Blogs
Jul. 07, '23: What should I do about my student loans?
With the news that we are all maintaining responsibility to repay those big loans we took out back when we thought Vlad was cool, I'm sure some of us feel as lost as we did back then. That's okay.
Sep. 29, '22: Emergency Fund 101
Building a solid financial foundation is key to building a beautiful life as you grow.
The question is, how much is enough of a foundation? Typically you only need to save your "Needs" category of your expenses. Recommendations vary along your stage of life and your risk tolerance. If you're single, in your early twenties, and have no mortgage, you might be able to settle for three months or so of your "Needs" expenses in your emergency fund. You'll probably want more than three months of your "Needs" expenses if you're married and have a 30-year fixed-rate mortgage and grandkids.
An emergency fund is cash you can rely on to get you out of unexpected situations, like getting laid off from a job, car repairs, housing repairs, etc. We calculate it using your basic monthly "Needs" expenses to save enough to keep you going until you can build the fund back up again.
Sep. 25, '22: If you can put a lump sum of $1,000 away for ten years, generally speaking, invest it.
When the monthly debt payments compared to your income are high, or the interest rate is high, then paying debt off as quickly as possible is a great idea. When the interest rate on the debt is less than 6%, and the monthly debt payments to your monthly income are beneath 36%, then invest your dollar.
Let's run through an example, shall we? My student loans total $24,859.79, so to pay them back within ten years draws on my debt-to-income (D/I) ratio.
If I accumulated $1,000 from cutting back on big purchases, eating out, and vacations, I could explore a few options to put it to the best use. Most of the time, the possibilities get boiled down to two streets: I could invest it in a tax-advantaged account (401(k), IRA, HSA, 529, etc.), or I could pay down my debt.
Sep. 21, '22: "What's in my wallet", you ask?
“When it comes to credit cards, how do I know how many or what type I should have?”
Right now, I use two cards; I have five cards in my name. I might add another to the list.
People use several strategies to determine which credit cards they want. Some people will sign up for one, complete the introductory offer then drop it when they collect the payout. Some will have certain cards they only use for specific categories. I am a bit of both.
Sep. 17, '22: What makes up a FICO score?
Whether you know it or not, the secret sauce that unfortunately rules your life.
Do you know the muffin men who go by Fair and Isaac? No? Fair and Isaac had a company called Fair and Isaac Company, aka FICO. These two chaps were the first ones to popularize mathematical logic for evaluating an individual's risk in unsecured lines of credit.
FICO scores ruled the financial credit evaluation world for a bit, but they are starting to slow down. Some glaring reasons may help you understand why they were not equitable, although they may have been widespread.
Sep. 13, '22: Credit Cards; Fee vs. Free?
Credit cards with annual fees have typically been ushered out the door as a sweeping lousy idea. In reality, it depends on your spending habits (shocker).
Some of the perks offered can subsidize your spending habits without ushering you into new wasteful spending habits.
The only thing that matters is your current spending habits; before I get off my soapbox, I'll explain why this can help you get some perks for free!
Take the example below:
Sep. 09, '22: I've spent way too much this month.
How can I save for a house if I'm spending my money on weddings?
In four weeks, I've attended three different weddings, all three with a date. They're all my cousins on my dad's side, but T.G., none of them are marrying my dad's cousins. We're not that type of family.
Weddings are a great time to celebrate, as anyone knows, but they're also super expensive. I chose the cheapest (but still safe) lodging option for these three weddings. However, even only paying for the lodging and the gift, the total still came dangerously close to $1300.