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This advice is so true. I just want to add a few things: TFSAs, RRSPs, and life insurance. TFSAs are investment accounts that grow money tax-free and allow for tax-free withdrawals. RRSPs are retirement plans that money can grow tax-free but are 100% taxable when withdrawing money BUT their main advantage is that any money put in them is tax-deductible. Life insurance provides a protection for your loved ones if something should happen to you. It's best to get it when you are younger as this usually means you are in better health and the premiums are based on age and health. This is just high-level information, if you want to learn more comment below or leave me a DM.

People in their 20s don’t always have much experience managing their finances, which means it’s easy to make mistakes, such as misusing credit cards or falling into debt because of “lifestyle creep.” These mistakes are often quite common, too, says Michela Allocca, a 28-year-old personal finance coach who specializes in helping young professionals. The “Break Your Budget” author has successfully navigated what she describes as the “weird time after college where you’re still figuring out how to manage a salary.” In fact, her net worth is more than $500,000, according to documents reviewed by CNBC Make It. Here are five common money mistakes that can result in unnecessary debt or a missed opportunity to build wealth, drawn from Allocca’s experience.

People in their 20s don’t always have much experience managing their finances, which means it’s easy to make mistakes, such as misusing credit cards or falling into debt because of “lifestyle creep.” These mistakes are often quite common, too, says Michela Allocca, a 28-year-old personal finance coach who specializes in helping young professionals. The “Break Your Budget” author has successfully navigated what she describes as the “weird time after college where you’re still figuring out how to manage a salary.” In fact, her net worth is more than $500,000, according to documents reviewed by CNBC Make It. Here are five common money mistakes that can result in unnecessary debt or a missed opportunity to build wealth, drawn from Allocca’s experience.

People in their 20s don’t always have much experience managing their finances, which means it’s easy to make mistakes, such as misusing credit cards or falling into debt because of “lifestyle creep.” These mistakes are often quite common, too, says Michela Allocca, a 28-year-old personal finance coach who specializes in helping young professionals. The “Break Your Budget” author has successfully navigated what she describes as the “weird time after college where you’re still figuring out how to manage a salary.” In fact, her net worth is more than $500,000, according to documents reviewed by CNBC Make It. Here are five common money mistakes that can result in unnecessary debt or a missed opportunity to build wealth, drawn from Allocca’s experience.

People in their 20s don’t always have much experience managing their finances, which means it’s easy to make mistakes, such as misusing credit cards or falling into debt because of “lifestyle creep.” These mistakes are often quite common, too, says Michela Allocca, a 28-year-old personal finance coach who specializes in helping young professionals. The “Break Your Budget” author has successfully navigated what she describes as the “weird time after college where you’re still figuring out how to manage a salary.” In fact, her net worth is more than $500,000, according to documents reviewed by CNBC Make It. Here are five common money mistakes that can result in unnecessary debt or a missed opportunity to build wealth, drawn from Allocca’s experience.

"Understanding the Pitfalls: Why Some People Go Broke Despite Having a Monthly Income" In a world where steady employment and monthly paychecks are the norm, it might seem perplexing that individuals still find themselves facing financial ruin. However, the reality is that many people struggle to make ends meet despite having a regular income. Understanding the reasons behind this phenomenon can shed light on how individuals can avoid financial pitfalls and secure their financial future. 1. Lack of Budgeting: One of the primary reasons people go broke is a failure to budget effectively. Without a clear understanding of their income and expenses, individuals may overspend, leading to financial strain. Creating and sticking to a budget is crucial for managing finances responsibly. 2. Living Beyond Means: Another common reason for financial hardship is living beyond one's means. As income increases, so do expenses, often resulting in a cycle of debt. It's important for individuals to live within their means and avoid unnecessary expenses to maintain financial stability. 3. High Debt Levels: Accumulating high levels of debt, particularly through loans with high interest rates, can quickly spiral out of control. Many people find themselves struggling to make minimum payments, leading to a cycle of debt that can be difficult to escape. 4. Unexpected Expenses: Life is full of surprises, and unexpected expenses can quickly derail even the most carefully crafted budget. Whether it's a medical emergency, car repair, or home maintenance issue, having an emergency fund can help individuals weather financial storms without going broke. 5. Poor Financial Planning: Without a clear financial plan, individuals may find themselves drifting aimlessly, unsure of how to achieve their financial goals. Setting clear goals and creating a roadmap for achieving them is essential for financial success. 6. Job Loss or Income Reduction: A sudden loss of job or reduction in income can have devastating financial consequences. Without a safety net in place, individuals may struggle to meet their financial obligations, leading to financial hardship. 7. Lack of Financial Education: Finally, many people find themselves facing financial difficulties simply because they lack the necessary financial education. Understanding basic financial principles, such as budgeting, saving, and investing, can go a long way in helping individuals avoid common financial pitfalls.

