Money Plan SOS Personal Finance
Helping you Pay Attention, Not Interest™
Built right into YNAB is a little calculator that helps you do math but also helps you input a monthly savings goal for non-monthly expenses.
Example: You pay $363.18 in car insurance every 6 months.
Using the calculator in the drop-down menu of the “Outflow” column calculates the monthly savings goal and inputs it into the budgeting cell automatically.
Jeff Rose has started another movement. First it was Roth IRAs, now it’s Life Insurance.
What is a Movement?What he has done is quickly rally over a hundred bloggers and media writers behind a singular cause: Educate the population about a specific financial subject in mass. With that many posts all being released at the same time it would be hard to miss.
If you want to learn more about life insurance from over 100 bloggers then go to http://www.goodfinancialcents.com/life-insurance-movement/
In Episode 72 of the MoneyPlan SOS podcast I talked about the math behing Whole Life and Term Life insurance. Here I submit to you a video explaining that same thing. Adults, share it with your adult children. Young adults, share it with your parents. It might just change your life to be insured!
Jeff was a guest on the MoneyPlan SOS podcast when he was heading up the Roth IRA movement.
If you want to learn more then check out SteveStewart.me/sos056
In personal finance, net worth (or wealth) refers to an individual’s net economic position; similarly, it uses the value of all assets minus the value of all liabilities. Sounds like something you need an accountant or Financial Planner for. But you really don’t need to make it complicated and learning how to create one is super-easy.
The OWN side: Create a list of everything you own. Jewelry, stocks and bonds, investment and retirement accounts, collectibles, vehicles, house(s) and real estate. Anything you could sell, put it on this list. How accurate you want your Net Worth Statement to be will dictate how much stuff you put on this list.
For example: I don’t include household belongings in our Net Worth Statement, just our investment and savings accounts, vehicles, and a little for my wife’s jewelry. There isn’t much of a market for vinyl records from the 80’s so I don’t include them. This also decreases the accuracy of my Net Worth calculation, but I can do it quickly without much research and calculation.
The OWE side: Create another list of anything you owe money for: Credit cards, student loans, family loans, payday loans, car loan, mortgage and HELOCs. Do not include the next lunch that you and your friend go out to because it’s “your turn”, just make it a list of debts.
Here is a short, easy to follow video explaining the rest of the process
http://youtu.be/8ZLsdileyvM
It’s nice to know where you stand financially. Are you doing well? Is your net worth at least six figures or is it negative? What financial moves could you make to quickly change the total? Call me today and we can work on growing YOUR Net Worth!
“No” is a possible answer and can be used to get a bargain. It’s not manipulative and helps you to find a middle ground between you and the person you are negotiating with.
I tell my story of how I saved $10 a day while renting a Dodge Charger!
Teaching Financial Literacy is one of my favorite things to do. GoBankingRates.com asked me to be a part of their Financial Literacy Tag video series so I had to say “Yes”.
They wanted an inspiring story or example of how learning about financial literacy changed my life. I don’t really have a great story but I did want to share my thoughts about what a brilliant man once said:
$100.00 earning 12% annually (about 1% a month) earns $1.00
($100 x 1% = $1.00, turning $100.00 into $101.00)
Leave the $101.00 to grow another 1% = $1.01 in growth
($101.00 x 1% = $1.01, turning last month’s balance into $102.01)
The dollar that grew last month grew another penny this month.
Add another $100.00 to the first month’s account and it grows another $1.00 as well
(First month’s continued growth balance $102.01 + this month’s $101.00 = $203.01)
The balance from month #2 grows another 1%, add another $100.00 to it
($203.01 x 1% = $2.03, new total $205.04). Add $100.00 again ($100.00 x 1% = $101.00). The total at the end of Month #3 = $306.04
After 10 years you would have put $12,000 into the account = $23,233.91
After 20 years your account would grow to be $99,914.79
In 40 years you would have put $48,000 into the account but have over $1,000,000!
That’s amazing! That’s Compound Interest
While many people believe you can’t get 12% in the market, I have absolute proof that this magical formula can save you more than that every year – EVEN IN A BAD ECONOMY!
Exchange hotel and airline reward points for gift cards. Use the gift cards to help with monthly expenses, freeing up money to be used/saved for vacation.
Don’t have enough points to redeem for anything? Points.com allows you to exchange a variety of travel reward programs for other programs.
Watch other tips for saving money to go on vacation:
https://moneyplansos.com/vacation-savings-tip-01
https://moneyplansos.com/vacation-savings-tip-02
https://moneyplansos.com/vacation-savings-tip-03
https://moneyplansos.com/vacation-savings-tip-04
