2> <p>Every fantasy football manager hopes to make a run at the championship with the help of one or two star players. They want a quarterback who can consistently throw for 350 yards and three touchdowns each week, and a running back who can repeatedly run for 100 yards and two scores. These stars can help cover other deficiencies on the team.</p> <p>The same can be true for investing, if you are lucky. We all dream of a portfolio filled with super stocks that outperform the markets year after year and bring consistent, positive returns. Finding these star investments is easier said than done, but if you can grab a few, you'll be in great shape &mdash; and the rest of your investments can get away with being less than stellar.</p> <h2>You can get by without a superstar</h2> <p>So what if your fantasy football team lacks a superstar? That doesn't mean you can't win. As long as you are getting solid production at every position, you can field a very competitive team. It's a little trickier without a superstar, because you can't get away with making as many bad picks. But many of the best fantasy football teams have been comprised of solid contributors across the board rather than a few top names.</p> <p>When investing, it's important to consider this approach. Look to build a portfolio of stocks, bonds, and other investments that are solid performers, without worrying too much about whether you've got one investment that will go gangbusters. An all-around mix of above average investments can easily get you on the path to financial freedom.</p> <h2>Seek substance over flash</h2> <p>There are some fantasy football players that get treated like shiny objects that everyone must have. But sometimes their reputation isn't backed up by their performance. You may find this is the case with many investments, as well.</p> <p>Are you drawn to buying shares of a company because there's a lot of buzz around it? Or have you taken the time to analyze earnings reports and balance sheets, check price-to-earnings ratios, and determine whether a company makes for a good investment? In both investing and fantasy football, it's important to let objective information guide your decisions.</p> <h2>Understand risk and reward</h2> <p>You may have your eye on a top quarterback who has been known to put up some big numbers, but he had back surgery in the offseason. You'd hate to miss out on his production if he has a great year, but what if you select him and he ends up on injured reserve? When selecting a fantasy football team, it's important to understand the possible risks in every pick, as well as the potential upside.</p> <p>These are concepts worth understanding when it comes to investing, as well. Some investments, such as stocks, offer the potential for great returns, but come with risk. Other investments are safer, but you may limit how much you can potentially earn. When assessing risk and reward, it's important to understand your own risk tolerances and your own goals before making a decision.</p> <h2>Do your homework</h2> <p>It's hard to achieve success in fantasy football if you don't know anything about the game. Sure, you may get lucky with a few picks, but to build a championship season, you need to study the players, read up on matchups, and read the independent analysis.</p> <p>The same is true for investing and other parts of personal finance. It's not wise to buy a mutual fund without studying its historical performance, its holdings, and its expense ratios. You should never get a mortgage loan or finance a car without understanding interest rates. &quot;Just winging it&quot; might work once in awhile, but it is generally bad as a strategy.</p> <h2>There aren't many secrets</h2> <p>Not too long ago, it was hard to get detailed information about football players until you read box scores in the morning paper. Projections were listed in large, printed volumes that were often outdated by the time the season started. Nowadays, there is a mind-boggling amount of up-to-date football information available at our fingertips.</p> <p>This is also true for data on anything related to personal finance, from investments and the financial markets, to interest rates, to the pricing of products. This abundance of available information means that there's no excuse for being unprepared. But it also means that it's trickier than ever to get an edge.</p> <h2>Pay attention, be ready to pounce</h2> <p>A large part of success in fantasy football is following games closely and understanding which players may be poised for a big game. This may mean jumping at a chance to pick up a team's backup quarterback right after their starter got hurt. It may mean picking up an unknown running back right after he broke out for an unexpected big game.</p> <p>In personal finance, it's equally important to have your eyes open and be prepared to act. It might mean locking in a loan when interest rates drop to historic lows. It may mean buying a stock right after news of a big jump in earnings. Or perhaps it's simply reading the local circulars for sales and taking advantage of great bargains at the grocery store.</p> <h2>Look for value</h2> <p>One of the keys to any successful fantasy football campaign is finding that late-round draft pick that turns into a stud. It may be a player that other competitors overlooked in favor of more high-profile names. Maybe it's the backup quarterback who turns into a starter and has a great year. These undervalued players often become the difference between good and great.</p> <p>When investing, it's also important to look for value. Find stocks and funds that are underpriced based on their underlying financials. Look to invest in companies that fell out of favor due to bad publicity but still have strong operations. It's easy to go after the hot name, but real wealth building comes from finding the diamonds in the rough.</p> <h2>Be patient and don't panic</h2> <p>Your fantasy football team came out of the gate slow and you've found yourself a few games behind early in the season. Your quarterback is off to a lousy start and your running backs can't find the end zone. You could blow up your team and try to make it with some different players, but it's often best to wait and see if your team turns things around.</p> <p>When investing and saving, it's helpful to follow the same principals. Wealth is hard to acquire quickly, and it's best to have a disciplined approach of consistently setting aside as much money as you can. It's also good to have faith in the markets, which generally go up over time. This is not to say you should never sell a bad stock or occasionally adjust your investing portfolio. But making frequent changes based on single events or your own emotions is not the key to victory.