Save First, Spend Second
Key Takeaways If you want to build wealth successfully, you need to save first and spend second. The rule of thumb when it comes to saving is to save about 15%. If you spend first, you can get used to the niceties in life, and then it can be very hard to have to go […]
Half the Clothes, Twice the Money
Key Takeaways When we get ready for a vacation, we typically pack too many clothes and don’t budget enough money. When we make big purchases, we tend to forget all the associated costs that come with buying the item. If you plan in some extra money beyond the main cost of what you are purchasing, […]
Refinancing Your Mortgage – Hidden Benefits
Key Takeaways The benefits to refinancing your mortgage are savings on interest over time, getting rid of Private Mortgage Insurance (PMI), receiving cash for the difference, and using the savings from the reduced monthly mortgage to pay off other debts or save money. Consider refinancing if it takes 1-2 years to break even on the […]
Home Improvements – Now and Later
Key Takeaways Think about making your home improvements in terms of immediate, short term, and long term. Planning, budgeting and financing your home improvements are three important steps in ensuring you are able to make the improvements you need to enjoy your home, as well as to get a better return on your money when […]
The American Dream —Your First Home
Key Takeaways Before you embark on the dream of owning your own home, make sure there are no errors in your credit score or financial history. If you can’t come up with a 20 percent down payment, you can often still buy a home—but you’ll typically need mortgage insurance. Many new homebuyers underestimate how much […]
Know Your Loan Basics
Key Takeaways Four basic components of any type of loan are time, interest rate, loan amount and payment. Young adults tend to have four types of loans: student, auto, credit card and mortgage. A good credit score will give you much better terms on any type of loan—and save you thousands of dollars over your […]
5 Reasons Why Math Matters
Key Takeaways Even if you weren’t a math major, you need basic computational skills and an understanding of compound interest, inflation, amortization and taxes to be a financially responsible adult. As discussed in a previous post, the Rule of 72 is a powerful shorthand way of calculating how many years it will take an investment […]
To Rent or Buy?
Key Takeaways Owning a home gives you great peace of mind, but it comes with a lot more responsibility than renting. Budget 1 percent of your home’s value each year for routine maintenance. Using a rent versus buy calculator is a good start, but it won’t account for the emotional satisfaction (or stress) of being […]