You never know when a rainy day could happen, and your savings account will brace your fall if that rainy day happens. Without savings, you could be forced to sell your investments at the wrong time. You may even have to pull money out of your retirement accounts. Not only will this disrupt your future, you'll also have taxes and financial penalties to deal … [Read more...] about How Much Should Be in Your Savings Account?
Personal Finance
Average Income by Age – Where Do You Rank?
Tracking average income by age is a great way to see how you are doing compared to your age group. According to the Census Bureau's Current Population Survey in 2016, the average American under 65 is earning $46,409 per year. How does that break down by age? Average Income by Age is Skewed Many people default to averages, and this is an important reminder to emphasize how … [Read more...] about Average Income by Age – Where Do You Rank?
The Consequences of Treating Your House as an Investment
It's easy to think of your house as an investment. As the value of your home goes up, you'll naturally feel wealthier. Homeownership gets drilled into our heads throughout our lives, and rightfully so. It is one of the main drivers to your net worth. While homeownership is a great aspiration, you can fall into the trap of treating your home as an investment. Doing so could … [Read more...] about The Consequences of Treating Your House as an Investment
Learn How to Negotiate Your Salary by Anchoring
When you negotiate your salary, should you throw out the first number? If you would rather wait for them to say the number first, you could be costing yourself a lot of money. Knowing how to negotiate your salary is crucial to maximize your income. By saying the number first, you will anchor the other party to the number you give. Whether they like it or not, the rest of your … [Read more...] about Learn How to Negotiate Your Salary by Anchoring
Build A Budget with Opportunity Cost in Mind
It's important to know the future value of your savings when you build a budget. A simple way to keep this in mind is to know your opportunity cost of saving. What is Opportunity Cost? Opportunity cost is a key concept of economics, which represents the scarcity of choice. You only have so much time and money, and opportunity costs are the costs incurred by not enjoying … [Read more...] about Build A Budget with Opportunity Cost in Mind