9 Principles Of Personal Finance Rules (Things School Didnt Teach You!)

9 Principles Of Personal Finance Rules (Things School Didn’t Teach You!)

What financial topics did you study in school was it about credit investing was it on money management we’re told by the outside world to go obtain an education and a job and everything will be fine but regrettably it’s a bit more complicated than that you need to know a lot more about money than what you will ever learn in school if you want to succeed in the

Real world all success stories are built on a foundation of personal finance here are nine of the most critical personal finance roles you will never learn in school so grab yourself a pen and notepad before we get started if you could smash that like button and subscribe that would help my channel greatly allowing the algorithm to push my videos to more viewers

With that being said let’s get started 9. buying your first home you’ve probably heard that if you want to buy a home you have to save up to 20 of the value of the property for a down payment because if you don’t you will be required to pay a private mortgage insurance which might seriously drain your savings what you won’t learn in school is that while paying

Extra for your mortgage may be difficult waiting to save up to twenty percent deposit maybe a better financial decision in the long run the real estate appreciation rate has increased significantly over the previous 10 years in the u.s and now seeing a major slowdown in more cases of discounted homes for sale purchasing a home when the market crashes with your 20

Down may be a very wise decision eight save and invest you will learn a school to set aside at least 10 percent of your salary but let’s be honest this isn’t enough to support oneself in retirement well until you make millions of dollars a respectable savings rate for the majority of us with steady employment will be between 25 and 40 percent however 10 could

Be a wonderful place to start if you want to develop your saving skills reduce your overall spending and unnecessary costs to save more money put your money in an investment account with a higher interest rate rather than purchasing that morning cup of coffee seven emergency fund you might not have learned about an emergency fund in school according to recent data

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40 percent of americans lack the resources to address a four hundred dollar emergency this alarming figure only serves to highlight how little awareness there is of this importance of an emergency fund what if your job was lost tomorrow would you have enough cash on hand to pay for everything the general norm is to have three to six months worth of expenses saved

Up but we advise making it more if you can number six budgeting fundamentals although it’s crucial in life budgeting isn’t covered in classroom everybody should understand how to create a lifestyle that would be paid by earned income this includes knowing how to budget for all expenses while also making sure there is money left over for necessities like groceries

And savings budgeting is crucial but let’s face it nobody enjoys keeping track of every single dollar they spend instead you could use a strategy we call tactical budgeting for instance you may decide what you need each month and then make a budget for the following six months that includes your needs wants and expenses to make sure you don’t go over budget divide

The funds into their own bank account to keep you on track and stay on course for example you’ll have a bank account for your needs another bank account for your wants and another bank account for your expenses five compound interest the power of compound interest may be the best kept financial secret time is the one thing that all young people have over everyone

Else they may not immediately reach their financial objectives but they have an advantage when it comes to investing all they have to do is take advantage of the compound interests powerful effects young people can accumulate significant wealth over the course of their lives by saving tiny amounts of money in high interest accounts here’s a fantastic example to

Demonstrate the significance of compound interest the first option would be three thousand dollars while the second option would be a penny that doubles every other day i assume the majority of the people would pick the first option well surprise surprise the second option however would be worth 10 million dollars after 30 days if you did the math if it doesn’t

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Motivate you to start utilizing this tremendous opportunity to grow your wealth i don’t know what will number four secrets of credit you must be aware of the following one of the most critical aspects of your financial health is your credit score which typically indicates where you stand financially as an adult a good credit score makes it much simpler to buy a

Home qualify for a vehicle loan apply for a business loan and accomplish other goals in the future everyone must understand how to establish credit and maintain a healthy score at all times here are some guidelines on how to accomplish that although the majority of the people believe acquiring a credit card is a mistake it is actually critical for creating your

Credit score basically when you use a credit card financial organizations keep track of all your purchases and interest payments they will grade you according to how well you pay your bills and if they are paid on time also they will grade you based on how much you owe on your credit cards so if you owe less than one to three percent of your total limits on your

Credit cards you will be rewarded with higher credit scores but if you owe more than one to three percent each month then you will be penalized with lower scores your credit score will affect the loan amount and interest rates that you will get when you apply for a loan so if you have a balance on your credit cards make sure to pay it down today number three taxes

If you want to stay in the right side of the law it’s important to understand how to operate learn how to compute the tax rate and determine how much money you will have left over before you receive your first salary or complete any business sales by doing so you’ll be better able to determine whether a job offer will fulfill your financial requirements and choose

The best pricing approach for your goods and services make it a practice to work with your bookkeeper and or cpa to keep your income expenses and liabilities all organized and simplified to do taxes each year number two be aware of your health without health insurance a hospital visit for an injury may cost thousands of dollars what will happen if you visit the

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Emergency room it’s possible that you’ll have to take out loans to cover the medical expenses which will put a hardship on you and others who had other plans for that money it doesn’t seem fair does it get medical coverage right now if you don’t already have one additionally maintaining good health will help you save a lot of money this includes eating the right

Foods keeping healthy weight exercising frequently and avoiding alcohol and other addictive substances protect your health today if you don’t want to regret it later number one student debt may not always be necessary contrary to what everyone believes that student loans go hand in hand with college degree you actually don’t need to get one to achieve great success

85 percent of new graduates complain of the heavy school debts and the chunk of money that goes to paying them off immediately when they start working these loans are not necessarily required in order to complete your degree some colleges offer financial aid to students to prevent debt accumulation other institutes provide top-notch institution at a much lower cost

Than private institutions you may also enroll in a less expensive institution work while you study graduate quickly or start your education at a community college but we’re not advocating that everyone should aim for debt-free education it may be worthwhile in some circumstances a few thousand bucks shouldn’t stand in your way if you plan to start a career that

Pays well your career goals and obtaining a skill set can be attained in a variety of different ways that brings us to the end i really hope that this video brought you some value let me know your thoughts in the comments below which options resonated with you if you like this video please like and subscribe i’m very grateful for your support so stay tuned for

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9 Principles Of Personal Finance Rules (Things School Didn't Teach You!) By SAVVY MINDSET