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fwhat-fantasy-football-teaches-us-about-personal-finance&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FWhat%2520Fantasy%2520Football%2520Teaches%2520Us%2520About%2520Personal%2520Finance.jpg&amp;description=What%20Fantasy%20Football%20Teaches%20Us%20About%20Personal%20Finance"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/What%20Fantasy%20Football%20Teaches%20Us%20About%20Personal%20Finance.jpg" alt="What Fantasy Football Teaches Us About Personal Finance" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/what-fantasy-football-teaches-us-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-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/9-things-football-teaches-us-about-money">9 Things Football Teaches Us 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/7-best-money-management-tips-from-john-oliver">7 Best Money Management Tips From John Oliver</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-money-lessons-we-can-learn-from-jay-z">7 Money Lessons We Can Learn From Jay-Z</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/the-frugal-colonizers-guide-to-getting-to-mars">The Frugal Colonizer&#039;s Guide to Getting to Mars</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/4-money-lessons-we-can-learn-from-jk-rowling">4 Money Lessons We Can Learn From J.K. Rowling</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Entertainment fantasy football football investing lessons NFL players quarterbacks touchdowns Mon, 28 Aug 2017 08:00:05 +0000 Tim Lemke 2009242 at http://www.wisebread.com Are You Putting Off These 9 Adult Money Moves? http://www.wisebread.com/are-you-putting-off-these-9-adult-money-moves <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/are-you-putting-off-these-9-adult-money-moves" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/piggy_bank_hammer_137432908.jpg" alt="stop putting off these adult money moves" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You are not a kid anymore. It's time to start acting like an adult, especially with regard to your money. Procrastination won't help you on the path to financial freedom, so it's time to grow up, and examine whether you've been avoiding these adult money moves.</p> <h2>1. Bolstering your emergency fund<strong> </strong></h2> <p>When you are young, you may not need a lot of extra cash on hand. After all, you may feel like your life is simple enough that very few emergencies would result in financial ruin.</p> <p>As you get older, though, there are more costly events that can crop up. You may own a home and face major, unexpected repairs. You may have children with unexpected medical needs. And because your overall expenses are higher, you'll be hurt more if you or a spouse loses their job.</p> <p>While it's important to invest for the long-term, it's also crucial that you keep enough cash on hand to cover emergencies. At least three to six months' worth of income is a good rule of thumb. Without this savings, you may find yourself in debt or tapping into retirement savings to get by. (See also: <a href="http://www.wisebread.com/4-new-reasons-you-need-an-emergency-fund?ref=seealso" target="_blank">4 New Reasons You Need an Emergency Fund</a>)</p> <h2>2. Tracking your money</h2> <p>When you're young and living large, you have no idea where your money is going. You are too busy having fun to worry about it. But now you're an adult, and it's time to actually assess what you are spending your cash on.</p> <p>It's impossible to budget and save if you have no idea where to cut expenses. To begin tracking your money, analyze your bank and credit card statements to view all of the purchases you've made. Enter these into a spreadsheet, or use an account consolidation website such as Mint.com to help you. Once you start tracking, you'll have a good idea of where you've been wasting money and where you can start cutting down on your costs. (See also: <a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps?ref=seealso" target="_blank">Build Your First Budget in 5 Easy Steps</a>)</p> <h2>3. Sticking to a budget</h2> <p>Once you get a handle on where your money is going, it's time to develop a system that will allow you to save money. The only way to avoid debt and save for the future is to keep expenses below what you earn. This may mean making tough decisions and reducing nonessential spending.</p> <p>You may have to eat out less. You may need to cancel your cable TV or baseball season tickets. You may need to forgo that trip to the Caribbean. Set a budget for groceries each week, drive less, and clip more coupons. None of this is fun, but it's what adults do if they want to achieve financial freedom.</p> <h2>4. Getting your credit card debt under control</h2> <p>Early on in life, your credit card debt may just seem like a number you can hide from yourself. But at a certain point, it's something that truly impacts your ability to build wealth and obtain financial freedom.</p> <p>When your debt is high, this impacts your credit score, which in turn impacts what you will pay for things like a mortgage and auto loan. In essence, debt can become a downward spiral of pain if you don't nip it in the bud early. Be an adult, and start paying down that credit card debt.</p> <p>Try to go after the debt with the highest interest rates first, then go from there (otherwise known as the avalanche method). Begin using cards more sparingly and rely instead on good old cash as much as possible. Soon, you'll see your credit score rise and your overall financial picture will look much rosier. (See also: <a href="http://www.wisebread.com/the-fastest-method-to-eliminate-credit-card-debt?ref=seealso" target="_blank">The Fastest Method to Eliminate Credit Card Debt</a>)</p> <h2>5. Saving for a home</h2> <p>Homeownership isn't for everyone, but there will likely come a time in your life when it makes sense to build equity in real estate rather than spend money on rent. Owning a home gives you a sense of pride, a sense of stability for your family, and is a good financial move in the long run &mdash; as long as you can manage the monthly payments.</p> <p>To make a sensible home purchase, traditional expertise has advised saving enough money for a down payment of at least 20 percent. So if you are eyeballing a $250,000 home, for example, that means amassing $50,000 &mdash; a sizable amount. While you aren't required to put 20 percent down, doing so can help you avoid having to pay private mortgage insurance, or PMI, until you build up equity in your home. Saving for a down payment is not an easy task, and may take many years, so it's best to start as soon as possible. (See also: <a href="http://www.wisebread.com/4-easy-ways-to-start-saving-for-a-down-payment-on-a-home?ref=seealso" target="_blank">4 Easy Ways to Start Saving for a Down Payment on a Home</a>)</p> <h2>6. Investing toward retirement</h2> <p>The notion of saving for your 60s might seem ridiculous when you're in your 20s. But you can't put off retirement savings forever, and this procrastination can really hurt you down the line. The earlier you start saving, the more money you will have when it's time to leave the workforce.