Net worth provides a quick snapshot of your overall financial health. This simple figure is calculated by subtracting the dollar-value equivalent of all of your debts from all of your assets. Knowing your net worth can help you determine where you are in your financial journey — and, just as importantly, where you want to go. Read on for a quick guide to calculating your net worth.Net worth is calculated
The Envelope System is a great method for saving money.It works by allocating money for certain categories like eating out, shopping, movies, and so on in envelopes. Once you spend the money in the envelope, that’s it for the month. You can’t spend more.It’s a great system to use if you’re in debt, because it forces you to be actively aware of your spending — but is it all it’s cracked up
The debt snowball method is a system that concentrates on paying off debts with the lowest balance first. The idea is that you’ll be able to clear your smallest debt the quickest. This allows for a quick win, which can keep you motivated to continue paying off your debts. Once you pay off the smallest debt, you then move on to focus on the next smallest debt.This is a popular
Personal finance software isn’t just something for accountants and personal finance managers. Everyone can benefit from user-friendly software to help manage their money. The right solution can make it easier to plan and track your spending, helping you become a more fiscally responsible adult.There are plenty of easy-to-use tools available. You don’t have to stress about needing accounting skills or struggling to learn a complicated piece of software. Here’s what
According to Gallup research, 62 is the average retirement age for Americans; however, there is no one right retirement age. The ideal age for you will depend on many factors, from your personal preferences to your lifestyle and the nature of your work. For example, if your job is physically demanding, early retirement might be logical.Regardless of when you hope to retire, you’ll have to make sure you have sufficient
Tracking expenses can help inform smart money management, ensuring you have clear oversight and control over your finances. While the thought of examining the money you spend may be daunting at first, this is one of the first steps in setting a monthly budget that works for you (i.e., one that covers your basic needs and wants without leaving you feeling like you’re living a life of denial).When setting up
A health savings account (HSA) can be a practical part of your comprehensive money management strategy. HSAs provide a secure place to keep pre-tax money and let it grow tax-free. You can later use the cash in your HSA account for qualified health care expenses.In addition to helping you save on medical costs, investing in an HSA can also benefit your finances in other ways. This article will provide an
A new year is an opportunity for a fresh start. From losing weight to starting a new hobby, there are a few resolutions that people frequently come back to again and again when determining what they want to change about their lives. Improved financial stability is another goal that we all seem to strive for consistently — but often fall short on.Only 19% of Americans have enough cash saved to
I’d like to introduce the concept of Career Seasons to you — which will help you find a job that’s perfect for you in this season of your life.At different points in our lives, we want different kinds of jobs:Without understanding your Career Season, how can you find a job that’s perfectly made for you?Here’s how we discovered this concept.Whenever I ask people what they want from a Dream Job,
I always say, “Show me a person’s calendar and I’ll show you their priorities.”Well, I have a newer version of that: Show me a person’s spending, and I can show you what they love.I spent years talking to people about their spending habits, and I boiled them down to 10 “Money Dials.” They’re called Money Dials because you can “tune” them up or down — just like a dial.If you
