Personal Finance: 101 "The Basic's"

I'll just come out there any say it, budgeting isn't everyone's favorite topic (although, I can say I thoroughly enjoy it)... so I am not expecting this post to make anyone's day. However, this is a "framework" to begin assessing your financial journey and the launch point to begin dissecting your financial picture. To make this post a "tad" more enjoyable, there's a list of other topic's with some general information designed not to scare anyone away (more to get you thinking, "so what's next?").

These are all topic's I will dive into over the course of the next few weeks in MUCH greater detail, but these can be used as a introduction to how we can prepare a disciplined retirement:

Budgeting Basics:

• Creating a Budget: Keep this easy. List what's "coming in the bank" and list items "leaving the bank". Prioritize the "needs", then list the "wants".

• Needs vs. Wants: Understand the difference between essential expenses and discretionary spending.

• Emergency Fund: Ideally, a separate bank account at another institution where money is automated to be saved each paycheck. Psychologically, it's harder to move money when it takes over a day. Consider a money market or high yield savings account to earn "more bang for your buck".

Saving and Investing:

• Savings Accounts: Explore the different types of savings accounts and their benefits.

• Investment Accounts: Understand the basics of investing in stocks, bonds, and mutual funds. More detail to come about the difference with the various account types.

• Compound Interest: Learn how compound interest can help your money grow over time.

Debt Management:

• Credit Cards: Understand how credit cards work, and how to use them responsibly.

• Paying Off Debt: Strategies for paying off high-interest debt and becoming debt-free.

• Credit Scores: Learn how to improve your credit score and why it's important.

Retirement Planning:

• 401(k) and IRAs: Explore retirement account options and how to start saving for retirement.

• Retirement Calculations: Estimate how much you'll need for retirement and how to achieve that goal.

• Social Security: Understand how Social Security benefits work and when to claim them.

Insurance and Protection:

• Health Insurance: The importance of having health insurance and how to choose the right plan.

• Life Insurance: Considerations for selecting life insurance coverage.

• Emergency Planning: Prepare for unexpected events by creating an estate plan and having adequate insurance coverage.

Financial Goals and Prioritization:

• Setting Financial Goals: Establish clear financial objectives for the short-term and long-term.

• Prioritizing Expenses: Learn how to allocate your money towards your most important financial goals.

• Tracking Progress: Monitor your financial progress and adjust your plan as needed.

Estate Planning:

• Wills and Trusts: Create a will and explore trust options for passing on assets.

• Inheritance and Legacy: Plan how your assets will be distributed to your heirs and charitable causes.

Financial Mindset:

• Financial Literacy: The importance of continually educating yourself about personal finance.

• Delayed Gratification: Practice discipline and delayed gratification for long-term financial success.

• Lifestyle Inflation: Avoiding the pitfalls of overspending when your income increases.

Financial Resources:

• Books and Websites: Recommended books and online resources for expanding your financial knowledge.

• Financial Advisors: When and how to seek the help of a financial advisor.

Remember that personal finance is a journey, and building financial literacy and good habits takes time. It's crucial to tailor your financial strategy to your unique goals and circumstances. If you have specific questions or want more detailed information on any of these topics, feel free to ask!