</p> <p>If you're into your 30s or 40s and have little saved for retirement, you need to start socking money away right now. Take advantage of your employer's 401(k) plan and any of your company's matching contributions. You can also open an individual retirement account (IRA). Max out these accounts, if possible. The sooner you start investing, the more time your money has to grow. (See also: <a href="http://www.wisebread.com/7-retirement-planning-steps-late-starters-must-make?ref=seealso" target="_blank">7 Retirement Planning Steps Late Starters Must Make</a>)</p> <h2>7. Saving for your kids' education</h2> <p>It's hard to imagine saving for college when you have no children yet, or your kids haven't even left elementary school. But with college costing tens of thousands of dollars, and getting more expensive every year, you shouldn't put off saving for too long if you plan to help your children with some of the expense.</p> <p>It's possible to begin saving before your child is even born, and there are many investment accounts, including the popular 529 college savings plans, that offer great tax advantages to those that save for education. It's not wise to save for college costs at the expense of your own retirement, but if you have the ability to put aside money for both, do it sooner rather than later. (See also: <a href="http://www.wisebread.com/5-smart-places-to-stash-your-kids-college-savings?ref=seealso" target="_blank">5 Smart Places to Stash Your Kid's College Savings</a>)</p> <h2>8. Getting properly insured</h2> <p>Proper financial planning isn't just about accumulating wealth, but protecting it. The best way to protect your assets is by insuring them at appropriate levels. Do you own a home? Make sure you have homeowners insurance to protect the structure and everything inside. Do you and your family members have health insurance to protect against illness or injury? And do you have life insurance so that your family will be financially OK if something were to happen to you?</p> <p>Insurance can sometimes seem like a waste of money if you don't use it. But when something bad does happens, you'll be massively grateful you have it. (See also: <a href="http://www.wisebread.com/5-reasons-why-life-insurance-isnt-just-for-old-people?ref=seealso" target="_blank">5 Reasons Why Life Insurance Isn't Just for Old People</a>)</p> <h2>9. Crafting a will</h2> <p>Do you know who gets your assets if you unexpectedly pass away? Do you know who will take care of your children if you are no longer around? Have you given any thought to whether you'd like to be kept on life support if you are the victim of an accident? These are unpleasant things to think about, but they are important considerations.</p> <p>In the absence of a will or other documents that outline your wishes, family members may be left to make challenging decisions. The money and assets you wished to pass on to specific relatives may not be passed on according to your plans. Writing a will may not seem like a crucial thing to do when you are young, but it becomes more important as you get older, expand your family, and accumulate assets. (See also: <a href="http://www.wisebread.com/what-you-need-to-know-about-writing-a-will?Ref=seealso" target="_blank">What You Need to Know About Writing a Will</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Are%20You%20Putting%20Off%20These%209%20Adult%20Money%20Moves-.jpg" alt="Are You Putting Off These 9 Adult Money Moves?" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/are-you-putting-off-these-9-adult-money-moves">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/dont-let-outdated-money-advice-endanger-your-money">Don&#039;t Let Outdated Money Advice Endanger Your 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/9-best-free-financial-learning-tools">9 Best Free Financial Learning Tools</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/10-financial-resolutions-you-can-conquer-before-new-years">10 Financial Resolutions You Can Conquer Before New Year&#039;s</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/6-simple-money-milestones-anyone-can-hit">6 Simple Money Milestones Anyone Can Hit</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-10-biggest-lies-we-tell-ourselves-about-money">The 10 Biggest Lies We Tell Ourselves About Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance budgeting college costs debt down payments education estate planning investing life insurance money moves retirement saving wills Fri, 18 Aug 2017 08:00:05 +0000 Tim Lemke 2005241 at http://www.wisebread.com 7 Money Lessons We Can Learn From Jay-Z http://www.wisebread.com/7-money-lessons-we-can-learn-from-jay-z <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-money-lessons-we-can-learn-from-jay-z" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/jay_z_singing.jpg" alt="Jay Z singing" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Hip-hop artist Jay-Z recently dropped his latest release, <em>4:44</em>, and is already getting praise for an album that's fresh, honest, and full of insightful commentary.</p> <p>Any observer of Jay-Z's career can learn a thing or two about entrepreneurship and handling money, as the man is worth upward of $800 million according to recent estimates. But <em>4:44</em> has some great new insights on the value of saving and investing, supporting your community, and passing wealth on to the next generation.</p> <h2>1. Diversify your income</h2> <p>Jay-Z isn't just a rapper. He's a founder and owner of record companies. He has a clothing line and a sports bar. He's a part owner of the NBA's Brooklyn Nets. He has involvement in the casino and real estate industries. He owns the majority of the music streaming service, Tidal. All of this has allowed him to amass a net worth of reportedly more than $800 million, far more than he could make from music alone. He's set for life even if he never raps another word, and if any one of his revenue streams falters, he has plenty of other streams coming in.</p> <h2>2. Get married</h2> <p>There are many benefits to being married, and it can often be great for your finances. Having a joint income can improve your buying and borrowing power, and boost the overall net worth of your family. In Jay-Z's case, he's married to Beyoncé, a hugely popular music artist with a net worth that rivals his own. In his new song, &quot;Family Feud,&quot; Jay-Z asks, &quot;What's better than one billionaire? Two.&quot;</p> <h2>3. Support your community</h2> <p>In his new album, Jay-Z raps at length about looking out for those in the black community, noting that &quot;Nobody wins when the family feuds.&quot; He extends this advice to supporting black-owned businesses when he says, &quot;Black-owned things, hundred percent, black-owned Champagne. And we merrily merrily eating off these streams.&quot;</p> <h2>4. Think about your heirs</h2> <p>Many ultrawealthy people got that way through their own business success, but many started out wealthy as money was passed on from their parents. In fact, what often separates wealthy and poorer communities is the amount of &quot;generational wealth&quot; and savings that remains in families over the course of decades.