The Importance of Budgeting, No Matter Your Age

No matter where you are in life, you can benefit from an evaluation of your finances. Even if you’re financially stable, there’s a definite benefit in setting up some type of budget. You never know when your circumstances may change or if you might suddenly want to use extra money toward an emergency or to splurge on something. Budgeting helps you keep track of how you spend your money and make sure you aren’t wasting it on anything unnecessary. With budgeting, you’ll gain greater control over your life and be able to prioritize your spending.

You could lose your job

I’ll start with the worst case scenario; you could be financially stable and not have to worry about money, but then you (or a spouse) could suddenly lose your job and realize that you have to make do with a lot less money. With budgeting, you understand how to live within your means and you’ve had time to save up extra money. Avoiding overspending helps discipline you, especially if money is scarce at times.

You can save up for big purchases

The better you budget, the more money you’ll have to save up (if you have expendable income that’s not going toward living expenses or debt). Avoiding overspending allows you to save money for larger purchases, like a vacation, a house, or even simply your future. After creating a budget, if you find that you have extra money, consider putting as much as you can toward a retirement fund if you don’t already have one.

You can quickly pay off debt

As you cut out overspending, you can put extra money toward debt. While you should also regularly be saving money, it’s almost equally important to pay off your debt as fast as possible. If you find that you have extra money, consider paying more on your debt each month. You’ll save interest and also have that many less payments to worry about.

You figure out what’s most important

When you start examining your budget and decide where to cut costs, you begin to realize what’s important and where you can avoid spending money. Maybe you have monthly subscriptions for services or products you rarely use. Maybe there’s another service you could use that would cost less. You might spend considerably more than you realize. It’s important to take an honest look at your spending habits and evaluate what matters most. This step allows you to stop wasting money and actually put it toward what matters.

You have more control

Maybe it doesn’t feel like it or maybe you feel overwhelmed by monetary concerns, but once you start budgeting, you’ll feel like you have more control over your life. Being financially stable frees you up to make decisions instead of always feeling like you have to worry about bills or when you’ll get your next paycheck. Gaining control over your finances leaves you feeling much more confident and reassured.

How to Teach Yourself About Investing

Far too many people are unaware of the basics of investing, even though it’s one of the best ways to build your wealth. Public schools do not teach anything about it and if you go to college, you really only learn about investing if you take business or finance courses. This lack of knowledge leads to people shying away from investing and relying on a steady and reliable source of income. They often view the stock market as a way to simply lose money, especially if they lack basic knowledge about investing. This viewpoint is completely understandable, but not one you should subscribe to. If you know nothing about investing, it’s never too late to learn! Here are some ways you can teach yourself more about investing and get ready to start a portfolio of your own!

Take a look at your finances

The first step you’ll need to take is examining your finances and determining how much money you want to put into investments. If you’re heavily in debt or have no savings, you should take care of those issues before attempting to invest large amounts of money. Get an accurate picture of your finances so you know how much you have available to invest.

Learn the basics

When you first begin looking at everything that goes into the markets and investing, it can feel overwhelming. People spend years trying to learn the secret to investment success. Instead of feeling intimidated by these approaches, simply start by learning the basics of investing. Learn what different terms mean and how creating an investment portfolio works. But, don’t take too long; the sooner you begin investing, the better!

Check out online resources

After you feel like you have a basic understanding of investing, it’s time to start learning about the different approaches people take and cultivate a deeper understanding of the market. A great place to look is online, because there’s a seemingly endless amount of online resources, such as ebooks, blogs, podcasts, and many websites that offer expert advice. Check out the credentials of a source before believing everything you read, but most information on investing can be useful, even to just teach you what not to do.

Find experienced people

You might know someone who’s a financial advisor or who spends a lot of time following the market and knows about investing. These are the people you should talk to. Even if you don’t personally know anyone like this, you can certainly find a forum or website where you can chat with someone who can give you actual advice about investing.

