Budgeting and Your Magic Number
Meet your formal plan for your financial life: The Budget. Just like losing weight and pursuing a career, your finances need a game plan. You can’t expect optimal financial success if you’re not aware of where your money is going. If you’re looking to take the guesswork out of your success, creating a budget for yourself is essential…
Net Worthy Nugget #4.4
Your monthly savings goal is super important. You’ll arrive at this specific, quantitative goal after careful thought and consideration, and you’ll only change it on rare occasions. It's called your "magic number."
Net Worthy Nugget #4.6
One-time windfalls represent special opportunities to accelerate your progress, and you should consider them carefully. Before deciding what to do with a windfall, impose a cooling-off period.
Net Worthy Nugget #4.7
A pay raise is another special opportunity to accelerate your progress. Decide how to handle such an increase consciously and deliberately. Consider this strategy for building net worth: a little for now, the rest for the future.
Hey, Where’d All My Money Go?
Streams are ongoing, repeated expenses, and they’re responsible for silently and steadily draining your budget. They come in three flavors: precommitted, prearranged and everyday spending. You’ve heard that "little things add up," but you’ll be shocked at just how much they add up to when this calculator shows you.