Master the Money Basics
How to Budget
The only way to save money through budgeting is to budget within your means. To effectively create a budget, you need to know your true income taking traditional and nontraditional sources into consideration (and don’t forget taxes!), calculate every single one of your expenses, and compare the numbers. Next, figure out how much you should spend on your fixed costs, financial costs, and flexible spending based on your average income. Make your projected expenses match up with your actual income through tightening your budget in some areas and even loosening it in others; then, follow your budget to the letter.
Teaching Children Basics
To raise your child you set a bedtime, serve healthful meals, and show them love and guidance. Make sure you extend your care to teaching your child about finances as well. Eventually, your child should be a self-sufficient adult who can live within his or her means. To help them on the way to monetary responsibility, show your child concrete examples of receiving a paycheck and spending money, help them learn to budget, and whenever possible, make this process fun. Use games with a financial point of view and keep the conversation going over the years.
High and Low Risk Stocks
Terms like “high risk” and “low risk” may seem daunting when it comes to the stock market: if you’re a novice, all stocks might feel like they have a high level of risk for the investor! However, it isn’t hard to figure out the level of actual risk a stock has. Learn how to look at a stock’s past performance as an indicator of future performance and familiarize yourself with how to predict whether a stock will have a high or low payoff over time. Invest wisely to minimize your risk and raise your potential for making a profit.