</p> <p>Jay-Z raps about this very concept in the new song, &quot;Legacy,&quot; saying &quot;Generational wealth, that's the key/My parent's ain't have s**t, so that ship started with me/My mom took her money, she bought me bonds/That was the sweetest thing of all time.&quot;</p> <p>Jay-Z also gives a small nod to estate planning by having his daughter Blue Ivy open &quot;Legacy&quot; by asking &quot;Daddy, what's a will?&quot;</p> <h2>5. Buy real estate on the cheap</h2> <p>Jay-Z has made good money on real estate deals, but also recognizes that he may have missed out on some bargains, too. In his song, &quot;The Story of O.J.,&quot; he laments spending his money on frivolous items when he could have bought property in a once-troubled neighborhood.</p> <p>&quot;Wish I could take it back to the beginning/I coulda bought a place in Dumbo before it was Dumbo/For like two million/That same building today is worth 25 million/Guess how I'm feeling? Dumbo.&quot;</p> <h2>6. Spend wisely and invest</h2> <p>In &quot;The Story of O.J.,&quot; Jay-Z digs into the idea that young people should stop worrying about &quot;living large&quot; and instead plan for the future. He advocates buying and holding onto things that will increase in value.</p> <p>&quot;Financial freedom my only hope/F**k living rich and dying broke/I bought some artwork for one million/Two years later, that s**t worth two million/Few years later, that s**t worth eight million.&quot;</p> <h2>7. Control your image and products</h2> <p>It remains to be seen whether Jay-Z's purchase of streaming service Tidal will pay off in the long run, but the move did give him control over how his music &mdash; and its revenue &mdash; would be distributed. Jay-Z has released his latest album exclusively on Tidal, meaning that he will no longer be at the mercy of other competitors who may take a bigger cut of revenue. Jay-Z has noted that Tidal offers higher quality streaming than other services, making it more respectful of artists.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-money-lessons-we-can-learn-from-jay-z&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Money%2520Lessons%2520We%2520Can%2520Learn%2520From%2520Jay-Z.jpg&amp;description=7%20Money%20Lessons%20We%20Can%20Learn%20From%20Jay-Z"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Money%20Lessons%20We%20Can%20Learn%20From%20Jay-Z.jpg" alt="7 Money Lessons We Can Learn From Jay-Z" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/7-money-lessons-we-can-learn-from-jay-z">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/7-money-lessons-we-can-learn-from-beyonc">7 Money Lessons We Can Learn From Beyoncé</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/what-fantasy-football-teaches-us-about-personal-finance">What Fantasy Football Teaches Us 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/7-best-money-management-tips-from-john-oliver">7 Best Money Management Tips From John Oliver</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/financial-lessons-from-its-a-wonderful-life">Financial Lessons From &quot;It&#039;s A Wonderful Life&quot;</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-frugal-colonizers-guide-to-getting-to-mars">The Frugal Colonizer&#039;s Guide to Getting to Mars</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Entertainment black-owned business credit financial lessons generational wealth hip-hop income diversification investing Jay-Z rap Tue, 25 Jul 2017 08:00:11 +0000 Tim Lemke 1989545 at http://www.wisebread.com The Financial Basics Every New Grad Should Know http://www.wisebread.com/the-financial-basics-every-new-grad-should-know <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-financial-basics-every-new-grad-should-know" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/thoughtful_graduate_student_woman_looking_at_light_bulb.jpg" alt="Thoughtful graduate student woman looking at light bulb" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you're a recent college grad, congratulations. As you settle into your first job, you'll probably have more money flowing through your life than ever before.</p> <p>Take a minute to think of your financial potential. Let's say your starting salary is $45,000. If you're 21 years old, earn a 3 percent raise each year, and work until you're 70, you will have made nearly $5 million by the time you retire! (To use your actual salary and change other assumptions, use <a href="https://www.calcxml.com/calculators/ins07" target="_blank">this lifetime earnings calculator</a>.)</p> <p>Here are seven ideas for making the most of your financial potential.</p> <h2>Plan to succeed</h2> <p>To be intentional about your use of money, you need a plan. That's right, you need a budget &mdash; or as I prefer to call it, a cash flow plan. Today, free tools such as Mint.com make the process relatively painless.</p> <p>There are three key activities involved in using a budget: planning, tracking, and adjusting. First, figure out how much of your income you need to allocate to housing, food, clothing, and all the rest of your expenses. Your income will determine how much you have for discretionary spending on, say, entertainment.</p> <p>Then, keep track of your expenses. You can jot them in a notebook or spreadsheet, or link a tool like Mint to your checking account and credit cards, so it can do much of the tracking for you.</p> <p>Don't be discouraged if you don't hit your numbers each and every month. Your assumptions may have been unrealistic. Plus, your goals and circumstances will change, so the amounts you allocate for various categories will need to be adjusted over time as well.</p> <h2>Put some away</h2> <p>The key to building wealth is to set aside a portion of every dollar you earn for saving and investing. There are two separate types of savings that are important.</p> <p>First, there's an emergency fund. In life, stuff happens. An important way to avoid going into debt for that stuff is to have some money set aside in savings. Financial advisers often recommend your emergency fund have enough to cover three to six months' worth of essential living expenses.</p> <p>But when you're just starting out, you probably have relatively few breakable moving parts in your life. For example, renting an apartment is less financially risky than owning a home. If that's you, having three months' worth of expenses in savings is probably enough.</p> <p>The second type of savings is for periodic expenses. These are expenses that occur every year, but not every month &mdash; things like a semiannual car insurance premium, end-of-year holiday gifts, or a vacation. Take the annual total of each of these items, divide by 12, and then put that much in savings each month. That way, when the expense comes due, you'll have the money already set aside.