Personal Finance Money Management
Again I was going to snag another article from ezinearticles.com but wasnt satisfied with what I was finding on the subject. Ive been either too lazy or not in the mood to write.
Lately I have been thinking about my Retirement, which I realize now, at 34, how important it is. Some websites say by 2048 you will need at least $2 million because of inflation and the economy.
Retirement is really important because that will determine how you will live when you are 70+ and you really cannot put all your eggs in one basket. You cannot just depend Social Security nowadays. I think adding your jobs 401k, Roth IRA, possible Pension if you company has one and then Social Security if its still there when you retire, you may also want to do your own Savings on the side. The recommended amount is between $1-2 million dollars by the time you are 65. Retirement Calculator and What You Should Save By 35, 45, and 55 To Be On Target
The second most important IMO is having an Emergency Fund and have at least 6 months worth of living expenses in case the unexpected happens such as job loss, car breaking down, no place to live, etc…
This is for big things you are saving up for such as a vacation, a new house, a new car, a business, real estate investment, etc just so you wont dip into your Emergency Funds. I am currently saving with Digit and Capital One 360 as well as my local bank.
Stock, Bonds and Mutual Funds
Real Estate Investing
REI is also another way to diversify either flipping properties or renting out.
Childrens Savings Account
I think its important to establish a Savings account for your kids for when they graduate high school (18) or are age of 21. Personally growing up I didnt have one but I would like my daughter to have one.
Home Business/Make Extra Cash/Multiple Income Streams
Sometimes one income stream from a job is just not enough, especially as they like to say ALL the time, “in this economy”. I think starting a direct sales business (such as AVON, Thirty-One Gifts, JewelryinCandles etc), selling on eBay, Freebies or Freelancing your skills.
Keep Cash at Home
Important for any type of situation. You need to decide how much you should keep for an emergency plus extra for normal stuff. My top guess is three months worth of living expenses but in a safe place BECAUSE your assets as described above could freeze for any reason in any bank. If that happens then what will you do?
They suck, I know but its important to set aside at least 40-60% so you can fill Uncle Sams pockets and not get into trouble.
Gold and Silver
The dollar does not go far nowadays and does not hold much value and again its about diversifying.
Things to Keep in Mind when Managing Your Money:
Keep a budget so that you are able to save, saving is very important. Plus will help you determine where you are putting your money. The Envelope Method is really popular to help budget your cash.
Keep yourself updated on your Credit Score and Credit Report so you can prepare to get an additional credit card for emergencies or prepare to purchase a home.
Snowball your debt. Sorry I am not explaining but google does help with that 😉 If you have over $10,000 in debt I recommend credit counseling and debt consolidation.
Seek some sort of relief if available.