Al-Huda
Foundation, NJ U. S. A
the Message Continues ... 6/182
Newsletter for January 2017
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Things You Should Know about Personal Finance
The saying, “You can’t teach an
old dog new tricks” is pure
myth. After all, you probably
taught an old dog or two how to
play dead or jump through a
hula-hoop when you were child,
right?
Well, just like our furry friends,
humans are never too old to
learn new things either, and
that fact is precisely why
President Barack Obama declared
April as National Financial
Literacy Month. His hope
is that Americans will commit to
learning how to establish and
maintain healthy financial
habits.
To get you started, here are 10 topics
you should learn to boost your
financial literacy:
How to
budget. The
best way to understand your
personal financial situation is
to calculate how much you earn
each month, and where
all your money goes (i.e.,
how much you spend on recurring
bills, entertainment, and living
expenses such as housing, food,
clothing and utilities). Use
CareOne’s online budgeting
tool to enter all
your income and expense
information in an easy-to-follow
format. Then, track your
expenses and don’t spend above
your budgeted amount. Keep
your budget realistic and
you’re more inclined to follow
it.
How credit
works. Credit
is a contractual agreement in
which a borrower receives
something of value now and
agrees to repay the lender
later. It often materializes in
the form of credit cards, or
loans for a car, home, or
education. But there are costs
associated with using credit,
so it’s important to compare the
cost of various credit options
with the actual features that
come with the credit offering.
Also, you must be responsible in
how you use credit so that you
don’t accumulate more debt than
you can afford to repay.
How to
check your credit report. Maintain
good credit health by verifying
the accuracy of your credit
report regularly. Request an annual
free copy of
your report and ensure all the
information listed is accurate.
If it’s not, take action
now to correct it. If you have
bad credit, only time and
consistent payments can repair
it, so go easy on your spending
and make timely payments against
outstanding debts.
How to
attack debt. View getting
out of debt as
a long-term goal, but set
smaller milestone goals that you
can celebrate achieving, such as
paying off each individual
creditor. If
you need some ideas or support,
join the discussion boards in
the CareOne
Community or learn about CareOne’s
various debt relief plans.
How to
choose a debt relief provider. Sometimes
the best way to address your
debt problems is to partner
with a reputable debt relief
company, such as one of
the providers of CareOne
Debt Relief Services. A
reputable provider should have a
solid record with the Better
Business Bureau, multiple
options to help you get out of
debt, and a relatively long
history of helping people get
out of debt. The provider should
also have the experience,
resources, and certified
counselors needed to work with
you to help
pay off debt and
turn your financial life around.
How to build
a nest egg. While
most Americans lack a formal
savings plan, you don’t have to
be among them! Instead, identify
ways to build up your savings
reserves so that you can endure
tough economic times without
amassing big debts. Start saving
as soon as possible – even if
only a small amount – and make
saving a regular part of your
life. For example, set up
automatic deposits from your
paycheck into a savings or
retirement account.
How to retire comfortably. Calculate
how much money you’ll need to
live comfortably and
learn which financial resources
can help you get there. Options
range from basic savings
accounts and certificates of
deposit, to 401(k) and pension
plans, mutual funds, stocks,
bonds, and more. Boost your
knowledge about these products
and seek help from a certified
financial planner when
necessary.
How to
select a health plan. Navigate
the world of health care plansand
learn which one best fits your
situation. Also, read up on the
new Affordable
Care Act to
learn about changes stemming
from this health care reform
legislation that could lower
your costs and make care more
accessible. Additionally, reduce
your personal care expenses and
participate in your employer’s health
spending account plan, if
available.
How to buy
insurance. Many
people don't know what kind of
insurance to buy or how much
their policy should be worth.
But if you have a spouse who
doesn’t work or other family
members who rely on your
financial support, you need to
purchase enough life
insurance so
you don’t saddle your loved ones
with bills and expenses they’re
ill-prepared to pay once you’re
gone. Be sure to think well
beyond your funeral and burial
expenses, too. Your insured
amount, if you can afford it,
should be enough to cover
existing and future debts,
college tuition costs for your
young children, living expenses
for your spouse, and more. In
addition to life insurance,
consider other types of
insurance that protect your
health and possessions like your home or automobile.
The importance of an estate
plan. You
might not think you have enough
assets to warrant an estate
plan, but creating a will
ensures your wishes are carried
out after you’re gone. Your
needs will vary based on your
assets, marital status, and
whether you have children. Learn
how to prepare a will, and
identify personal belongings or
monetary assets and insurance
benefits you want to gift to
certain people.
Once you have these topics under your
belt, commit to never stop
learning. New financial tools
and topics are always emerging
and there are endless
opportunities to continue
improving your financial
fitness. Sign up for a class,
check out books at your local
library, or read more on
CareOne’s online Article
Library. As you learn,
look up any unfamiliar terms on
CareOne’s online financial
glossary.
And, if you ever need a refresher
about the importance of
continued education, take some
inspiration from Nola
Ochs, who earned her
bachelor’s degree when she was
95 year old. Ochs clearly proves
that you’re never too old to
learn new things.
If you
liked this you may also like:
·
Secured vs. Unsecured
Debt...Know the Difference
Most people have a combination
of secured and unsecured debt;
when faced with financial
hardship understanding the
difference is important.
·
The Dirty Dozen Credit Card
Traps
Does the credit card industry
profit mostly from interest
rates? Yes. But wait, there's
more...
·
Understanding APR Will Help You
Understand The Cost of Credit
The cost of credit is not as
easy as simply knowing the
interest rate. Learn how to
calculate the APR to make good
credit decisions.
·
10 Ways to Get out of Credit
Card Debt
When it’s so easy to whip out a
credit card every time you want
to buy something, it’s no wonder
so many Americans are in debt.
In fact, according to
Creditcards.com, the average
credit card debt per household
with credit card debt is
approximately $15,000. Add in
high interest rates on owed
balances of around 14%, and
consumers often find themselves
struggling just to make minimum
monthly payments, let alone pay
down any principal.
·
Proven Credit Card Debt
Solutions to Suit Your Needs
Consumers seeking credit card
debt solutions have various
options, from balance transfers
and debt consolidation loans, to
professional help from a debt
relief company if the problem
feels too overwhelming to
overcome on their own.
|
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