</p> <h2>Invest for your future</h2> <p>A little bit of money invested each month for a long time and at a decent rate of return will eventually turn into a lot of money you can use for retirement. Using our earlier assumptions (age 21, starting salary of $45,000, and a 3 percent annual raise), if you invest 10 percent of your salary (a good target) and generate an average annual return of 7 percent, by the time you're 70, you will have built a retirement nest egg of $2.7 million!</p> <p>Bottom line? If your employer offers a workplace retirement plan, such as a 401(k), sign up as soon as possible. And don't miss out on any matching money.</p> <h2>Keep your biggest expense under control</h2> <p>Aim to spend no more than 25 percent of your monthly gross income on housing &mdash; even better if you can keep it to no more than 20 percent. If you own, that's the combination of your mortgage, insurance, and property taxes. If you rent, that's the combination of your rent, insurance, and utilities.</p> <p>Keeping your housing costs within that range will give you the margin you need to save, invest, and enjoy financial peace of mind.</p> <h2>Avoid a car payment</h2> <p>Vehicles depreciate in value quickly, so avoid financing them. If you can't pay cash right away, see if you can go without a car, at least while you save up for one. That may be viable if you live in a city with good public transportation. If not, get the least expensive used car that's highly rated by Consumer Reports.</p> <p>You're not looking for something flashy. You're looking for a car you can pay off quickly and keep for a long time. By the time you need to replace it, the combination of your savings and the value you'll still be able to get when trading in your current car should enable you to afford a nicer car.</p> <h2>Choose your bank or credit union carefully</h2> <p>Too often, people choose where to open a checking account based on which bank has the best promotion. Once you go to the trouble of setting up online bill-pay with your utilities, insurance providers, and others, the hassle factor involved in changing banks goes up a lot. So, choose carefully.</p> <p>If you use an ATM frequently, you'll want a bank with lots of ATM locations. And you'll probably want a bank that doesn't charge a fee for a low balance.</p> <h2>Get a credit card</h2> <p>Having a credit card in your own name will help you start building a credit score, which is beneficial for everything from getting a job to paying the least for insurance. (See also: <a href="http://www.wisebread.com/how-to-use-credit-cards-to-improve-your-credit-score?ref=seealso" target="_blank">How to Use Credit Cards to Improve Your Credit Score</a>)</p> <p>If you don't have a credit card already, see if you could get one through your bank. If not, a retailer may be more willing to approve you &mdash; but retail cards are notorious for having high interest rates, so make sure you pay off your bills quickly. If you still have trouble, look into getting a <a href="http://www.wisebread.com/the-5-best-secured-credit-cards" target="_blank">secured card</a>. With a secured card, you'll have to put down a deposit, which will usually be equal to your credit limit.</p> <p>Just be sure to be responsible. That means using your credit card only for preplanned, budgeted expenses, recording any charges in your budget right away, and paying the balance on time and in full each month.</p> <p>If you take the steps and build the habits described above, you'll give yourself the best possible chance of making the most of your financial potential.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fthe-financial-basics-every-new-grad-should-know&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FThe%2520Financial%2520Basics%2520Every%2520New%2520Grad%2520Should%2520Know.jpg&amp;description=The%20Financial%20Basics%20Every%20New%20Grad%20Should%20Know"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/The%20Financial%20Basics%20Every%20New%20Grad%20Should%20Know.jpg" alt="The Financial Basics Every New Grad Should Know" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/matt-bell">Matt Bell</a> of <a href="http://www.wisebread.com/the-financial-basics-every-new-grad-should-know">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/the-12-month-get-richer-plan">The 12-Month Get-Richer 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/7-money-conversations-parents-should-have-with-their-adult-kids">7 Money Conversations Parents Should Have With Their Adult Kids</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/10-financial-resolutions-you-can-conquer-before-new-years">10 Financial Resolutions You Can Conquer Before New Year&#039;s</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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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-start-a-family-before-reaching-these-5-money-goals">Don&#039;t Start a Family Before Reaching These 5 Money Goals</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance advice budgeting college graduates expenses financial planning grads investing money management retirement saving money tips Fri, 21 Jul 2017 08:00:11 +0000 Matt Bell 1988263 at http://www.wisebread.com 7 Financial Differences Between Millennials and the Next Generation http://www.wisebread.com/7-financial-differences-between-millennials-and-the-next-generation <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-financial-differences-between-millennials-and-the-next-generation" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/group_of_friends_having_fun.jpg" alt="Group of friends having fun" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>We hear a lot about millennials and their money, but what about the generation behind them? Members of Generation Z are now approaching adulthood, and have their own unique characteristics. They may also have their own unique attitudes toward money. How do millennials and Generation Z differ? The answer to those questions could have fascinating implications for our economy.</p> <h2>1. Generation Z may be more frugal</h2> <p>Members of Generation Z may only now be entering adulthood, but there are indications that they are more conservative with their money than previous generations. Perhaps it's because this generation has grown up at a time of unrest, from the attacks of September 11, 2001 and the aftermath, to the near collapse of the financial sector at the end of the last decade.</p> <p>The 2016 Annual State of Credit published by Experian noted that Generation Z has an average of 1.29 credit cards, compared to 2.02 for millennials. They also have about half as much debt overall, though it's worth noting that many are entering college age, when debt levels can soar.