Statistics shows that most american are 1 to 2 paychecks from being homeless. One to 3 Americans are in debt. 13 trillion dollars are sitting in US banks earning less than 1% and 63% of us can’t deal with an emergency bill for $500 so understanding personal financial management is in dire need
In this special segment we addressed:
1. How can I save when I live pay check to pay check?
- Identify your needs vs wants
- Shop smart
- Find ways in your existing budget to free up cash flow
- Small changes equal big money over time. Start by Saving small amounts
- Get another source of income if you really can’t save anything at all
2. List three things I can do with my tax refund?
- Save for your retirement, your kids college fund, set up your emergency fund
- Pay down debts or bills
- Invest money in a business or side hustle so you can make more money
3. How important is saving for retirement and how to calculate how much is needed for retirement?
- Saving for retirement is very important as there is no assurance that social security will even be around by 2034 nor will your existing retirement vehicles be enough to sustain you. To calculate how much you need in retirement take your annual income and multiple by 20 years. Once you know that # then you can begin to plan a effective strategy for your retirement
4. Budgeting tips for dummies -what percentage of my money should be saved? Attitudes to cultivate that will prevent me from spending my money until it’s done.
- Start by saving small amounts and automate the process. Save 10-20% of your income.
- A good rule of time is 50% should go towards your bills or living expenses, 30% towards your debt if any and or save and lastly 20% towards investment
5. Should I pay off my debts or save?
- Ideally both should be done simultaneously. However, again that can change depending on the size of your existing debts and interest rates
6. When is it okay to use other people money?
- When that money will make you more money. You always have to have your money or others people money make you more money
Comment below one take away you will apply to your life. I welcome the opportunity of working and helping you on your journey to financial freedom so be sure to schedule a time to speak with me for a complimentary financial check up, click http://odettaking.com/stackyourcoins