Budgeting
Budgeting tools?
Mint, YNAB (You Need a Budget), Personal Capital, and PocketGuard.
Short vs long-term?
Short term- saving for goals you want soon like a new phone, Long term is saving for bigger goals like a house.
APR meaning?
Annual Percentage Rate.
Credit card debt?
This is money you owe from using a credit card. If not paid quickly, it can grow because of high interest.
What is a mutual fund?
A mutual fund pools money from many people to invest in different things like stocks and bonds.
50/30/20 Rule?
50% for needs, 30% for wants, and 20% for savings and debt repayment
Pay yourself first?
Putting money into savings before spending on anything else
Using credit wisely?
Only borrow what you can afford
Minimum payment issue?
If you only pay the minimum, your dent grows and takes much longer to pay off.
ROI meaning?
Return on investment
How to cut expenses?
Meal planning,Look at subscriptions,Shop smart, Create a budget, Cut back on utilities.
Interest compounding?
It's when you earn interest on both your savings and the interest already earned. It helps money grow faster.
Why credit matters?
Good credit gets you loans, rent home, and sometimes get you jobs, bad credit makes life harder.
Debt snowball method?
You pay off your smallest debt first, then move on to the next one.
What is risk?
Chance you could loose money while investing.
Adjusting a budget?
Review your income and expenses, Set new finance goals, Track your progress, Be flexible.
Saving challenges?
Problems include spending too much, not earning enough, or forgetting to save.
What Should You Do With Your Checking Credit Report.
You should check it often to make sure there are no mistakes.
Debt consolidation?
This means combining all your debts into one loan to make payments simpler and possibly cheaper.
Diversifying portfolio?
Spreading your money across different investments to lower the risk of losing it all