</p> <h2>2. Generation Z is totally cool with technology</h2> <p>Millennials are pretty tech-savvy, but Generation Z is the first generation that's never known a time without the internet. This means they should be entirely accepting of online banking and investing, using mobile payment apps, and similar innovations &mdash; though they will be cautious, due to their awareness of high-profile data breaches. Generation Z will also have no recollection of the tech bubble burst of the late 1990s, so they'll be perfectly comfortable investing in tech stocks.</p> <h2>3. Generation Z wants career stability</h2> <p>There is some evidence that members of Generation Z prefer to go after careers that are solid and pragmatic. The consulting firm Altitude reported that this generation may be less entrepreneurial and more focused on stability and earning enough money to avoid financial struggles.</p> <p>Another report from Bainbridge Consulting found that more than half Generation Z-ers feel like they need to get work experience as soon as possible in order to succeed. The broader economic implications of this risk aversion will be worth watching in the coming years.</p> <h2>4. Millennials may be less focused on retirement</h2> <p>Even though millennials are the older generation, it's Generation Z that may already be focused on retirement savings. One study from the Center for Generational Kinetics found that about 12 percent of Gen Z-ers already have some retirement savings. Another 35 percent said they expect to begin saving once they hit their 20s. Some of this may be influenced by parents who urged them to save; more than one out of every five people in Generation Z reported having savings accounts by age 10.</p> <h2>5. Millennials are more loyal to brands</h2> <p>Good luck trying to get a millennial to switch from an Apple to an Android phone, or vice versa. But those from Generation Z don't have the same kind of steadfast allegiance to products. A study by IBM said two-thirds of this young generation prefer high-quality products that last, and will do their homework to find the best value, regardless of brand.</p> <h2>6. Generation Z shops smarter</h2> <p>Because of their internet savvy, members of Generation Z know how to comparison shop and get information about products online. Research from MarketingProfs showed that more than half of people in Generation Z use YouTube and other social media sites to research products before they buy.</p> <h2>7. Generation Z is wary of student debt</h2> <p>About two-thirds of millennials say they have more than $10,000 in student loan debt. This reality has led Generation Z to be more thoughtful when examining the value of higher education. One survey by Adecco reported that 21 percent of Generation Z students said they were concerned about the price of tuition, compared to 13 percent for millennials. There are also indications that Generation Z is less inclined to go after a costly advanced degree.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-financial-differences-between-millennials-and-the-next-generation&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Financial%2520Differences%2520Between%2520Millennials%2520and%2520the%2520Next%2520Generation.jpg&amp;description=7%20Financial%20Differences%20Between%20Millennials%20and%20the%20Next%20Generation"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Financial%20Differences%20Between%20Millennials%20and%20the%20Next%20Generation.jpg" alt="7 Financial Differences Between Millennials and the Next Generation" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/7-financial-differences-between-millennials-and-the-next-generation">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/10-reasons-to-cut-millennials-some-slack-about-their-money">10 Reasons to Cut Millennials Some Slack About Their 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/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-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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/8-money-moves-to-make-the-moment-you-get-a-promotion">8 Money Moves to Make the Moment You Get a Promotion</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/6-ways-meditation-can-make-you-a-money-master">6 Ways Meditation Can Make You a Money Master</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance career goals generation z investing millennials retirement saving spending technology youth Mon, 17 Jul 2017 08:00:12 +0000 Tim Lemke 1982851 at http://www.wisebread.com 10 Reasons to Cut Millennials Some Slack About Their Money http://www.wisebread.com/10-reasons-to-cut-millennials-some-slack-about-their-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-reasons-to-cut-millennials-some-slack-about-their-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/bad_news_headlines.jpg" alt="Bad news headlines" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Millennials are getting beat up these days for their money habits. According to observers, people between the ages of 18 and 34 are financially irresponsible &mdash; one CEO even suggested they are spending too much money on <a href="http://time.com/money/4778942/avocados-millennials-home-buying/" target="_blank">pricey avocados</a> when they should be saving for a home.</p> <p>But these reports are unfair. There's a lot of evidence to suggest that from a financial standpoint, millennials may be facing unique challenges that older generations simply didn't deal with. (See also: <a href="http://www.wisebread.com/7-ways-millennials-are-better-with-money-than-you-are?ref=seealso" target="_blank">7 Ways Millennials Are Better With Money Than You Are</a>)</p> <p>Should we take it easy on millennials when it comes to their money habits? Perhaps, and here's why.</p> <h2>1. College is really expensive</h2> <p>We encourage young people to attend college, but according to Student Loan Hero, the average member of the class of 2016 graduated with more than $37,000 in student loan debt. Borrowers between the age of 20 and 30 spend an average of more than $350 a month to pay off these loans.</p> <p>This student debt is largely the result of rising college costs: Public school costs have risen 9 percent over the last four years, and private universities have risen 13 percent. A student attending a four-year private school now pays an average of $45,000 each year. While it's true that young adults should be aware of the cost of college when deciding if and where to attend, it's also clear that many are now handcuffed by their student loan burdens. (See also: <a href="http://www.wisebread.com/7-unique-ways-millennials-are-dealing-with-student-loan-debt?ref=seealso" target="_blank">7 Unique Ways Millennials Are Dealing With Student Loan Debt</a>)</p> <h2>2. Wages haven't gone up</h2> <p>One of the biggest problems with the current economy is that it's been a long time since wages have gone up in real terms. In fact, there's evidence that wage growth has basically been stagnant since the 1970s, and any wage growth at all has been concentrated to the top earners.</p> <p>Anyone without a college degree has seen their wages decline, on average, in the last decade. It's easy to accuse millennials of making bad financial choices, but there's very little evidence they are rolling in the dough to begin with.