When we are in a meaningful relationship, sometimes finances can be a tough subject to discuss. We found several surveys that stated around 50% of couples did not discuss money. Money discussions are essential to a healthy relationship. Honesty and teamwork will make your dream work!
Here are the ten key components to having a healthy money relationship with your partner.
1. Personality Types & Emotions
We all have unique personality traits and past experiences that contribute to how we make decisions. Many of us learned about how to use money from those close to us, and not through a formal education. So, automatically we all have baggage and prior money experiences that we bring to a relationship.
It is important that, as a couple, we talk about how we feel about money. Here are some questions to ask each other so you...
Preparing for the unexpected is not always something people want to think about when trying to improve their financial situation. It is the one area of our finances we commonly put off. Someone who is prepared and protected from a disaster can avoid significant setbacks in their financial situation; after all, large setbacks can ruin your future. There are several ways someone can protect themselves from extreme risk: emergency funds, insurance, and planning.
Types of Risk
Let’s cover more about this idea of risk. We all know our basic needs are food, shelter, and clothing. Without these, we would be in big trouble. In addition to these, our health is a basic need as well.
If there is a natural disaster, it can be difficult to replenish your food supply. Roads may be closed, so suppliers may n...
In our lifetime, we will make some large purchases that will require planning. Purchasing a home, a car, a boat, another property, or a college education are all examples of these. In this tutorial, we will focus on items that cost more than $5,000. Our discussion will cover questions you should ask yourself before making a big purchase and ways to fund it.
Questions to ask before making a big purchase:
What is the purchase?
What will the purchase do for me?
How much do I estimate the purchase will cost?
How will I pay for it? Come up with at least 2-3 methods.
Are there alternatives to the purchase?
Define pros and cons of making the ideal purchase?
It can be exciting to earn money and have a source of income. You learn quickly that having an income to support yourself gives you confidence and freedom. When you earn money, you can participate in society and your local community by paying taxes. While most of us hate the sound of paying taxes, we need to remember it allows us to live in a prosperous nation and local community. Understanding the U.S. tax system will help you budget your take-home pay, so we'll begin by understanding the basics.
Let’s start with an explanation of the type of tax system used in the United States and how to calculate federal and state taxes. The U.S. uses a progressive tax system, which means that the more income you make, the more you pay in taxes. Taxes due are calculated based on percentages, called tax brackets. The system believes that people who make the most should pay more tax.
The latest tax reform is called the Tax Cuts and Jobs Act (TCJA), and it changed the tax rates for 2018. Here are the newly assigned rates for federal taxes for different taxpayers:
Everyone needs a monthly budget, even if you make plenty of money! Budgets lead to feeling confident about your finances, and this confidence will lead to less stress and put you on the path to financial independence.
Long gone are the times of check registers and paper tracking of your budget. We want digital solutions, and we know some good ones to share with you. First, you need to understand what the essential components of a monthly budget are.
When you are starting to create a monthly budget, most apps and spreadsheet templates ask you to write down your net monthly income. Net income is what you get from your paycheck after taxes, insurance, and savings are taken out. This is the money you will have access to on a daily basis.
Income can come from other places besides a job. For...
When we think and talk about investing, we often have in mind our ideal retirement scenario — retirement is typically the primary focus of a financial plan.
The most common place individuals turn to for retirement savings is their employer, and that is because the United States offers employers tax benefits and savings solutions for their employees. Common names of employer plans are 401(k), 403(b), 457 and Thrift Savings Plan (TSP).
Other types of retirement accounts can be opened without an employer such as an IRA or Roth IRA.
Social Security is a government system that is aimed at providing income after a specified retirement age.