How many of us are just one emergency away from a financial meltdown? I’m here to help you navigate the treacherous waters of money management, ensuring you're equipped to face unforeseen challenges without capsizing your financial ship. This episode is a treasure map to financial security, with X marks the spot on strategies for budgeting, saving, and stepping out of the paycheck-to-paycheck dance. We'll explore the disconnect between perceived financial savvy and the reality of empty retirement accounts, especially among millennials, and I'll offer practical tips to turn the tide in your favor.
Retirement may seem like a distant horizon, but I'll show you why it's crucial to set sail early and how to chart a course that will lead to tranquil waters. With the guidance of a financial planner, we'll tackle the psychological hurdles of investing and find the sweet spot between risk and reward. Let's embark on this journey together, arming ourselves with the knowledge and tools to claim our financial independence and ensure that when the time comes, our golden years are truly golden. Join us and chart your own path to a secure financial future, underpinned by wisdom and well-timed contributions to your nest egg.
For more information and resources on financial independence and situation click the link below:
How many of us are just one emergency away from a financial meltdown? I’m here to help you navigate the treacherous waters of money management, ensuring you're equipped to face unforeseen challenges without capsizing your financial ship. This episode is a treasure map to financial security, with X marks the spot on strategies for budgeting, saving, and stepping out of the paycheck-to-paycheck dance. We'll explore the disconnect between perceived financial savvy and the reality of empty retirement accounts, especially among millennials, and I'll offer practical tips to turn the tide in your favor.
Retirement may seem like a distant horizon, but I'll show you why it's crucial to set sail early and how to chart a course that will lead to tranquil waters. With the guidance of a financial planner, we'll tackle the psychological hurdles of investing and find the sweet spot between risk and reward. Let's embark on this journey together, arming ourselves with the knowledge and tools to claim our financial independence and ensure that when the time comes, our golden years are truly golden. Join us and chart your own path to a secure financial future, underpinned by wisdom and well-timed contributions to your nest egg.
For more information and resources on financial independence and situation click the link below:
Good morning, good afternoon, good evening, good night. Wherever you are and however you are listening, welcome to Fruit Blenders Podcast. On today's episode, our main topic and subject is financial situations Financial situations Financial Situations 34% of all Americans have $0 in their savings accounts. 66% of all millennials have zero retirement savings. 72% of households do not have written financial plan. They don't. However, 83% of people that set financial goals feel better about their finances after just one year.
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These are five scary financial facts. They are so what. That said, 54% of Americans live paycheck to paycheck. According to a recent Lending Club survey, more than half of the US population lives off paycheck to paycheck. 40% of people earning more than a hundred thousand dollars per year do the same.
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Ask yourself this question how can I avoid this? Well, this is how you can avoid this. How can you help yourself avoid this? Always remember it is never too late to create a budget and start living with certain restrictions.
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Restrictions in life, just just generally in life, you must live on restrictions, certain restrictions, for example, shopaholics. I know, I know, I don't want to judge here, but we all have a shopping habit or a problem, even when we are collecting items. I get it, I get it. We've all been there, but stop spending so much money and live on certain restrictions. When you create a budget, you know where your money is going. You do, in addition to that, always keep track of your money, where it's going, what you're spending it on, what's it going towards to always keep track of your money. A lot of millionaires and billionaires are always tracking their money in their stocks, so have an app or, um you know, checking book receipts. Make sure you keep track of your spendings.
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In addition to the availability of budgeting apps, there are also debt professionals and debt relief attorneys whose mission is to assist in such efforts. Remember, there's always financial help out there. There's a lot of resources when working with such professionals. Debt settlements can be made without doing damage to your credit score, which is facts, which is true. I've done this before. I've fixed my credit and I'm still working on it, but you can always fix your credit. You don't have to act like you have the worst credit in the world. Okay, you can always fix your credit. There is a time to invest in your credit score.
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Paying for an emergency is something 61% of Americans cannot do. It's true. I mean. Look at our situations right now. A recent bank rate study found more than three out of five Americans are unable to afford $1,000 emergency. This statistics includes families with a household income of excess of $100,000 a year 100 grand a year, 100 grand. So when it comes to home repairs or a visit to the doctor, most Americans would not be able to pay that much money. They won't. I mean, it's not just Americans, it's worldwide. In general. It's worldwide, I mean. But Canada has free health care. So if you're in canada, yeah, you got that handed to you, you could all right, you're in good hands. But in america they got the best medical procedures out here, they got the best resources, the best technologies. But there's also other countries who are doing better as well. So let's not, you know, get them out of the way. Furthermore, a federal reserve study found that 37% of Americans lack enough money to cover a $400 emergency expense. That means more than one third of Americans are single traffic ticket away from their financial house of cards falling. So ask yourself this how do I avoid being a part of this statistic? How, how do you avoid being a part of this statistic? How, how do you avoid being a part of this statistic?