</p> <h2>3. Housing is really costly</h2> <p>In many parts of the country &mdash; especially those with good job opportunities for millennials &mdash; it's nearly impossible to find an affordable house or apartment. A recent survey of 24,000 renters by ApartmentList.com found that millennials would have to wait more than a decade to save enough for a 20 percent down payment on a home in many markets. In some cities, including San Francisco and Austin, the wait is as much as 19 years.</p> <p>There are simply not enough affordable, entry-level homes available for millennials to buy, and with interest rates rising, the problem is only going to get worse.</p> <h2>4. Saving for retirement is mostly on them</h2> <p>If you're a baby boomer or even a GenXer, you might have worked for a company that offered generous pensions to its employees. For much of the 20th century, workers could find decent jobs at big companies and know they'd be getting a monthly check even after retirement.</p> <p>Nowadays, it's up to the individual to save for retirement, using a 401(k) plan (if they have access to one) or individual retirement accounts (IRAs). No doubt, you can generate a lot of wealth this way over time, but most of the savings will have to come from the worker, not the employer. And for many young people, setting money aside for retirement is an afterthought if they are also facing student loan debt and other expenses. (See also: <a href="http://www.wisebread.com/4-things-millennials-should-do-today-to-prepare-for-retirement?ref=seealso" target="_blank">4 Things Millennials Should Do Today to Prepare for Retirement</a>)</p> <h2>5. They've lived through several market crashes</h2> <p>For millennials, the stock market and economy have done quite well during their time on Earth, but there were several big events that may have left them wary about investing.</p> <p>The stock market endured three straight years of bad losses from 2000 to 2002, due to the dot com bubble bursting and the terrorist attacks of September 11. The markets tumbled dramatically again in 2008 after the financial crisis. These events may have taken place during a millennials' formative years, and the headlines may have clouded their belief in the power of investing. (See also: <a href="http://www.wisebread.com/7-reasons-millennials-should-stop-being-afraid-of-the-stock-market?ref=seealso" target="_blank">7 Reasons Millennials Should Stop Being Afraid of the Stock Market</a>)</p> <h2>6. Many don't use credit cards at all</h2> <p>We often assume that millennials have a ton of credit cards. But according to one survey, millennials have fewer cards than most Americans. BankRate.com reported last year that only one-third of people under the age of 30 have a credit card. (See also: <a href="http://www.wisebread.com/best-credit-cards-for-millennials?ref=seealso" target="_blank">Best Credit Cards for Millennials</a>)</p> <h2>7. Everybody is marketing to them</h2> <p>It's easy to say that millennials should be more frugal, but that's easier said than done when America's marketing dollars are bombarding that exact generation. Ask any advertiser what their coveted demographic is, and they'll likely tell you they deliberately target people between the ages of 18 and 34.</p> <p>On one hand, we want young people to be responsible with their money. On the other, we know that consumer spending by that same group is often a big driver of the American economy.</p> <h2>8. They are more generous than you think</h2> <p>It may be frustrating to see millennials with poor personal finance skills. But while they may not necessarily be smart with money, they are not as selfish as you might believe.</p> <p>Millennials basically invented the concept of crowdfunding, which has led to sites such as GoFundMe and others that have supported nonprofits. One survey from 2014 noted that 84 percent of millennials donated to a charity that year, and that they are more likely to give on their own accord rather than from a top-down, corporate-driven approach.</p> <h2>9. They grew up in a fairly prosperous era</h2> <p>People who grew up during the Great Depression learned the hard way about living frugally and making every penny stretch. Those who grew up during World War II remember making severe sacrifices. Even baby boomers remember the gas shortages and economic stagnancy of the 1970s.</p> <p>By contrast, millennials have grown up in a time of relative prosperity. Millennials have never been forced to learn how to save and invest as a matter of survival. Is it their fault that they grew up in relative comfort compared to older generations?</p> <h2>10. Luxury items are practically necessities</h2> <p>Older people like to accuse younger generations of spending money needlessly, but think of the expenses they have that did not exist even 20 years ago. Cellphones? Tough to get by without one these days. High-speed internet service? Yeah, that's almost as important as electricity. Millennials have considerable expenses each month that were once considered luxury items, but are now considered vital.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F10-reasons-to-cut-millennials-some-slack-about-their-money&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F10%2520Reasons%2520to%2520Cut%2520Millennials%2520Some%2520Slack%2520About%2520Their%2520Money.jpg&amp;description=10%20Reasons%20to%20Cut%20Millennials%20Some%20Slack%20About%20Their%20Money"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/10%20Reasons%20to%20Cut%20Millennials%20Some%20Slack%20About%20Their%20Money.jpg" alt="10 Reasons to Cut Millennials Some Slack About Their Money" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/10-reasons-to-cut-millennials-some-slack-about-their-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/7-financial-differences-between-millennials-and-the-next-generation">7 Financial Differences Between Millennials and the Next Generation</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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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/8-money-moves-to-make-the-moment-you-get-a-promotion">8 Money Moves to Make the Moment You Get a Promotion</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/6-ways-meditation-can-make-you-a-money-master">6 Ways Meditation Can Make You a Money Master</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance baby boomer future generation x generations habits investing millennials retirement saving spending young adults Fri, 30 Jun 2017 08:00:08 +0000 Tim Lemke 1970114 at http://www.wisebread.com Are Your Emotions Costing You Money? Take This Quiz http://www.wisebread.com/are-your-emotions-costing-you-money-take-this-quiz <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/are-your-emotions-costing-you-money-take-this-quiz" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/pensive_young_woman_holding_empty_wallet_after_shopping.jpg" alt="Pensive young woman holding empty wallet after shopping" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Building a strong financial foundation for you and your family requires discipline. It requires patience. It requires a steady mindset. But even the best of us have found ourselves spending and making financial decisions based on emotions, whether that's retail therapy, or holding off on investing due to <a href="http://www.wisebread.com/how-to-get-over-these-5-scary-things-about-investing?ref=internal" target="_blank">fear of the markets</a>. We've made decisions based on joy or comfort in the short term instead of satisfaction in the long run.