I always love tossing around money matters and banking on articles that side with my opinion of money issues like this one I (Litsa) pulled from Marie Claire (April 2015). The list of facts and fiction finds were in alignment to many in my money book. I shared a few of my favorites. At forty, I look back and visually see how much money I’ve earned, wasted, saved, etc. You definitely live to learn but if you tread quietly in the wake of those that work to live, you’ll be able to discern how wealth is gathered and how giving impacts that wealth. As you fumble through your own money trails, review these facts and fiction notes:
FACTS:
- Start Now. It is never too late to start saving. Ever. Start with an emergency fund—expand your savings into a retirement fund (essentially a living fund). “The longer your money has to grow, the better. If at 25 you save $3,000 a year for 10 years, letting it grow at an 8 percent compounded rate of return until age 65, you’d have $472,000.”
- Have a $ backup plan. “Experts say to keep three to six months’ worth of cash in an emergency fund. If you can afford that, great, but if not, start by saving for at least two months. Keep the money somewhere you can access it in a day or two. No, not under the mattress, but in a savings or checking account.”
Fiction:
- Credit Scores. “Some people may have the impression that checking your credit score lowers it. Actually, checking your own credit score is considered a ‘soft inquiry’ compared to financial institutions checking it. Only the later can lower your credit score, and not enough to concern you.” (But remember not to live off credit……..)
- Borrow the MAX. Are you kidding me!?! Or am I the only one that stresses about borrowed cash. It is borrowed. Make sure you borrow only what you need—-and for what you can afford to pay back off one income not two!?! “A bank will typically offer the loan you qualify for, which may be more money than you need. It’s better to get a loan for the amount you actually need, according to Sharon Miller, head of national sales for Preferred Banking and Merrill Edge. After all, she says, “You never know when your money situation will change, so it’s better to be cautious even though we’re in a favorable borrowing environment right now.”
When learning about money—gather all that you’ve learned! Tips from your parents, red flags as you watch others handle money both carelessly (and carefully), the pros online like Dave Ramsey, Money magazine, or columns in your fashion magazines…..all the rules are wide open and everyone’s pocketbook is unique. Fund your life carefully by making your own fact/fiction graph. Then, proceed with a budget.
Work & invest to live & give graciously.
Marie Claire–Thanks for printing money articles that I can relate too! These facts and fiction notes were superb!
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