Tag Archives: money advice

Best Money Advice to Get You on the Road to Financial Freedom

Best Money Advice: Road to Financial Freedom | Money Savvy Living

 

April is Financial Literacy Month, so to highlight the importance of personal financial knowledge, I have gone to the experts for their best money advice.  Financial literacy doesn’t have to be confusing or complicated.  Anyone is capable of getting a handle on their financial situation—with the right tools and information.

To start out with, here is my recommendation:

Understand the Time Value of Money

Save.  Start saving early… the earlier the better.

Whenever you receive money, whether it be your salary, a commission, bonus, or gift, save a portion of it.  If you can start saving in your twenties, you will be much further ahead by the time you reach retirement than the person who started saving in their thirties… or forties.

This is called the time value of money.  What it means is that the longer you have money saved away, the more time it will be able to earn interest.  Each year that your money is earning interest, the account if growing and new interest is then earned on the new higher principle balance.  This compounding effect is the reason that the person who starts a retirement account in their twenties will end up with a much bigger nest egg than the person who starts saving for retirement in their forties.

 

The Importance of Saving Now

Rachel Fox, teen actress turned financial expert, and creator of Fox on Stocks, has some good advice for millennials: “Save more money now to pay your future self.”

 

Live Within (or Below) Your Means

Rich Goodall, of Cash Savvy Tips, says “When it comes to budgeting, the trick is to aim BELOW your means, not just within it. That way there will always be money left by the end of the month and will soon turn into savings.”

 

Find Your Financial Balance

Heather Shue, of Simply Save, a blog dedicated to saving money and simplifying life, advises on retirement:  “A long life with retirement is not a guarantee. Personal finance is all about finding a balance between planning for the future and enjoying the present.”

 

Invest in Quality

Hannah McKnight Rinaldi, frugal living blogger and author of Eat, Drink, and Save Money reminds us to spend money wisely, “Don’t get caught up with spending money on trends. Invest in good quality items that you love that will last a long time.”

 

Create a Plan to Get Debt-Free

Jamie Jeffers, of Medium Sized Family, talks about how to reach financial freedom: “If you’re in debt, it’s time to make a serious plan to pay it off. The longer you wait, the more it will hold you back. Get mad, make a plan, and attack it! There’s freedom waiting on the other side.”

 

The Power of Payments Early and Often

Erin Elizabeth Beaupre, the Stay at Home Yogi, addresses the importance of getting out of debt and cutting down the effects of compounding interest, particularly regarding student loans (although this is good advice for ANY loan):  “If you have student loans – pay them EARLY and OFTEN. Don’t wait to start paying them down “just because” – the sooner you start, the sooner you will be out of debt! Throw extra money at them any chance you get. It all adds up!”

 

Diversify Your Income

Travis Scott, financial expert and creator of Stuff Parents Like, explains the importance of multiple income streams.  “We all hear you should diversify you investments, but I think the most important thing to diversify is your income. There is a reason the average millionaire has seven sources of income. Today it is easier to diversify your income than any other time in history.”

 

 

If you are just getting started, the first thing you need to do is put together your personal budget.  This will give you an idea of what money you have coming in and what you are spending it on as it goes out.

  • Create a budget—look at monthly income and expenses for your household. Figure out how much disposable income you have (the money that is left over after paying all your bills each month). This is the starting point, because you must know where you are if you are going to figure out how you will reach your financial goals. Click on the image below, or on this link, to download your FREE Money Savvy Living Family Budget:
Mone Savvy Living Budget printable

Share the Wealth Sunday Link Up {#9}

Share the Wealth Sunday | Money Savvy Livng

Do you have a great money saving idea—or want to hear what other people are doing to save money and still feel like they are living the good life—even on a budget? It’s that time of the week again: Share the Wealth Sunday Link Up time! I look forward to sharing (and learning!) many great money saving ideas again this week! Come visit us on social media and say hi! We’d love to get to know you more! It would be great if you would follow us too: Share the Wealth Sunday | Money Savvy Living

