Article Excerpts:
"At the heart of many financial frights are unforeseen crises, such as losing your job or receiving a mammoth medical bill. How best to deal with that? Save up. That means putting away three- to six-months’ worth of living expenses as an emergency fund. At the heart of financial stability is keeping up with how much you spend, save and owe. That’s also integral to carrying out a long-term financial plan, such as saving for college, retirement or to buy a home. How to get there? Make and stick to a budget. Start by calculating your fixed household expenses, such as your mortgage or rent, utilities, car loan, insurance, and so on. Carve out a realistic amount of money for variable costs, such as gas, groceries and entertainment. Once you figure out a monthly plan that enables you to gradually move toward your financial goals, stick with it. Concerned you may not have enough money for a comfortable retirement? Start by using an online retirement income calculator to estimate how much you’ll need." Budget: financial plan that shows expected income and expenditures, indicates anticipated surplus or deficit
Savings: part of current income that is not spent Consumption: part of individual's income that is spent on goods and services rather than saved Consumer Credit: ability to acquire goods and services now in exchange for payments in the future |