How are you doing with your finances? Do you consider yourself financially stable? If you do, then good for you. If not, you are not alone. Most people are having problems with money because only a few are financially literate. Most of us have to learn financial lessons the hard way. Just imagine all the things that you could have done differently if only you know a thing or two on personal finance.
Did you know that the number one cause of stress is money? According to several studies, more people worry about money compared to health, family, work or relationships. This is true regardless of age, citizenship, gender or educational attainment. Although financial stress is expected among low income families, it is puzzling to note that even high income households and highly-skilled professionals still do worry about money. A diploma on a prestigious university is never a guarantee of wealth.
Education is one of the important things that parents strive to be able to provide for their children. In school, children are rewarded with praise and awards when they get high grades in their subjects and they are envied for their intelligence. Even as adults, intelligence is highly valued in job applications.
Putting your money on a low interest savings account is not such a good idea especially if you have big financial goals such as buying a house, sending your kids to college or saving for retirement. The only way to get more money is to make your money work for you by investing it. Investments will generate more money for you in the future through interests and price appreciation. In other words, you invest to create wealth.Read More »
We are constantly dreaming and making wishes for what we want our future to be like but most of us procrastinate when it comes to actually writing down our plan for how to achieve our goals. We all know where we want to go but we don’t have a plan on how to get there. This causes us a lot of anxiety in our everyday lives.Read More »
Parking your money in a regular savings account is never a good idea. Warren Buffet, one of the world’s most successful investor of our time has this to say about investing in cash:
The one thing I will tell you is the worst investment you can have is cash. Everybody is talking about cash being king and all that sort of thing. Cash is going to become worth less over time… Cash is a bad investment over time.”
Have you ever wondered whether having a credit card is good or bad for you? For most newbies in their first jobs, getting a credit card is a sign that they are finally independent! It is a cause for celebration and may cause many to eagerly take the irresponsible first swipe.
According to statistics, out of every 100 persons aged 65, 96% are either dead or dead broke, 3% are comfortable and only 1% are wealthy. Because of this, many retirees continue to work long after their retirement age. Others are dependent on their social security payments, which are never enough; while some depend on their children’s money or support for their day-to-day expenses like food, utilities, transportation and maintenance drugs. Most problem arises when there is an unexpected medical emergency.
Understanding basic money terms should be your first step towards financial literacy. It would be very difficult to start learning financial literacy, much more overhaul your financial life without understanding the basics. Just like reading for example, you won’t be able to learn how to read without knowing the alphabet.