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.
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.
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
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
you need some ideas or support,
join the discussion boards in
Community or learn about CareOne’s
various debt relief plans.
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
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
select a health plan. Navigate
the world of health care plansand
learn which one best fits your
situation. Also, read up on the
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
How to buy
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
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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