Money 101

Money 101

Everyone needs money. It is a necessity to live. I will be trying to share with you my knowledge of money. If you have any questions, I will try to answer them.

First off, debt is usually bad. However, some debt can be good. The only good debt that I have come across is a mortgage because it is most likely leading you to a bigger payoff in the end. A car loan is not good because it does not lead to a bigger payoff. Credit cards, student loans, and personal loans are always bad. (I will confess…I am still in the process of working off my debt.) Furthermore, I am not saying credit cards are bad. I have one that I love to use because I get the rewards from the card and then pay it off every month.

Secondly, set your priorities. What matters most to you? What do you want to do with your life? Do you want to be filthy rich or just wealthy or well off?

Third, set a budget towards your priorities.

Fourth, make sure you start your IRA/401k. It is always better to start this as soon as possible. If you start earlier you will have more money in the end when you retire. Also, do not count on the government helping you when you retire.

Possibly more to come on this…..