I use practical real life situations to teach and apply financial principles and concepts in your day to day life. There are awesome textbooks available that teach you finance, however there aren’t many that teach you how to apply it to your daily life. In the educational posts below, I pose a real life situation. Then I illustrate how financial principles can be applied to make better decisions in real life on a daily basis.
Personal Finance Checklist:
- Checklist for Personal Finance – a prioritized list / guide
- Importance of having Beneficiaries – emphasizes the importance of having the correct beneficiary information and the issues you could face if the information is incorrect or missing.
- Short Term and Long Term Disability Insurance – disability insurance is basically insuring your paycheck if you are unable to work due to illness or injury. Read more to see how important it is to have disability insurance.
- Estate Planning – Wills and Living Trusts – importance of having a simple Will. Provides an overview of Wills and Living Trusts, explains the most common legal terms used, and helps you understand what is involved in the process at a high level.
- Estate Planning – Power of Attorney Health and Finances – an overview of Living Will (which has nothing to do with the traditional Will), durable powers of attorney heath, and durable powers of attorney finances.
- Life Insurance – the importance of having life insurance, what should be considered when determining how much insurance is needed, the different methods of calculating how much life insurance is needed.
- Emergency Funds – in this post, I highlight the importance of emergency funds, share an anecdote from my personal life and recommend a strategy to build up your emergency funds.
- Budgeting / Cash flow management – importance of budgeting and living within ones means.
- Retirement Planning – in this post, I provide a high level overview of all things to be considered as part of retirement planning.
- Pay off High Interest Debt – in this post, I provide an overview of the two commonly used strategies – Debt Snowball and Debt Avalanche – to pay off high interest debt.
- Do you know your Net Worth? – What is net worth? How to go about calculating your net worth? How to track your financial well being?
Time Value of Money:
- Time Value of Money – this is a fundamental corner stone lesson on personal finance. If you take the time to understand this concept, this should help you make very effective financial decisions in your day to day life.
Debt Free Living:
- Getting Out of Debt – I share my personal life experience on how I got out of debt.
- The Fastest Way to Pay Off Credit Card Debt – another credit card debt pay off strategy.
- Build Your Emergency Funds – practical tips to live a debt free life and build up an emergency fund.
- Best Place For Emergency Funds – emergency funds must be kept in a savings account and must not be invested in stocks / bonds. Learn the best place to keep your emergency funds while maximizing your yields.
- Should I go to college? – the financial benefits of getting a college degree. A financial comparison of high school degree vs. college degree over a life time.
- How much should you send on a College Degree? – a practical guide to think through how much you want to invest in getting a college degree. It also shows the impact college debt can have to your personal finance if it is not carefully thought through.
- Paying for College Education – insight into practical ways to pay for college.
- 529 College Savings Plan: An Overview – provides an overview of how to take advantage of the 529 college savings plan
- Top 529 College Savings plans – an overview of the top 4 Morningstar gold rated college saving plans and things to consider when choosing a college savings plan.
- IRA – College 529 Savings Plan Alternative – how an IRA could be used as an alternative to college 529 savings plan
- Alternatives to 529 College Savings Plan – Provides information on what alternative investment vehicles are available as viable alternatives to the 529 college savings plan
- Sally Has a Retirement Question – this is simple lesson on to calculate required nest egg for retirement and how much monthly contribution needs to be made to achieve the nest egg.
- How much should you save for retirement? – A practical step by step walk through on how much you should save for retirement. You can use this post as a guidance and calculate the nest egg you need for your retirement by changing a few variables.
- Know your Paycheck – A guide and introduction to saving money for retirement.
- Managing 401k Investments – A guide that highlights the advantages of passive investing
- Understanding IRAs – Traditional, Roth, and Rollover IRAs – provides a high level overview of the types of IRA available.
- Understanding Annuities – an overview of what an annuity is with an example scenario and also explains the various types of annuities that are available today.
- Do You Know Your Asset Allocation? – as the name implies, do you know your asset allocation?
- Asset Allocation Rule of Thumb – simple guide that teaches how to allocate your assets in your investment and retirement accounts.
- How Much Does 1% Cost You? – Fund Management fees can cost you very dearly over your life time. Provides practical guidance on how funds with high management fees eat into your nest egg.
- Target Date Funds – What You Should Know – They are expensive and the performance is not guaranteed or pegged against popular industry standard benchmarks. My intent is to provide you full disclosure on what you should know about target date funds.
- My Retirement Asset Allocation – In this post, I share my retirement asset allocation. I plan to send out periodic updates on how my retirement account is performing.
- 3 Strategies for Re-balancing Your Portfolio – explains how to periodically rebalance your portfolio to maximize returns.
- Interest Rates – Fed Fund Rate, Fed Discount Rate, Prime Rate, CD Rate – an introduction of what Fed Fund Rate is, and how the Federal Reserve Bank controls interest rates and how it impacts our investments and the economy.
- Understanding APR, APY, and EAR – this will help you and get a good understanding of what to look for when you go shopping for CD’s or go looking for loans.
- CD Laddering – explains how CD laddering works and why the yields with laddering are better than renewing CD’s annually.
- What is tax equivalent yield? – When you compare investments that are taxed differently, always remember to look at the after tax return for a fair comparison. An example is used to illustrate the point.
- Understanding Perpetuities – how perpetuities can be used in the valuation of stocks, bonds, and future incoming fixed periodic cash flows.
- Power of Compounding – how compounding works and how you could leverage it to your advantage.
- Dollar Cost Averaging – what is Dollar Cost Averaging? Why should we dollar cost average our investments?
- Dogs of the Dow: Investment Strategy Overview – a clear and concise introduction and overview of Dogs of the Dow Investment Strategy.
- How To Invest Your First $1000? – simple, easy, and introductory approach to investing.
- Shorting DOW – What is short selling? How to short the DOW without the need for a margin account?
- Life Insurance – the importance of having life insurance.
- PolicyGenius – an online insurance broker platform that helps you find the best value for your money when you are shopping for a term life insurance.
- Psychology behind Automatic Saving or Spending – Saving money takes discipline which means exercising self control. From a psychological perspective, learn why automatic savings helps.
Credit Report and Credit Scores:
- Understanding Credit Reports and Credit Scores – helps understand what a credit report is and how credit scores are calculated. It also provides free resources to obtain credit reports and credit scores.