Are you looking at an individual retirement account (IRA)? Trying to decide whether to go with a traditional IRA or Roth IRA?
The type of IRA you choose can have a major impact on your family’s long term savings. Knowing the differences between the two is important to select the best one for you.
Anyone under 70 ½ and has earned income can contribute to a Traditional IRA. The deciding factor on whether the
I can’t believe it is Day 6 in our series and it is coming to a close. So know I get to ask you some questions:
All these can be difficult questions to answer and everyone will be different. And it doesn’t matter what you age is.
We have been talking about becoming financially free and it doesn’t stop at that point. You will want to look into the future and determine what you want in life. Your individual goals will determine the paths you take. I am not a financial advisor so I can’t tell you what you should do to get the things you want later. But I can say keeping money under your mattress or even in a savings account isn’t going to be you best choice. So reach out to your company and determine the retirement options they offer and take advantage of the 401K or other retirement options they offer. Don’t leave money on the table which we spoke about on Day 4.
Also, reach out to a local financial advisor to find out the various options you have to save. Yes the stock market has its ups and downs but we are not putting money there for tomorrow but years down the line. This will provide the best return for your investment and your financial planner will guide you along the way. Take my advice that even though technology is great and you can find so many online brokerage accounts to buy and sell stocks a financial planner is well worth the visit. The best ones will work with you to understand your goals, build a plan, and meet with you frequently to determine any changes and review your progress.
Remember, you are in control of your future!
We all want financial stability in our life and it’s an important one. A good way to get financial stability is to dig your way out of credit card debt. Currently credit card interest is high and you could be paying over 20% a year on your debt. If you are only paying the minimal payment it most likely will take over 30 years to pay it off. That is if you are not continuing to use your credit card.
There are multiple approaches you can take to pay off the debt whether you owe $5,000 or $50,000. Here are five tips to get you out of debt.
1. Know the amount you owe
Before you can start paying off the debt you need to take inventory into how much you owe at this point in time. This step is important because you most likely owe more than you think. You might be thinking you have $5,000 but in reality you have $9,000. So pull out your most recent statements and determine how much you owe.
2. Know your score
We all have a score! Remember, when you were in high school you got your GPA well now it is your FICO score. There are three main credit reporting agencies that collect your data that lender’s use with other information to determine whether to extend credit. Check out creditkarma.com where you can find your score and view your credit report for free!! The higher the score the better which means better credit opportunities. Once you know your score reach out to your credit card companies and try to negotiate a lower interest rate. Even one or two percentage points can make a big difference saving possible hundreds of dollars.
3. Determine your payoff method
There are two common credit card payoff methods. The first is to out all your extra cash into the highest-interest card while paying the minimums on the others -- which is the fastest way, overall, to lower your debt. Once the first card is paid off, you have even more extra cash, and should apply it to the card with the next-highest rate, and so on, creating a debt payoff snowball effect. A second strategy is to pay off your card with the lowest balance first while continuing to pay the minimums on the others. Though this is not the most cost-effective way to banish your debt, it's the fastest way to eliminate debt on a single card, and it can be a psychological boost to eliminate a bill for good.
4. Freeze the cards
Read fully on this one!! If you have multiple credit cards and paying off your debt you don’t want to be tempted in still using them. Keep on credit card that has remaining credit available for emergency use only. This would be a hospital visit and not the “I want to get my nails” done emergency. The other cards the best things to do are cut them up and throw them away. But another option is to fill a container with water, put the credit cards in, and then freeze. This way if you are tempted to use the credit cards you will have to wait till it thaws which will be time for you to possibly change your mind.
5. Know you progress
While you don't want to spend every day focusing and stressing over your bills, keep an eye on your spending. Go back every few months to check your progress. Remember the debt didn’t happen overnight. So it took you awhile to get into debt, and it's going to take you awhile to get out of it.
Today we are discussing something that can be summed up pretty short and sweet….PAY YOURSELF FIRST!!
This is going to be a major part in your success in financial freedom.
Over the past few days we have discussed the mindset of getting financial fit, creating a budget, and ways to save. Today we focus on what to do with those savings you are finding. I am going to be direct on this one you must pay yourself first! And no I don’t mean that cup of coffee at Starbucks but rather money savings.
One place to pay yourself is through your retirement plan. And don’t give me the - I have years till I retire. No put some into that account. Maximize your earnings especially if you company has a match (more to come on this topic in a couple days).
In your budget you should have found some savings for a rainy day. Don’t let that money just sit in the checking account tempting you to spend it. Rather open a savings account and direct deposit the extra funds to that account in each paycheck. When you don’t see the money in your checking or actual cash in your pocket you are less likely to spend it.
Try and get into the habit of putting money into your savings account right off the top. It is recommended to save 20% of your net earnings. But you may need to start off with 5% and work your way up.