Several years ago, I was pretty inexperienced when it came to managing my money. It took some cluelessness about enrolling in the 401(k) at my first job for me to realize I needed to start learning what to do with my money.
I know you hear it at the start of every year: you need a budget! The nagging gets tiring, even if you know or think you need one. Budgets have a bad connotation. They’re restrictive, inflexible, complicated, time-consuming, and difficult to keep. They don’t allow for any fun. And how are you supposed to know what will come up in the future? Your income and expenses may fluctuate.
Is one of your goals to spend less and save more this year? That’s definitely one of my goals. Did you know that even just a few years ago, one of the hardest things for me to do was cut back on my spending? I mean unnecessary spending of any sort. You know, shopping as a hobby, a pastime, a salve, a stress reliever, a fun get-together, a pick-me-up, an emotional crutch, or an impulsive behavior.
“Hello. This is Michael from the IRS. I’m calling to inform you that you owe $15,000 in back taxes. This is your last notification.”
“What do you mean I owe $15,000? What do I do?”
Does this exchange sound familiar? You’ve probably received a call like this at some point in the past few years.
During one March a few years ago, I didn’t spend any money on fun and entertainment. I have an entertainment category in my budget, but I just happened not to dip into it. When I reviewed my budget at the end of the month, I was so happy with my lack of spending that I committed to keeping it going. You can already see where this is going, huh?
Have you heard of Rich Dad Poor Dad? If you’ve read some financial books or even read lists of must-read financial books, then you probably have. The book is a best seller. It’s been reviewed hundreds of times. It’s considered a staple in the financial literacy canon. So what can I add? Well, I’m going to take an unpopular stance
What would you do if your fiancé came to you a month before your wedding and revealed that he had $370k of debt?Sadly, this is a true story. I was browsing the boards of a wedding website a few months ago when I read this post. The woman’s fiancé told her about his $370k of debt only about a month and a half before their wedding.
Several years ago, I realized that I didn’t know enough about how to manage my money. I budgeted and put money in my 401(k), but I knew that there was still so much out there I didn’t know. I visited the library one day and browsed the section on personal finance books. I picked out a few I thought were introductory level, took them home, and started reading.
If there ever were a time to feel like spending money, it may be with the arrival of your first paycheck. Now that it’s July, graduation season has just finished. If you’re a lucky new grad, you have a job lined up or one on the horizon. And with that new job and those first few paychecks may come the urge to spend on what you couldn’t afford before.
Do you ever come across something that sounds a bit cheesy but turns out to be pretty awesome? Today I want to talk about the personal finance book I Will Teach You to Be Rich by Ramit Sethi.
If you ever wanted to learn how the wealthy become wealthy, this book may give you the best answers you’ll ever get. Thomas J. Stanley and William D. Danko, authors of The Millionaire Next Door, spent twenty years researching how people become wealthy.
Earlier this week I posted about the 50/20/30 budgeting method complete with free budgeting calculator. If you calculated your percentages and decided that your spending and savings numbers are not what you want them to be, don’t worry. You’re in the same boat as many other people, but you have the awareness and motivation to change that.
I remember back a few years ago when I started my new job and decided to create a new budget using an Excel spreadsheet. I thought that there must be a better way than what I was doing. I was estimating amounts for each of my budget categories and then trying to track everything in and out month after month. Not fun! So I started researching budgeting methods and I came across one called the 50/20/30 budget.
With 2017 in sight, now is the perfect time to get personal finances in order and start the new year off right. A great place to start is to figure out your personal finance numbers. But with so many numbers and terms out there, it’s easy to get lost trying to figure out what you really need to know. What numbers are the most important? Here’s are 6 numbers to know to help you get started.