Category: Just Getting Started
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How can I reduce my spending?
Answer: To reduce your spending, you first need to know where your money goes. Start out by keeping track of all of your expenses for a month. None are too small or insignificant: the daily newspaper, coffee on the way to work, an extra gallon of milk, that burger at the fast-food outlet. Next, categorize…
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Establishing or Increasing a Cash Reserve
What is the cash reserve building process? Building a cash reserve is the process of actually setting up and funding the account(s) that will compose it. When available funds fall short of the cash reserve goal, the first step is to review alternatives for reaching that goal. Knowing these alternatives, you can then develop a…
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Repayment Options for Student Loans
What is it? When you begin repaying your federal student loans, you will need to select a repayment option. In the past, the federal government offered only one option: a standard repayment plan where you paid a fixed amount each month for 10 years. Now, the federal government offers an assortment of flexible repayment [;plans.…
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Strategies When You Can’t Pay Student Loans
Introduction Some borrowers run into financial difficulties at one time or another in the course of repaying their student loans. If you find yourself in this position, don’t despair. Nearly all lenders offer certain options to help you through temporary cash flow jams. The primary way to temporarily postpone the repayment of your student loan…
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How do I apply for financial aid?
You should start by filling out the federal government’s aid application, the FAFSA. This application is used by both the federal government and colleges when federal money is being dispersed. The best way to fill out and submit the FAFSA is online at the Department of Education’s website at www.fafsa.ed.gov. In order to do so,…
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The Cost of Moving Out of Your Parents’ House
This chart shows the monthly expenses facing young adults ages 25 to 34 in the U.S. who move out of their parents’ home and the percentage each expense consumes based on a typical income for people in this age group. Rent devours paychecks, and transportation and student debt compound costs Moving out can be a…
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I teach at a school that offers a 403(b) plan. Is this type of plan a good way to save for retirement?
In general, yes. Also known as a tax-sheltered annuity, a 403(b) plan is an employer-sponsored plan designed for employees of certain tax-exempt organizations (e.g., hospitals, churches, charities, and public schools) to invest for their retirement. Typically, the employer purchases annuity contracts or sets up custodial accounts for eligible employees who choose to participate. A 403(b) plan…
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401(k) Plans: The Basics
Retirement plans established under Section 401(k) of the Internal Revenue Code, commonly referred to as “401(k) plans,” are one of the most popular types of employer-sponsored retirement plans. What is a 401(k) plan? A 401(k) plan is an employer-sponsored retirement savings plan that offers significant tax benefits while helping you plan for the future. You…
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Getting Started: Establishing a Financial Safety Net
In times of crisis, you don’t want to be shaking pennies out of a piggy bank. Having a financial safety net in place can help ensure that you’re prepared when a financial emergency arises. One way to accomplish this is by setting up a cash reserve, a pool of readily available funds that can help you…
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Establishing a Budget
Do you ever wonder where your money goes each month? Does it seem like you’re never able to get ahead? If so, you may want to establish a budget to help you keep track of how you spend your money and help you reach your financial goals. Examine your financial goals Before you establish a…
