- What Is the Meaning of Median vs. Average Income?
You can get useful perspective about your financial condition and performance by benchmarking your income against peers using figures for average and median income. Each of these measures offers a somewhat different snapshot. While medians better reflect typical middle-of-the-road incomes, averages capture collective earnings across a group. Understanding the nuances helps savers and investors select… read more…
- What’s the U.S. Debt Ceiling and How Can It Affect Your Finances?
The debt ceiling is a limit that Congress imposes on how much debt the federal government can carry at any given time. When the ceiling is reached, the U.S. Treasury Department cannot issue any more Treasury bonds, bills, or notes. It can only pay bills as it receives tax revenues. If the revenue isn’t enough,… read more…
- We Have a $500k Brokerage Account and $250k in Retirement Accounts. How Can We Increase Financial Aid to Help Pay for Our Child’s College?
Paying for a college education is a major financial commitment. While much easier said than done, restructuring your finances can help modestly. Student aid is calculated based on a formula called Expected Family Contribution, “EFC.” This is the amount that the government assumes a family can pay for their student to attend college. For a… read more…
- What Is a Financial Power of Attorney?
Have you ever wondered who will manage your financial affairs if, due to unforeseen circumstances or illnesses, you’re no longer capable? This is not an unrealistic scenario, and it’s where a financial power of attorney (POA) comes into the picture. A financial POA can serve as a safety net in instances where you become incapacitated,… read more…
- Earned vs. Unearned Income: What’s the Difference?
Earned income refers to the money that you make from working, including salaries, wages, tips and professional fees. Unearned income, comparatively, is the money that you receive without performing work, such as dividends, interest or rental income. Understanding the differences between both can help you develop retirement planning and investing strategies, as well as minimize… read more…
- 401(k) Loan vs. HELOC
A 401(k) loan empowers you to tap into your retirement savings, while a HELOC permits homeowners to borrow against the equity of their homes. Both loans have their own set of qualifications, interest rates and repayment plans, making them suitable for different financial scenarios, depending on an individual’s specific requirements and circumstances. You may want… read more…
- How to Calculate Your Tangible Net Worth
Understanding your financial worth is a crucial component in managing your personal finances. The total value of your physical assets, or your tangible net worth, is a key measure of this. By comprehending and calculating it effectively, you can make informed decisions related to investments, debt management and future financial planning. Here’s what you need… read more…
- Average vs. Median Net Worth
Net worth is the difference between your assets – what you own – and your liabilities – what you owe. This figure represents your financial health at a given point in time, providing a snapshot of your current financial position. But understanding the distinction between average net worth and median net worth is crucial when… read more…
- What Is a Discretionary Expense?
Achieving financial stability often requires a blend of judicious planning, disciplined spending and clever investment approaches. An essential ingredient in this mix is understanding and managing discretionary expenses – those costs we often deem non-essential. These expenses may not appear significant on the surface but can shape your financial trajectory. Here’s a deeper look into… read more…
- How to Successfully Live Within Your Means
Have you ever wondered why some people seem to effortlessly manage their money despite earning a modest income? The answer probably lies in a financial strategy called “living within your means.” An essential part of personal finance, when mastered, can lead to long-term financial stability. This strategy essentially involves understanding your income, creating a budget… read more…
- 7 Wealth Preservation Strategies to Follow
In an unpredictable economic landscape, ensuring the preservation of wealth becomes a paramount concern for every individual and family. Wealth preservation involves a strategic approach to safeguarding and growing one’s assets over time, protecting them from the erosive forces of market volatility and unforeseen events. A financial advisor can help you build a comprehensive strategy… read more…
- Maximizing the Financial Benefits of Marriage
While many people appreciate the emotional and social components of marriage, the far-reaching financial benefits are sometimes overlooked. To reap these economic rewards, couples should first identify their unique financial goals and situations. Maximizing the financial advantages of matrimony involves understanding tax benefits, optimizing joint finances and recognizing other financial perks. A financial advisor can… read more…
- How to Build an Emergency Fund
In today’s unpredictable world, financial stability is more essential than ever. One significant aspect of achieving stability is having an emergency fund, which is a safety net to fall back on when unexpected financial “what-if” moments arise. In this comprehensive guide, we’ll explore how to build an emergency fund, how much money you should keep… read more…
- How to Prioritize Savings Goals
If you’re trying to save, you might be struggling with some common challenges: How do I work towards multiple financial goals at the same time? How can I make sure my financial objectives don’t get lost in day-to-day expenses or… read more…
- SingleCare vs. GoodRx: Which Is Better?
Saving on prescription drugs is a snap, thanks to companies like SingleCare and GoodRx. These platforms provide free coupons for users to lower their prescription drug prices. That said, understanding which to use can be confusing due to similarities between… read more…
- 32 Financial Planning Books for 2023
You don’t have to make a new year’s resolution to make an effort to improve your financial wellness this year. Fortunately, a plethora of books are available to help you budget, save and develop sustainable financial practices. Whether you are… read more…
- 6 Ways to Manage Your Financial Stress
Financial stress is unpleasant to endure, and it can be a detriment to your quality of life. In fact, the longer you suffer financial anxiety, eventually, it can wear down your health and even cause you to make worse financial… read more…
- The SmartStart Personal Finance Scholarship (for College Students)
SmartAsset’s mission is empowering people to make smart financial decisions, which it does by matching people with financial advisors and guiding them to educational content and calculators. It also means playing an active role in youth financial literacy. Since 2019… read more…
- The SmartStart Personal Finance Scholarship (for High School Students)
SmartAsset’s mission is empowering people to make smart financial decisions, which it does by matching people with financial advisors and guiding them to educational content and calculators. It also means playing an active role in youth financial literacy. Since 2019… read more…
- How to Save $10,000 in a Year
We would all like to save a bit more money. Whether you want a better safety net, need to pay off debt or are saving up for a big purchase, having extra cash on hand is a good thing. It’s… read more…
- What Happens to Deferred Compensation If I Quit?
Deferred compensation is a way for employees to reduce their tax burden while ensuring their economic security in their golden years. Deferred compensation plans with a long vesting period are commonly referred to as golden handcuffs because they effectively trap you… read more…
- How Much to Have in a College Savings Account by Age
College can be invaluable, potentially leading to higher lifetime earnings. However, saving for college can be a very long-term goal that you’ll need to check to verify your progress. After all, the cost of college has risen rapidly and savings… read more…
- What Is Middle Class Income Tax Bracket in the U.S.?
Unless you’re extremely rich or poor, you probably think of yourself as being part of the “middle class.” As you’re probably aware, “middle class” is an income level that describes people whose annual income is directly in the middle 50%… read more…
- How to Save a Million Dollars in 5 Years
If you knew working twice as hard over the next five years would net you $1 million in your savings account, would you jump at the opportunity? The number might seem impossible, but you can accomplish it. To save $1… read more…
- How to Become Debt Free
Getting out of debt is one of the best financial goals you can set for yourself. From a purely mental standpoint, no matter what kind of bills you’re paying, it’s a huge relief to have any kind of debt taken… read more…