Living beyond financial means and incurring large amounts of consumer debt are increasing among individuals and families. Whether your income is large or small, creating a budget and adhering to it, will allow you to avoid debt and make better choices about needs and wants. When you create a family budget it is not so much the size of your income that determines success, but the way it is spent. The first step is to identify payments and bills and start to allocate your monthly income accordingly. Make categories for each item such as; rent/mortgage, car payment, utilities, food, household items, entertainment, vacation, household repairs, personal spending, savings.

Living on a Budget

It’s the age old question asked by financial advisors, “Can you really afford it?” Unfortunately, most Americans, working as trained professionals in reputable industries, and filled with an innate sense of entitlement, will answer that question “Yes. Of course I can afford it.”

And why not? Certainly after a 40-50 hour exhausting work week you should be able to afford a decent wardrobe, your kid’s tuition for summer camp, and a nice family vacation. So why, when we work so much and so hard, are Americans in debt? Why do our salaries always fall short of what we need to survive?

The Right Question

It's a phrase you have heard over and over, "diversify your portfolio", but what does it mean to someone with little or no financial background?  The world of stock markets, volatility and portfolios in general may not be all that familiar.  Fortunately, in this day and age there are ways to diversify that don't require you to be all that savvy when it comes to the stock market.  There are a number of investments to choose from that do most of the diversification work for you.  This article shows the many ways to diversify your portfolio, going from the most difficult to the easiest.   

The Easiest Way to Diversify Your Portfolio

In the big world of investing, it seems we hear a lot about what securities to invest in, but not as much about what types of accounts to invest in.  There are so many different types of investment accounts, each covering a different purpose, and new types of accounts seem to be created weekly.  What are some of the basic types of investment accounts and what can they do for you?  This article covers some of the accounts that are available currently and why you would use each one.

Investment Accounts

Everyone knows the importance of setting aside savings.  Whether it's for retirement, emergency funds or saving for the family vacation, it is something that we should all be doing.  Yet sometimes this isn't as easy as we would like and at the end of the month our money is spent without setting anything aside.  The financial services industry has become aware of this and has created tools to help us save.  If you have difficulty saving, these tools may be your best way to ensure you have savings for whatever comes.

Ways to Help You Invest

When it comes to figuring out your financial future, there are some investing tools that are invaluable.  How much should you save for retirement?  When should you start saving?  Should you rent or buy your home?  What kind of mortgage can you afford?  Should you choose a Roth IRA or a Traditional IRA?  How much will my children need for college?  These are all questions that can be better answered using some of the many online calculators and financial planners.

Online Investing Tools

One of the biggest contributors toward personal peace is financial peace.  Sometimes it is assumed that financial peace is only for those with endless amounts of money.  In actuality, you can be financially secure at almost any income level.  Avoiding common financial mistakes is the first step.  This article discusses some mistakes that many of us make and how to avoid them.

How to Have Financial Peace

Wealth seems to be everyone's dream; the ability to relax a little more, to not stress so much about finances and to enjoy the "good life."  So often it is believed that wealth is only attainable by those with large incomes.  Those with smaller incomes may not put anything aside, assuming such small savings won't make enough of a difference in the long run.  In my experience in the financial services industry, there were several times when I would help an elementary school teacher or janitor with their sizeable 403(b) account.  Obviously for them, small savings over time made a big difference.  In the same category are those who have large incomes and assume they always will.   They constantly spend to the top of their income level and set little or nothing aside for the future.  Yes, I also remember helping doctors or attorneys take loans out of their 401(k) accounts.  I found that it wasn't so much what you made but everyday decisions that determined long-term success.    

   When I once asked a janitor of an elementary school how he had accumulated his 1.7 million dollar 403(b) he said, "I just started putting money into it when I first came to work here, a little bit each paycheck."  Now, 40 years later as he approached retirement with a steady pension and a large 403(b) account he was financially wealthy.  Avoiding financial mistakes is the key for anyone to retire well.  This article lists some of those mistakes and ways to steer clear of them.

How to Avoid Ruining Retirement