Set your goals

Before you actually start investing, take a bit of time to set your individual goals. How much money do you want to invest? Why are you investing? What return do you hope to see? People invest for different reasons, not simply to generate wealth. Once you’ve decided what your individual goals are, you can start investing.

Start small

As you begin your journey as an investor, remember to first start small. You definitely shouldn’t take your entire savings account and invest in high risk stocks; use a smaller, manageable amount first and invest smart. Research the best types of stocks and start out with moderate risk.

Easy Ways To Save A Lot Of Cash

Do you feel like you are always strapped for cash? It seems that a lot of people feel that very same way in today's world. There are just so many bills to keep up with and ways to spend our hard-earned money that it becomes easy to fall a little short on extra cash. Everyone wants to know what some simple ways to save more money are so that they can bank some extra cash.

Check Out Coupon Sites

The Internet provides plenty of ways to spend your money, but from time to time it also produces ways to save some of that cash as well. Coupon websites are plentiful and often feature some of your very favorite products at a discount. If they have a coupon for something that you already plan to purchase anyway, why not take advantage of that opportunity?

Even if you do not go directly to a coupon website, at least check to see if there are any coupons for what you plan to buy in that moment. Places like pizza restaurants and the like frequently have coupons available for the taking for those who are ordering delivery.

File Your Tax Return

The vast majority of us are required to file a tax return every year by law. For some reason some people like to drag it out. This might make sense if you are one of the unfortunate ones who has to pay money into the government. However, if you someone who is expecting a tax refund, why would you wait even another minute to file? As soon as the new year rolls around you can file your taxes and start having that refund processed. The sooner you file, the sooner that money can get to you.

Buy In Bulk

A lot of retail and grocery stores count on you buying items in just the quantity that you need at that very moment. If you indulge them in doing this, then they are the ones who really benefit. Stores can mark up smaller quantity items a lot more than what they would sell the same item to you for in bulk.

Bulk purchases means fewer trips to the store (less temptations to buy more things!), and you get a better price per unit when you shop this way. Check out the price comparisons by either doing the math on the per unit price for yourself, or check the price tags to see this broken down for you on many items in many stores. The difference can be truly astounding.

3 Awesome Finance Podcasts

If you’re going to be in finance, you’re going to have to read. A lot. As a student, I am inundated in fundamental texts on a daily basis, but textbooks set aside, there is just a lot of reading that goes into the job—pouring over reports, staring at data to identify trends, drafting up proposals and strategies—the works. That’s why I appreciate being able to approach learning from a different tac. The tac of podcasts. Here are four of my current favorite finance podcasts. If you have recommendations others than the one’s I’ve listed, I’d love to hear your thoughts below!

Planet Money

If you’re going to write a blog about finance podcasts to listen to, you would be remiss to not include Planet Money. It’s an NPR production, so you can bet that it dives in deep, while also still being approachable.

For the full blog, go to NicholasFainlight.net

The Holy Trinity of Stock Trading Apps

Ten years ago, no one would have imagined that it would be possible to manage you stocks from nearly anywhere with the help of your phone. Today, mobile trading is a very convenient way to constantly keep an eye on market prices, and even buy and trade. Although there are a lot of great apps out there, I've yet to encounter one app the encompasses everything it takes to be a successful mobile trader. However there are several apps that when combined together make for a mobile trading force of Megazord proportions. And all of them are 100% free.

Robinhood

Robinhood removes the barriers of entry that would make young traders like myself unable to participate. It's the Venmo of the trading world...

For the full blog, go to NicholasFainlight.net.

How to Save Money as a College Student: Books

Once you look back on your college expenditures, one of the greatest costs you will find will be books. Books are expensive. Nearly every course you take will require you to buy books in some sort of capacity, and left unchecked, you will find these expenses eating into your savings/food/beer money real quick. Here’s a look at several ways on how to cut back on the cost of books.

Use Your Library

Your campus library is an amazing resource. Make the most of it. Although it might be tough to find a required course reading at the library, you might have some luck. There are a number of times where a professor has recommended extra reading and I’ve been able to find just that book in the library….

For the full post, go to NicholasFainlight.net.