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The importance of an emergency fund can never be understated or overestimated enough. Starting an emergency fund takes conscious effort. It doesn't just happen. Financial experts generally recommend having an emergency fund that is the financial equivalent of 6 to 12 months living expenses. Keep in mind this is not the financial equivalent of your paycheck for 6 to 12 months, but rather just the living expenses like food, shelter, utilities, etc. The basics of life, etc. The basics of life. When doing so, here are a few things to keep in mind.
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Don't try to save everything at once. Instead, start small, with a specific goal that is measurable and achievable For some individuals. Small with a specific goal that is measurable and achievable. For some individual individuals, this may be $100 into savings, while for others it could be $500 into the savings. Whatever the amount, be sure it is something you can achieve within 60 days. 60 days. Once this first goal, whatever it may be, is achieved, quickly add to it. So what? $100 may become a new goal of $250, or $500 may become $750, and so on. Pay yourself first. Always remember that in any business, any profits, any assets you have, any savings you have always pay yourself, always pay yourself. Be sure to set aside savings at the time you have it, such as when you receive your paycheck. Don't wait to do this at the end of the paycheck period, as this never works.
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Only 24% of millennials have basic financial literacy. They do, we do. I mean high school. We never got the right education in financial literacy, so we learned a few numbers here and there, but they never taught us how to you know bounce a check or any of that stuff. How to bounce a check, how to you know save some of that stuff, how to balance a check, how to save some money, put it aside, do taxes. All that stuff was never taught at a sad school, so it's good to teach yourself. While a national Indulgment For financial education study Found that 69% of millennials Consider themselves to be financially Knowledgeable when tested. Found that 69% of millennials consider themselves to be financially knowledgeable when tested, only 24% showed basic understanding. Only 8% of millennials tested had what was considered high financial knowledge.
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If you're a millennial, what can you do? Ask yourself that question what can I do? Well, one simple truth is that most individuals learn how to handle their finances based upon the practice of their parents. That's, that's true. I mean, I just watched my parents balance the checkbook. Save some money, put something aside, do their tactics. I've watched my parents save money for so long and they invest.
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So it's good to have parents who are like you know your role models, who are actually teaching you how to you know work on your financial situation and all that stuff. It's good to have parents like that and always watch what your parents are doing with their money. That's why parents never tell you how much they have or how much they spent or this and that, and you may complain, hey, why can't I get this today? Why can I not get that today? But remember they're working on saving money. They're not worried about getting you the best video game or coolest clothes or, you know, buying you know a couple fun toys and all that stuff. They're not worried about that. They're worried about saving money and putting it aside because family emergencies happen. So remember that. Be easy on your parents. Understand that they're actually saving money for the future. So if your parents properly handled their finances, then chances are you had a head start on doing the same. However, if the opposite is true, then you may have a thing or two to learn.
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Obviously, one hard and painful way to enhance financial literacy is by learning from your mistakes. If you prefer an easier or less harmful way of gaining financial literacy, then make a conscious effort to do so. Whether it be articles, blogs or YouTube videos, information abounds to assist you. Be sure to also be sure to also choose a financial partner, or partners that provide such assistance, to help you on your financial journey. That is true Always find a group of people that you can trust with money moving things around, and they know what they're talking about. So always keep those friends close to you. Be sure to also choose a financial partner. Whoever your partner is, whoever you partner with should provide workshops, information, as well as well as one-on-one assistance to meet your needs. And, previously noted, having a budget and emergency fund will go far to help you in your efforts in the future.
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21% of Americans don't save anything from their income. They don't save anything from their income. They don't. One in three Americans have saved zero for retirement. Given all we know about the importance of starting to save at a young age, the compounding interest of money, etc. It is hard to believe 33% of Americans have saved nothing for their golden years.
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So what are you waiting for? Whether you're just starting out well into your career, get into the habit of contributing to your retirement. Always do so. Even if you start a small business, do so sooner rather than later. When you do, be sure you include the assistance of a financial planner who can assist you during the process and assess your personal risk tolerance. It is also important to know that your money is physically there and psychologically there. Remember people who are ultra conservative and afraid of losing money also miss opportunities for growth. Remember that that will do for our episode here, and thank you to those who've been tuning into the podcast and for those who are new, thank you for tuning in as well. If you need more resources, there will be a link below, and if you want more some merchandise, there will be a link below as well. See you next, next episode. Thank you.
