Admin

Posted by

Marion Syversen Marion Syversen
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
edge contributor

Share

A financial pyramid for your new year

Rate this item
(1 Vote)

Learnvest published a Financial Pyramid for making healthy financial decisions, and I thought it was a great way to start the new year. This is what to aim for instead of perhaps spending every spare bit of money on 'stuff.'

The basics

The bulk of your focus is on this first point. It sets the foundation for the rest of the spending that you do and it is wisdom that you have already heard. But today will be the day for your really understanding how to do this! I'm sure of it.

After you pay for your fixed expenses, such as rent or mortgage, car payment and debt repayment, you have the variable expenses of food and 'life.' Life is shopping, allowances for the kids. Life is lunch money and taking the dog to the vet.

Those of us who have lost our financial way spend money on life first, and then whatever we have left over we use to try to pay our bills.

But if you will do the fixed expenses first, I would like you to set aside - in a place not easily accessible if need be - money for the foundation of the pyramid. And that is money set aside as an emergency savings account. After that, modestly spend money on food and the other desires that you can afford.

Also in this foundational bottom block of the pyramid start saving for retirement and pay off 'bad' debt. Bad debt is unsecured, typically credit card, debt. Add $5 extra per month, or $50, or some amount to one of the credit cards every month because it's not the size of the payment that matters. It is consistency that will pay this puppy off - all while not ADDING more debt.

Protection

You may stay in the foundation block for years, steadily paying off one credit card debt and then another, while adding to your retirement account and continuing to make contributions to your emergency savings account. That's just fine. Because slow and steady wins the race.

But once you feel like you can let that go and grab the next challenge, how about making sure you have the insurance you need in addition to what minimum that you have? And after unsecured debt is paid off, now you can begin to pay off 'good' debt, like your house.

Extra

After you have made such a solid foundation to your finances and life feels secure, the third block in the financial pyramid is to start saving for travel or a vacation home. What are your dreams? Now is the time to begin putting money aside for that next vision. Using an investment account to help you achieve those goals may be just what will get you there.

Feeling spoiled

Finally, wherever you are on the savings / wisdom trail, always use a small percent for fun. Life is work sometimes. And it is also most certainly a blessing. But it can also be hard. So make sure there is a small percentage used for fun you pay for - because as a frugal friend, you know there is plenty of fun that is free. Fun needs to be baked in to your plan. But vacation is only fun when you know you aren't robbing money that should be used for paying bills.

We aren't born knowing financial foundational truths, and learning where to start and how to prioritize takes time. I think this financial pyramid is a great help getting focused on a financially healthy new year!

Note:Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Wall Street Financial Group, Inc. and Norumbega Financial are separate entities, independently owned and operated. (CR11240)

196 comments

  • Comment Link JeraldBoiny Saturday, 13 January 2018 10:42 posted by JeraldBoiny

    getting viagra prescription australia
    order viagra online
    allpills shop viagra generic
    online viagra
    generic viagra sildenafil citrate 100mg
    cheap viagra
    viagra price 100mg
    best price viagra
    can get viagra prescription walk clinic

  • Comment Link Josephlok Thursday, 11 January 2018 22:26 posted by Josephlok

    serial number autocad 2000
    autocad download
    price autocad
    autocad viewer
    download autocad structural detailing 2011
    autodesk autocad
    autodesk autocad prices
    autocad 2017
    autocad mechanical 2015 download

  • Comment Link BrianNex Thursday, 11 January 2018 10:07 posted by BrianNex

    autocad inventor 2013 price
    autocad lt
    autocad online jobs in dubai
    autocad
    autocad mechanical 2012 product key
    autocad 2018
    2012 autocad serial number
    autodesk
    autocad 2002 full version download

  • Comment Link Pamelalam Thursday, 11 January 2018 08:44 posted by Pamelalam

    loans no credit check
    payday loans online no credit check
    payday loans online no credit check
    payday loans no credit

  • Comment Link MarvinSnino Wednesday, 10 January 2018 17:13 posted by MarvinSnino

    cd key autocad 2017
    autocad lt
    pdf to autocad software
    autocad viewer
    getting started in autocad
    autocad
    autocad 2017 64 bit installer download
    autodesk
    autocad 2014 full version

  • Comment Link Aprillic Monday, 08 January 2018 08:25 posted by Aprillic

    free slots casino games
    free casino slots
    slots casino games
    free casino games slot machines

  • Comment Link Mariagop Sunday, 07 January 2018 17:40 posted by Mariagop

    casino games slots free
    freeslots
    online casinos
    online casino real money

  • Comment Link Wilbertfuh Sunday, 07 January 2018 05:24 posted by Wilbertfuh

    slots casino games
    slots casino
    casino games slots free
    freeslots

  • Comment Link JackieJoula Tuesday, 02 January 2018 19:47 posted by JackieJoula

    online keno for mac
    online casinos
    online gambling usa legal
    casino online
    play slots online game

  • Comment Link Teresadam Monday, 01 January 2018 04:39 posted by Teresadam

    casino online
    free casino games
    casino games
    free casino games

<< Start < Prev 1 2 3 4 5 6 7 8 9 10 Next > End >>

Leave a comment

Make sure you enter the (*) required information where indicated.
Basic HTML code is allowed.

Advertisements

Website CMS and Development by Links Online Marketing, LLC, Bangor Maine