?? Did you know that personal finance doesn't have to be complicated? It's all about manageable steps that can transform your financial habits! Dive into the basics of personal finance like creating a budget, saving for large purchases, building an emergency fund, and more. Find out how these steps can revolutionize your financial journey: [Link to the article] ?? **Create a Budget**: Understand the importance of budgeting—it's the foundation for your financial decisions. ?? **Save for Large Purchases**: Learn how sinking funds can help you prepare for irregular expenses like car maintenance or annual fees. ?? **Build an Emergency Fund**: Discover why having an emergency fund is crucial for financial security and peace of mind. ?? **Save for Retirement**: Get insights into retirement investing and the smart strategies to secure your future. ??? **Get the Right Insurance**: Uncover the essential types of insurance you need for protection and financial stability. ?? **Get a Will**: Learn about the significance of having a will as part of your financial planning and responsible adulthood. ?? **Pay Off Your Debt**: Explore how eliminating debt can free up your income and empower your financial growth. ?? **Make Wise Housing Decisions**: Find out key points to consider when purchasing a house to avoid financial strain. ?? **Get a Game Plan for Your Money**: Discover how Financial Peace University can equip you with the knowledge to manage your money effectively. Empower yourself with these financial insights and start making informed decisions for a brighter financial future! #PersonalFinance #FinancialPlanning #Budgeting https://lnkd.in/gX3uGsHS

11 Personal Finance Rules Everyone Should Know: Unlock Your Inner Money Master! ???? Feeling overwhelmed by financial jargon? Time to cut through the noise with 11 must-know rules that'll make you a finance whiz: 1. Rule of 72: Double Your Money Want to see your investment grow like magic? Divide 72 by your annual return rate. An 8% return means your money doubles in 9 years (72/8) ! ??? 2. Rule of 70: Inflation Adjustment Ever wonder how long until prices double? Divide 70 by the inflation rate. With 2% inflation, costs double in 35 years (70/2). Stay ahead of the curve! ?? 3. 4% Withdrawal Rule Planning for retirement? Withdraw no more than 4% of your savings annually to make your money last. Keep the golden years golden! ??? 4. 100 Minus Age Rule How much to invest in stocks? Subtract your age from 100. If you're 30, invest 70% in stocks, 30% in bonds. Age gracefully with a balanced portfolio! ?? 5. 10, 5, 3 Rule Expect 10% from stocks, 5% from bonds, and 3% from cash. While not set in stone, it helps you navigate the financial seas. ?? 6. 50-30-20 Rule Budget like a pro: 50% for needs, 30% for wants, 20% for savings and debt. It's the recipe for financial harmony. ??? 7. 3X Emergency Rule Build a safety net with 3-6 months' worth of living expenses. It's your financial cushion against life's unexpected bumps. ??? 8. 40% EMI Rule Keep your EMIs under 40% of your income to stay afloat and avoid debt pitfalls. Smart borrowing, smart living! ?? 9. Life Insurance Rule Protect your loved ones with coverage of 10-12 times your annual income. Because peace of mind is priceless. ?? 10. Rule of 144 Look for mutual funds with stellar performance over 12 years (144 months). Longevity = trustworthiness. ?? 11. Revolving Credit Formula Calculate your credit card's true cost: \((1+i\%)^{12}-1\). Arm yourself with this knowledge to dodge debt traps! ???♂? Master these rules, and you'll navigate the financial world with confidence and ease. Tailor them to your life, and let financial freedom be your compass! ???? #FinancialFreedom #MoneySmart #PersonalFinance #InvestWisely #FinanceHacks #SmartMoneyMoves

Money. We can’t live without it yet can’t seem to get any of it into our savings accounts either. While we know money is important, that doesn’t stop us from making bad spending decisions, and we find ourselves struggling financially. Recognising and breaking bad money habits that include overspending, not budgeting, and not saving or investing is key to anyone who wants to improve their financial situation. In this article, we will look at 10 bad money habits that are keeping you poor.

I was at a conference on Saturday and one of the Speakers who spoke about Personal Finance said that she cannot afford to do make up of 40k! Of course, in a hall filled with Lots of Women, you can imagine the reaction that swept across the room!!!! ?????? But here's a thing People do not know: "That the money is in your bank account, doesn't mean you can afford it!" Lemme first establish this: Money is a finite resource so it matters that you pay close attention to how you allocate this into the different aspects of your life. ??Take Cognizance of your Financial Situation before you make that purchase. Ask yourself" How is this purchase going to affect my budget? am I spending more than planned? am I dipping into money allocated to something else? ??To succeed in your personal Finance, you've to understand and play the game of Trade-Offs! You mustn't buy everything or do everything. Use your money as a tool to place premium on assets that grow your net worth. Place Premium on Growing your wealth first. As your Income increases, it's not Time to start spending more but a time to build your net worth. ??Before you come for my neck, I'm also all about enjoyment. But you can go about it these ways: 1) Let your enjoyment be planned for: In your budget, have an allocation for flex. But ensure you do not go beyond what is allocated. 2) Practice Delayed Gratification a bit: If what you want is going to overstretch you, then delay that gratification for a while and work towards it. Again, that the money is in your account doesn't mean you can afford it. You deserve to be Wealthy ??