Believe it or not, credit scores are more tricky than a simple swipe of the card and payment at the end of the month. Everyday adults lose their job, or seem to be losing money, this article will benefit those and many more.
If you suffer from any of the financial problems, I encourage you to keep reading:
- Loss of job.
- Budgeting Money.
Inflation is a big aspect in all forms of money. When the price of things gets higher, the price of your money seems to lower no matter how much you seem to have. This makes investing in almost anything much harder than buying a bond and expecting cash later.
You have to see where you stand financially and think “If the price of food goes up tomorrow, will I still have money?” After you sort through the amount you have left over from bills and savings, you need to be sure to have extra in case of inflation.
Investing is a huge risk in all terms. Money can be lost more than it is gained and in some cases owned. Be sure to find a stock or bond you are familiar with and look into what you’re putting money towards before you start losing. Be sure that all your personal finances are caught up with before even thinking of investing.
February is Christmas time for adults. That big W2 or W9 forms start rolling in and people can’t seem to wait for the refunds to also.
Most people pay to have their tax forms completed by a company – this is fine but you should understand where that money you get comes from and just how much more you could be saving.
As the amount you get paid goes up so does your taxes, this is called marginal rate of tax and can easily be understood. You have to know how much money you want tax holders to take and how much money you want to keep with each check.
Sure that big old Tax Check is something to look forward to, but a couple hundred less and you could be saving double that throughout the year. The less money is taken out of taxes, the less you receive back. This works if your rate of pay is higher than average and will save you money in the long term per check.
Thinking of borrowing money soon for home, college, auto, or refinancing? Get smart before you make an application:
- View: smart financing guides in home, education, auto, and personal needs
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Speaking of big money, what about that 401k you have in the future? Is it looking bigger by the day or bigger by the year? You need to understand how much you make in order to know how much and how often to increase the percent amount taken from each check for your 401k plan.
Typically you should start at the lowest percent and with each raise or every year go up a percent until you are taking the maximum percent per paycheck out. This money will build over time and doing this will assure that you still have money for everyday finances.
Loss Of Job
Laid off, reassigned, terminated, or fired, another big F adult’s face in life. Budgeting money and getting fired are two of the same things – when one happens the other is essential.
If you were to lose your job today would you be able to afford the next 30 days of your life?
Most people would not know because they never think of this – but more than 50,000 people get fired each year and struggle to find work.
So starting today be sure to budget your money, this includes:
- Food: buy smart – not everyone drinks Fiji water.
- Habits: a pack a day does not keep the doctor away
- Necessities: can you live without electricity… or a new pair of shoes?
Everyday people face these issues, the big F of life, finances, and not many know what to do. I hope this article shined some light into your wallet and if you care for your friend you will shine a light in theirs – please share on Facebook or Twitter.
You won’t just be saving your money but you will be saving your friends money too. Who knows, after this they might even be able to pay you back that money they borrowed.