-Everything in personal finance canbe distilled to the three basic principles. So number one is just spend less than you earn,which essentially means save money. Number two is make the money you have work for you. So once you’ve saved it, invest it.
Now we’ve narrowed it down to a certain extent but there are a few more elements that need to be reviewed… Make sure that it grows. Make sure that you take advantage of compound interest. And number three is, once you’ve saved and invested, protect it,making sure you have an emergency fund. So there are a lot of people who write in and say that Minthas helped them get out of debt. They had 5, 10, 15 thousand dollars worth of debt. And simply by seeing where they were spendingall of their money and what their interest rates were 20 Brilliant IKEA Bathroom Organization Ideas and finding potentially lower interest rates, they were able to pay off that debt,often within six months or a year.-My sister-in-law introduced me to mint.comand basically just told me about this really neat websiteand said, hey, you should log onto mint.com. It’ll really help you track your spending.
It’s very user friendly, time efficient,and it’ll give you access to your accountsmuch faster than any other way that you could possiblyget into your accounts. The feature I like most about mint.comis that it will categorize your spending for youand really detail exactly where your money is going. And before, I really didn’t have a very good ideaof exactly where all of my money was going. So it was a really eye-opening experienceonce I started using mint.com. And I believe that it identified some areasthat I needed to be a little bit moreefficient in with my money.-Since the early 19th century, the stock market,although it’s taken a big dive this year,has returned an average of about 7% return. And so if you put about $200 a monthin for the next five years and you were 25 or 30when you started on that, you’d have about a million dollarsby the time you retire.-I want to make sure we’re saving money. And we can retire when we want to retire.
We’ve got life plans that we’ve workedwith financial professionals on. And this is just a great tool to help us realizie and achievethose goals.-It’s really opened my eyes to the importance of investments. And boy, it really showed me that Ineed to become a little bit more conscientious about my savings.-It gives us a GPS of where we are nowand where we want to go in the future. And it provides us the tools to get there too. And it provides the tools that wecan customize in our own way. It doesn’t tell us exactly how we need to get there,but it allows us to decide what we want to do in a fashionthat we like. That’s really big for me.-You never know when you’re going to lose your jobor get into a car accident or needmedical help or some sort of procedure.
So we recommend that people have an emergency fund. And we recommend if you’re in your twentiesand you don’t have a house or toomany other financial obligations, about 10 to 15thousand dollars. And if you’re a little bit older, if you have a family,if you have a house, if job loss would be an even greater burdenon you financially, you probably want $30,000 or more. And the last advice on preparing for the unexpected is only 29%of renters actually have renter’s insurance,even though you can get it for about $150 a year. And so, even if you’re paying that for five or 10 years,it’s going to be less than the cost of replacinga computer or a couch or your belongingsif they’re lost, stolen, or damaged in a fire.