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Sinking Funds for Budgeting: How to Prepare for Irregular Expenses
You took hours on your spreadsheet and finally created your perfect budget. But you may have forgotten just one thing… Sinking funds! Having the right sinking funds is the secret to staying on top of your budget and afford buying anything you want! What Are Sinking Funds? A sinking fund is a budgeting strategy where you set aside money over time for future expenses. It’s a process where you budget a little bit each month into your sinking fund so you have the full amount ready when the expenses come due. Sinking funds help make budgeting easier, avoid getting caught short, and reduce financial stress. In corporate terms (Investopedia), sinking funds…
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Expecting the Unexpected: Every Financial Plan Needs an Emergency Fund!
Life is unpredictable, and an emergency fund can help prepare you for the worst that life throws at you. Whether it’s unexpected medical bills, car repairs, or a sudden job loss, having an emergency fund can help you weather the storm and avoid financial hardship. Creating an emergency fund is the very first step in financial planning. Here’s why you should have an emergency fund and the do’s and don’ts after you set up your fund. Why should you have an emergency fund? 1. Avoid Debt Without an emergency fund, you may be forced to rely on credit cards or loans to cover unexpected expenses. This can lead to high-interest debt…
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6 Limiting Beliefs about Money Keeping You Poor
Limiting beliefs are those thoughts and attitudes that hold us back from achieving our full potential. In terms of money, limiting beliefs can be the negative thoughts, feelings, and perceptions that hinder our ability to achieve financial success. Here are six common limiting beliefs about money that you need to shed in order to find monetary success. 1. The pursuit of money is selfish I think this belief stems from another limiting belief of “Money is evil.” The argument is that the capitalistic economy we live in today encourages people to step over others and exploit those who are vulnerable in order to make money. Although there are many people…
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13 Personal Finance Tools for Financial Success in 2023
When I first stumbled upon the world of personal finance, I was overloaded with information. I saw ads everywhere recommending different finance tools, and I had no idea which apps would be a waste of space and which apps would actually help me get my finances in line. Here are the top 5 tools I would recommend for any personal finance beginner to help you get started in your personal finance journey. Categories of Different Tools? Money Management Software Price Comparison Tools Deals & Cash-back Informational Sites & Books Investing Sites & Apps Documentation Tool to Track Progress 1. Money Management Software “What gets measured gets managed.” The first step…
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What You Should Know About Your Credit Score
A key element that separates the rich from the poor is that the rich can invest and leverage other people’s money at a low-interest rate for their benefit. On the other hand, the poor and the middle class often just use their own money or borrow money at an exorbitant rate from credit card companies or predatory organizations such as loan sharks. There is a reason why people constantly emphasize the important it is to have a credit score and that you should start early when it comes to building credit. To help you be successful financially, you need to understand: What is a credit score? When do you…
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