Financial Education Course – Step #5, How to Build Wealth This is going to be the last post of this Financial Literacy course. You’ve made it this far. So, let’s finish this out STRONG! Here are some ideas: Passive income streams (i.e. real estate, renting out rooms as Airbnb) Investments in the markets (i.e. mutual …
Financial Education Course – Step #4 How to Eliminate Debt – Debt Management Let’s start off with some statistics: 80% of American adults are in DEBT. 50%+ own a Credit Card. $8,284 is the Average Credit Card Debt per Household I’m assuming that a lot of people will have credit card, student loan, or some …
Financial Literacy Lesson 17 – How to Eliminate Debt? Read More »
Financial Education Course – Step #3 (Cont.) Emergency Fund We’re on the third step finally! We talked about emergency funds in the previous post, but to recap, it’s basically a small fund to take care of you if something unexpected happens, like if you get laid off. I’m writing this in the middle of the …
Financial Literacy Lesson 16 – How much Emergency Fund Should I Have? Read More »
Permanent Life Insurance – What can A Permanent Life Insurance Policy with Cash Value be used for? We talked about cash value in the last post, so if you want, please check it out here. Now, we’re going to talk about what it can be used for. Stick around, you’ll learn something that will blow …
Financial Literacy Lesson 15 – Permanent Life Insurance Policy Extras Read More »
In the last post we talked about term life insurance, today we’ll talk about permanent life insurance policy. Here are the similarities and differences between permanent life insurance vs term: The similarities is that both permanent life insurance and term offers a death benefit. The differences is that for permanent life insurance… It’s kept for …
Financial Literacy Lesson 14 – What’s Included With a Permanent Life Insurance Policy? Read More »
What is temporary life insurance? Temporary life insurance is protection for a specific period of time. We’re talking 10, 20, or 30 years. It’s the most affordable because it provides a death benefit. Term insurance, a form of temporary life insurance, expires after a certain term (i.e. 10, 20, 30 years) that’s why it’s called …
Financial Literacy Lesson 13 – Temporary Life Insurance Read More »
Life Insurance First Questions – Rule of Thumb Your life insurance should cover 10X your annual family income If your annual household income is $100,000, that means you need $1 million death benefit. If your annual household income is $50,000 that means you need $500,000 death benefit. Life Insurance Questions – Second Rule of Thumb …
Financial Literacy Lesson 12 – Life Insurance Questions Read More »
Do you know ONE thing that you can NOT buy? When you need it and want it most? No matter how much you offer? The answer is INSURANCE. Doesn’t that make sense? If you have stage 4 cancer and you’re about to kick the bucket and die with a family of four. You have two …
Financial Literacy Lesson 11 – Life Insurance Example Read More »
What is Life Insurance? Life insurance is there to protect your income and wealth. Life insurance is there to protect your income and wealth. It is a critical part of any personal finance strategy as it protects the individual (or insured) from any unexpected events. Life insurance comes in two flavors: term and permanent. Both …
Financial Literacy Lesson 10 – What is Life Insurance? Read More »
What’s the Rule of 72? The Rule of 72 is a quick formula that allows one to find out how long it takes for an investment to double. Taking 72 divided by the interest rate gives us the years needed for an investment to double. Similarly, taking 72 divided by the years left to save …
Financial Literacy Lesson 9 – Rule of 72 Formula Continued Read More »
In the last post, we left you with the question… What’s the current interest rate on a savings account? It’s 0.09%. Don’t believe me? Let me google that for you. What do the Banks do with your cash? Well, we established that they give you 0.09% interest, which is nothing. However, they take the cash …
Financial Literacy Lesson 8 – Why Not to Save Money And Rule of 72 Formula Read More »
Compound Interest vs Simple Interest Examples In the last post, we geeked out and learned how to calculate compound interest with contributions, which Is the most accurate and useful way of calculating compound interest because most of us will be contributing on intervals (i.e. once every month). We calculated simple interest and compound interest and …
Financial Literacy Lesson 6 – How to Grow Your Money Through Investments Read More »
Stats Due to Lack of Financial Literacy Let’s start off with some stats. Here’s the damage in America. 44% of Americans don’t have the cash to cover a $400 emergency. 43% of student loan borrowers are not making payments 38% of households in America have credit card debt 33% of American adults have ZERO RETIREMENT …
Financial Literacy Lesson 3 – How much Do YOU ACTUALLY need Read More »
