Category: Just Getting Started

  • Senior woman and younger woman in a serious financial consultation, both taking notes at home

    Budgeting: Calculating Your Net Worth

    What is net worth? Your net worth is your personal bottom line. It’s what your total holdings are worth after subtracting all of your financial obligations. In financial terms, your net worth is equal to your total assets minus your total liabilities. A statement or listing of your net worth is equivalent to the balance…

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    The Spending Plan (Budget)

    What is the spending plan? Your spending plan is essentially your budget. By using a more positive name, you can escape the feeling of restriction that often accompanies the term budget. Your spending plan is a tool to help you achieve financial goals that otherwise might seem impossible to reach. It is a way to take charge…

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    Using the Reasonableness Test in Creating Your Budget

    What is the reasonableness test? When forecasting what the future might bring, whether in terms of income or expenses, it is always prudent to ask what is actually reasonable to expect. The question is simple, but the answer, often, is not. The reasonableness test is most difficult to apply in areas where you have little…

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    Estimating Expenses

    What is estimating expenses about? Estimating expenses is similar to estimating income. Both are equally important and use a prior period’s information as their starting point. Naturally, some expenses are more difficult than others to predict and therefore require conservative estimating. Since, unlike income, expenses can arise from tremendously diverse sources, estimating expenses is more…

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    How can I pay off my credit card debt?

    Answer: Certainly the best way to pay off your credit card debt is with a single payment. If you can find the money to pay off all your credit card debt, you’ll get back on solid financial ground quickly and without paying additional interest. The next-best method is to pay off the card with the…

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    Debt Consolidation

    If you have a lot of debt, you’re not alone. Today, more and more Americans are burdened with credit card and loan payments. So whether you are trying to improve your money management, having difficulty making ends meet, want to lower your monthly loan payments, or just can’t seem to keep up with all of…

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    Reducing the Cost of Debt

    What is reducing the cost of debt? As the old adage goes: “A penny saved is a penny earned.” And though it may sound trite, it is true. If you carry a large amount of debt, one of the easiest ways to reduce spending is to reduce the ongoing amount you must pay in interest…

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    How can I lower the interest rate on my credit card?

    Answer: One way is to call your existing lender and try to negotiate a lower rate. Often, the threat of losing a customer and the associated income from your finance charges can inspire a card company to accept a lower interest rate and keep the relationship. Negotiation is most effective if you have a stable…

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    Will debt consolidation hurt or help my credit rating?

    Answer: Debt consolidation can lead to an improvement in your credit rating by making your debt easier to manage. Sometimes, debt consolidation means taking a loan at a lower interest rate to pay off several smaller loans at higher interest rates. Making one payment instead of many may help you keep your debt under better…

  • Two business colleagues — a woman and a man — reviewing content on a tablet in an office

    How much money should I keep in a savings account for emergencies?

    Answer: Without an adequate emergency fund, a period of crisis could be financially devastating. Many financial professionals suggest that you set aside three to six months’ worth of living expenses for emergencies. The actual amount, however, should be based on your individual circumstances. Do you have a mortgage? Do you have short-term and long-term disability…