Beginner Level
This is the beginner level of Personal finance.
This section encompasses financial articles for beginners who want to manage money as well as their saving and investing. The Neighborhood Finance Guy covers budgeting, life insurance, how to buy your first home, your first investments up to retirement planning, and tax and estate planning.
Personal finance depends on your income, expenses, goals, and desires. As such, it’s important to become financially literate, so you can make S.M.A.R.T.E.R decisions.
Here are some beginner-level tips: Develop or follow the Net Max Financial Plan, Run an inventory of your assets and liabilities, Start tracking your wealth (also known as Net Worth), Set a Budget you can follow, Allocate at least 15% for additional debt pay downs, at Least 20%-30%% toward savings, and the rest to your needs.
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How to Use the Kaizen Business Principles for Continuous Personal and Financial Improvement
Kaizen is the Japanese word for “good change” (Kai = change, Zen = good). Typically used in Business philosophy, it describes the continuous improvement of all functions, at all levels of the hierarchy. As such, Kaizen is both a powerful and competitive strategy. Using it, you will find that each aspect of your life can work seamlessly together. From your relationships with others to your finances, the goal is to shift your lifestyle toward success. At its core, Kaizen means that you can always take meaningful actions. As the main character in your story, you are empowered to create, build, and improve. To do better than the last time and to…
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How Carrying High Debt Costs You $500,000 for a Lifetime
American households are robbing their future by carrying high debt. How much consumer debt are we talking about? As of May 2024, the average household debt rose to $104,215. This includes mortgage balances, auto loans, student loans, personal loans, credit card debt, etc. According to Experian, the US average total debt balance in 2023 was $103,358. This amount is up over 3 percent from 2022. Younger Americans carry nearly $7,500 of revolving credit card debt month-to-month at more than 27.99 percent APY. At this rate, it should be criminal. Making minimum payments would take more than 311 months ( nearly 26 years) and $12,580 in interest to repay. That’s a…
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The ‘Millennial Dream’ of a Condo, EV, Farmer’s Market, and Travel Now Costs $6.8 Million
From EVs, expensive homes, farmers' markets, and travel; our 'Millennial Dream' is expensive. We will need nearly $7 million.
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Breaking Down Our Strategy to Achieve a $1,000,000 Investment Portfolio
A breakdown of our household's investments as of March 2024 through 2025. Still, on track with the Net/Max Financial Plan to retire early.
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Is Investing Still a Better Bet over Saving? Yes!!!
Each year comes with its share of trials and tribulations. The best part of the recent high inflation (2022-2024) is that it is over, now it’s time to realign your financial ducks in order. With the market diving in late March 2024, a few top-performing companies carried the entire economy. This presents a colossal opportunity for investors over long-term savers with cash to spare. The market priced in the losses, we are likely in for at least an 8% to 10% upswing toward the end of the year. If you are ready, it’s time to BUY low and HOLD for dear life. Buy ETFs Low, and Hold for Highs While…
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Using Whole Life Insurance for Retirement? Read the Fine Print
By now you likely heard of whole life insurance. If not, you are in luck. This is where you really have to read the fine print. If you ever run into an insurance advisor, producer, agent, or associate, just know that they are insurance sellers. They make a commission on the sale. That should be warning enough. Worst yet, they really don’t make that much annually (ref. ). This makes them very desperate which forces them to stretch the truth on the benefits of their services or products. Specifically, if you want to protect your hard-earned dollars, pay attention to the sleight of hand. Keep an eye out for the…
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The Ten Most Powerful Money Habits of Millennial Millionaires
Time to understand the Millennial Millionaire Habits. According to a 2019 report from Coldwell Banker Global Luxury and WealthEngine, there are approximately 618,000 millennial millionaires in the United States. This number makes up approximately 2 percent of the total US millionaire population and 0.2 percent of the general US population. The typical millennial millionaire has a net worth ranging from $1 million to $2.49 million. Real Estate (RE) makes up a healthy position in their portfolio. As such, wealth millennials view RE as a key way to build cash flow, leverage debt, and build wealth. While the average millennial millionaire owns three properties, they generally live near the coast in dense metropolitan hubs. These…
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Here’s The Simple Guide to Build Wealth Every Decade
Start by considering every decade of your life, as compounding seasons that lead to wealth. While stock market volatility, unemployment numbers, and CPI aren’t at the top of the societal conversation, they are important context clues on managing your money. If financial experts say that we are heading toward a downturn, it should be a mental note about your savings or lack thereof. When times are great, that’s where you should plan for when times aren’t. This doesn’t imply that you can’t enjoy the moment, however, it’s a reminder that all good things may not last forever. With the possibility of recession looming, instead of being anxious, consider your time…
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If You Think It Costs A lot Today, Check Out These 2030 Estimates
Nothing erodes Wealth faster than Inflation. If the cost is $73k in 2020, it will balloon to $95k by 2030. Are you making the adjustments?
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Sitting on Cash Could Cost You a Lot of Money
Cash comes with an opportunity cost – by sitting in cash, investors may miss out on the potential upside stocks could see in a soft landing, lack the protection that bonds can offer if a recession does happen, and lose out on the inflation protection that real assets have.
