Are You Making PERSONAL FINANCE Mistakes? #Finance

hi there doing a CashNews.co here talking about um kind of you different standard personal Finance advice that people have you know kind of read or been fed over the

last many years that may or may not be relevant still like for example generally people are told to save 3 to6 months of living expenses and then uh we had happened and people lost their jobs and were out of work for you know much longer periods of time and there was not much to be done about it

you know a unique scenario that kind of debunked that theory or the idea that you should only spend on school one year it’s worth of your first year salary and you know should any of these rules sort of be updated um my opinion on this is just globally a little bit different I don’t

generally believe in what I call personal Finance gimmicks and by that I mean these General quick rules that you know people are fed that potentially make them feel like

they’re doing enough when they may or may not be some other you know rules are like the 50 30 20 rule or the pay yourself first rule or the you know uh envelope Budgeting Rule and all that kind of stuff I mean I will say that I appreciate and value anything that gets someone

motivated to deal with their Finances and you know try to make a dent in understanding them and getting a handle on them so if that’s what it takes to get you motivated

then I don’t want to fully knock it but my feeling is that there is no substitute for actually adding up how much you make and how much you spend in a given month or year or decade and knowing the difference knowing if you made more than you spent that you genuinely saved money what’s

the point of paying yourself first if in order to do that you have to rack up a large Credit card Debt what’s the point of having an emergency fund if by creating it you create more Credit card Debt like the only way you know

if you’re effectively doing any of these things is by tracking your Finances with some sort of software I use Quicken as I always say but you can use something else and

knowing definitively how much you made how much you spent and what how much money you spent on what meaning how much do you spend on mandatory expenses like housing and utilities how much did you spend on discretionary and then the net result technically is how much you actually saved did you get

that Savings into an investment account and is it invested appropriately according to your age and your goals the next step and understanding your personal none;">Finances and the basics of Income and expense and net Income or net loss is having a plan a long-term plan that tells you I want to potentially retire here and in between I have some other major expenses largely kids colleges they’re

probably the biggest major expense and or potentially helping aging parents considering where I want to be by when how much I’m going to need and what some of these giant you know other expenses along the way are going to be how much do I need to save every year how much return does that

saing Savings need to get and how much do I keep you know having to contribute to that so that I reach the financial goal that I’ve put on a piece of paper or AKA a spreadsheet if you’re not doing the work and doing the math I don’t think that these gimmicks are

really going to help most people in the long run the old adage is you can’t see the forest through the trees I think these gimmicks are just like looking at the trees and not realizing what the forest has in store for you so that’s my feeling on that topic overall uh thanks for watching

I’ll see you in the next CashNews.co