Financial Food For Thought On a Sunday
Producing a weekly financial related quick tip is something I strive to do each week on the music and money show.
If I can provide just once piece of information that helps empower someone to make better financial choices I am ecstatic!
Let's revisit a few I have shared in the past...
Retirement is not an age, it's a number.
Many people focus on retirement and think, when I'm 62 or 65 I will stop working and collect social security and live off my 401(k) etc, etc. Some people just say, I'm never going to be able to retire. I'll just work till I'm dead.
Neither of those statements are the correct point of view. We all have a particular lifestyle that costs a specific amount.
The question we need to ask is:
What financial number do I need to generate enough income to support my lifestyle?
Most people just assume a million dollars, but is that correct for you?
Some people may need more and some people may need less.
Figure out what you need financially, then you can figure out your number.
Check your credit report semi-annually
Given that this service is free once per year from each of the credit bureaus (TransUnion, Equifax, Experian) there is no reason to grab this report and give it a quick review.
It takes all of 15 minutes and is a prudent task to ensure there are no unknown credit lines on your account, thus allowing you to catch any potential fraud.
Additionally, you can also clean up your debt availability situation. If you see a bunch of credit cards that you don't ever use still sitting open on the account, may want to close them.
Track Your Net Worth
You only need to do it quarterly and once you have setup a spreadsheet or downloaded an app then it will only take minutes to update each time going forward.
So, why does it make sense to track your net worth? Simple - to create progress!
When you keep track of something you naturally work toward increasing or moving forward with it. Thus, by tracking your net worth you will make decisions that benefit growing your net worth, whether you realize you are doing it or not.
Also, like anything else - if you have no idea the chart you are coursing then you have no destination. That does not sound good for your finances.
Plus, when you see it start to grow quarter after quarter you will be more motivated to do things that will grow it more since you are "winning"at the net worth game.
Remember, we humans are emotional based creatures!
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Best Regards,
Disclaimer: All info in this post is my opinion and for educational use.
Free e-book: ScaredyCatGuide to Knowing What the Heck Bitcoin Is
Best Regards,
Disclaimer: All info in this post is my opinion and for educational use.
In my opinion money is maybe the most important thing in a world, although most of us want to deny it, mainly because we appreciate emotional and moral side way more. But, we have to accept that fact that without money we couldn't buy food, clothes and any other important things for life. Planning and tracking net worth as you mentioned is one of the easiest ways to spare your money well.
Saving money and planning will make your life easier, I'm talking about it from personal experience. Good post and I'd say in life if you do what you love and love what you do you achieved really much.
Cash rules everything around me, Queens get the money- Dolla Dolla bills y'all!
Wu-tang clan oldschool lol !
Nothing beats having a purpose. People who feel that what they do serves a higher purpose are happier, more motivated, and live longer.
Yea, i think you made good valid points there, retirement isn't about age but what arrangement made before retirement and how ones life is worth, so he could figure out how much is needed in getting everything done.
My husband, @freedompoint, and I joke that he has retired because he'ss chosen away from his "9-5" job and works for himself making custome knives and other homesteading odds and ends. But none if this would have been possible if we weren't debt free. I think the amount of money you have to give back, dramatically effects your retirement.
I think I accidentally retired just before The Great Rescission when all the jobs for disabled people began drying up.
I'm just lucky that I found the Bitcoin community.
Good reminders even for people in the know. Checking net worth and making yearly adjustments can keep your goals on line.
Good tips, I can barely keep track of everything. I should a list.