</p> <p>Are you letting your emotions control your finances? Answer these questions to find out.</p> <h2>Do you spend money when you feel sad, happy, or stressed?</h2> <p>You had a bad day at work, so you go on a shopping spree for new shoes. You got a promotion, so you celebrate by taking friends out to eat at a fancy restaurant. You spend money as a reaction or antidote to whatever feelings you have at a given moment, and this makes it hard to save money at a healthy rate. You don't need to treat yourself to a costly reward every time you're happy or sad. This is an easy way to fall into a dangerous emotional spending cycle. (See also: <a href="http://www.wisebread.com/the-high-cost-of-the-treat-yourself-mindset?ref=seealso" target="_blank">The High Cost of the &quot;Treat Yourself&quot; Mindset</a>)</p> <h2>Have you held off on investing because you are afraid?</h2> <p>Fear is one of the most powerful emotions we have, and many people have never gotten started with retirement planning and investing because they are intimidated. They may find the whole process of investing to be overwhelming, or they may have a fear of asking a dumb question. Additionally, they may fear that their investments will lose money. In reality, it's best to channel fear into investing more, because not having enough money saved for retirement is a truly scary thought. (See also: <a href="http://www.wisebread.com/3-steps-to-getting-started-in-the-stock-market-with-index-funds?ref=seealso" target="_blank">3 Steps to Getting Started in the Stock Market With Index Funds</a>)</p> <h2>Have you sold investments when you realized they lost value?</h2> <p>We've probably all found ourselves frustrated with certain investments that have tanked, and sold them at a loss. Of course, then we've kicked ourselves when we've seen those same investments rebound in short order. It's not a good practice to be emotional when investing; the most successful investors practice discipline, patience, and steadfastness over the course of many years.</p> <h2>Have you ever bought something out of jealousy?</h2> <p>One of your closest friends just bought a big house in a nice neighborhood. Another just bought a fancy car. It can seem like other people are making out better than you, but this is no excuse to spend irresponsibly. Keeping up with the joneses is a path to financial hardship if you spend simply because you feel left out or jealous.</p> <h2>Do you get excited about getting a tax return?</h2> <p>It's an often ignored fact that if you are getting a tax refund, you've been lending money to the government interest-free all year. Remember: This was your money that you should have had all along. And yet, most people get a rush of excitement from getting a tax return. What's worse, people often treat their tax return like an unexpected windfall, and spend it frivolously. The sound, unemotional approach to taxes is to adjust your withholding so that you don't get a return at all. In fact, even owing a small amount to the IRS is OK as long as you don't pay a penalty. (See also: <a href="http://www.wisebread.com/10-smart-ways-im-spending-my-tax-refund?ref=seealso" target="_blank">10 Smart Ways I'm Spending My Tax Refund</a>)</p> <h2>Have you ever sought a refund anticipation loan or payday loan?</h2> <p>The same psychology that governs the love of tax returns also applies to those who seek money before it's due to them. If you are seeking cash early, you may end up paying exorbitant fees or interest rates. A typical payday loan might have an annual interest rate of 400 percent, according to the Consumer Financial Protection Bureau. (See also: <a href="http://www.wisebread.com/six-horrible-financial-products-you-should-avoid?ref=seealso" target="_blank">Six Horrible Financial Products You Should Avoid</a>)</p> <h2>Are you a habitual gambler?</h2> <p>Let's face it: Gambling can be exciting. It's a rush when you place a bet on some ponies and see your horse cross the finish line first. It's a thrill to see your ball land on your number. But gambling is ultimately an emotion-driven experience, and the excitement of winning can be addicting. Betting on a few hands of blackjack or the occasional football game won't kill you, but it's important to not let your emotions guide your betting habits. There's a long list of fine people who have ruined their financial lives through gambling.</p> <h2>Do you give a lot of money to children and other family members?</h2> <p>There's nothing wrong with being generous to those people who you care about most. But it's important to not let people take advantage of that generosity. Often, the decision to support a family member or friend is done not out of basic selflessness, but a feeling of obligation or guilt. It's important to not let your feeling of obligation to others outweigh your obligation to yourself.</p> <h2>Have you lost a job due to your temper?</h2> <p>Jobs can be frustrating. But if you've ever flown off the handle at work, you may be threatening your income and job security. While it's true that hiring managers look for workers with specific skill sets, they also want to make sure employees are able to get along with their colleagues. Workers who don't interact well with their peers, or respond poorly to criticism, often don't last long.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/are-your-emotions-costing-you-money-take-this-quiz">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/the-10-biggest-lies-we-tell-ourselves-about-money">The 10 Biggest Lies We Tell Ourselves 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/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</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/10-types-of-friends-who-are-costing-you-money">10 Types of Friends Who Are Costing You 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/73-easy-ways-to-save-money-today">73 Easy Ways to Save Money Today</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-biggest-ways-procrastination-hurts-your-finances">7 Biggest Ways Procrastination Hurts Your Finances</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance debt emotional spending fear of markets gambling giving money impulse shopping indulging investing overspending saving spending Wed, 21 Jun 2017 08:00:16 +0000 Tim Lemke 1966173 at http://www.wisebread.com