Saving and spending

How to Stick to Your Budget

We recently took a dive into the how and why of creating a budget.  Now we’ll look at how to actually stick to that shiny new budget. Here’s the secret: it all begins with spending awareness.  You can’t master your spending unless you first understand how you’re actually spending.  The more aware you are of your spending, the more control you’ll have over your money.

The market: What goes up must come down

It’s official: the U.S. stock market has entered the longest bull market in its history. Since the stock market hit bottom in March 2009 during the financial crisis, U.S. stocks are up well over 300%. What does this mean for you? What goes up must come down. It’s inevitable the stock market will experience a downturn, and plenty of economists are predicting sooner rather than later. Here are three things you can be doing now to prepare for the next bear market.

Simplify Budgeting with the One-Number Budget

Budgeting can be a drag. You don’t get to spend as much as you’d like on the things you want, and yet you still worry about whether there’s enough left over for essentials like saving and debt payments. But it doesn’t have to be that way.  I’m going to introduce you to the one-number budget, which flips budgeting on its head and frees you to set aside money for your day-to-day spending. 

How do your savings stack up?

Is saving important? Absolutely. Can a personal finance guru tell you exactly how much you need to save? Not a chance. I’ve never liked the use of formulas or bright lines as a measure of financial success. The best anyone can offer without knowing the specifics of your situation are guiding principles and habits, such as living below your means and planning for financial emergencies.

Is your investing plan boring enough?

Ten years ago, Warren Buffett bet $1 million that a passive index fund would outperform a basket of actively-managed hedge funds selected by his counterpart in the wager.  Buffett was right.  Boring doesn’t mean mindless.  Be thoughtful about where you hold your accounts, what you invest in, who you receive advice from, and how much risk you’re willing to take.