Unexpected events are some of the only events we can expect.
How do you expect the unexpected? You need a plan.
It’s important to be prepared. Financially, there is one major step to take that can leave you feeling secure.
An emergency fund.
An emergency fund is the most important foundation of your financial health. No matter where you are in your financial journey, having an emergency fund will get you closer to your goals and limit your setbacks.
Using a credit card for emergencies can turn an emergency into a catastrophe. Getting into credit card debt will just create more problems, that’s why we plan for emergencies without credit cards, right?
Let’s start with the basics…
No matter what your beliefs are, I think most of us are pretty familiar with this passage:
“give, and it will be given to you. Good measure, pressed down, shaken together, running over, will be put into your lap. For with the measure you use it will be measured back to you.” (Luke 6:38, ESV)
Giving isn’t only popular among Christians, some other influential figures had been known to have high regards for giving:
“The value of a man resides in what he gives and not in what he is capable of receiving.” – Albert Einstein
And remember, no matter your financial situation, you can always give something…
Once your monthly bills are organized, you can set back and relax.
It just takes a little time to accomplish this and it’s worth the peace of mind.
Don’t be late on your bills because are unorganized.
That is no excuse and the companies that you pay would agree. Get organized! Know what and when money will need to be paid.
There are 3 simple steps…
After you know your net worth, you need to figure out if you are headed in the right direction.
You need to figure out where your money is going. To do this you will need to track all of your expenses. Write down every bill, payment and expense that you pay in a typical month.
Most of the time people spend a lot more than they think they do.
This is why it’s important to…
Determining you net worth is an easy formula, but getting all of the information together may be time-consuming.
It’s worth it.
You need to know you net worth because you need to know where you are starting. If you already know your net worth then you can skip this step.
How do you determine your net worth?
It’s a simple formula…
The most important step to success in anything is the first step. If you don’t begin, you won’t get anywhere.
As we know from Lao-tzu: “A journey of a thousand miles begins with a single step”.
This is the first article in a series on beginning your path to financial success. Always remember that finances often seem more complex than they really are. It’s important to know that you control your financial future.
You can choose to be financially free.
A mutual fund is like a bucket full of multiple different stocks, bonds, securities or a combination that you invest in collectively. When you buy into a mutual fund, you are buying into all of the securities in the fund by making one single investment. It is a great way for instant diversification.
There are different types of mutual funds…
There are stock funds, sector funds, passively-managed, actively-managed, load, no-load, money market funds, balanced funds and that’s just naming a few of them.
This may seem confusing, but if this seems more complicated than you would prefer, there is a simple rule that you can live by…
An index fund is a fund that tracks an index, such as the S&P 500, the Nasdaq 100 or the Dow Jones (the 3 most popular American indexes). So what exactly is an index?
What is an Index?
An index is a representation of a portion of the stock market.
For example: The Dow Jones Index is comprised of 30 companies, these are 30 of the largest and most influential companies in America. So if you were to invest in a Dow Jones index fund, you would be able to invest in a single fund, but that single fund would be invested in all of the companies on the Dow Jones Index.
There are larger indexes, the largest among popular indexes probably being…