Hannah at eat, drink & save money | Facebook | Pinterest | Twitter | Google+ | Instagram

Lisa at Fun Money Mom | Facebook | Pinterest | Twitter | Google+ | Instagram

Gina (that’s me!) at Money Savvy Living | Facebook | Pinterest | Twitter | Google+ | Instagram

 

Suggested guidelines:

  • Link to anything that can save people money: recipes, DIY, crafts, printables, tutorials, or any and all personal finance/budgeting ideas
  • Leave up to three links that you have not linked up within the last six months
  • Leave specific links to posts (not your entire blog)
  • Do not link to any Etsy shops
  • Grab the Share the Wealth Button for your blog
  • Have fun! Check out the other great money saving ideas…and share/interact with as many as you can!
  • Follow your hosts on Facebook and other social media—we want to stay in touch!

 

Feature:

Share the Wealth Sunday 9 | Money Savvy Living 

East, Drink & Save Money: 20 Ways to Celebrate the Fourth of July on a Budget

Fun Money Mom: How to Pack Like a Champ for Your Big Move

Money Savvy Living: Major Credit Card Changes Coming, October 2015

Round Up:

Each week, I will pick a few awesome posts from the week before to share with you. That will mean additional exposure for your post and blog! Here some of my favorites from last week:

5 Things You Shouldn’t Say to Someone that is Paying off Debt  Getting debt-free does take a lot of hard work and sacrifice, and in this age of buy now, pay later, it is quite an accomplishment!

Budgeting Helps Couples Avoid Conflict  Talk about how you want to spend money as a couple, not with just individual interests in mind… great advice.

Copycat Starbuck’s Strawberry Frappuccino  Save a few bucks and make your own at home!

It’s Your Life Natural Living Magazine  Lots of great tips and advice!

 

Feel free to grab this 150 x 150 button and share on your page to let others know about this link up:

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Money Advice: From a Kid’s Perspective

Money Advice: From a Kid's Perspective

Money Advice: from an 8-year-old

 

“Out of the mouths of babes oft times come gems.” I think the old saying is quite appropriate here. I asked my 8-year-old son what he thought was good advice regarding money. He immediately came up with “don’t spend it on junk.” He took a bit longer to come up with the other two: “store it in a bank” and “give some of it to someone else.” But he did think of these on his own, without any help. I would have to say that he nailed it! I am pleased to think that at 8 years of age, he has a better understanding of personal finances than many adults do.

 

Don’t Spend It On Junk
Seems obvious, right? I think he probably gets the term “junk” from the fact that whenever we are at a store, if he wants to get a cheap little toy, I tell him not to waste the money on it because it is made so inexpensively it will just break– probably about 5 minutes after he starts playing with it. Junk. For adults, it is a bit different though, maybe we aren’t spending a couple of dollars on something cheaply made and easily breakable, but maybe, just maybe, we are making unnecessary purchases. I mean, how many times have you bought something that you really didn’t need? Maybe it was on sale, maybe it was even a great deal as an end-of-season clearance item, but you really didn’t need it or hadn’t even thought about buying it… but it was on such a good sale, you just couldn’t pass it up? Sound familiar? I know I have done this before. And all those little purchases add up.

 

Store It In A Bank
While my 8-year-old has a money jar that he loves to store all his money in from birthdays and Christmas, his advice to store it in a bank is right on target. Every time you get paid, put some money aside in a savings account and 401k or IRA. A savings account will get you through the unexpected expense times, or allow funds for family vacations, or even just give you a safety net for the unforeseen life event, such as an unexpected layoff from your job. But a savings account isn’t enough, you also need to store money in a retirement account. Start saving for your future NOW. The earlier you start saving, the better. The compounding effects of interest over time will greatly increase your account value.

 

Give Some Of It To Someone Else
I love that my son has a giving heart. It isn’t too hard to look around to find a local church or other worthy charitable organization that could do a lot of good with a donation. Not only does someone in need benefit, but the giver gets to experience the joy of giving and making a difference. “Give, and it shall be given unto you…” Luke 6:38

 

*Article also published on my Examiner.com page.