Sharing insights since 2007 on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom!
Liquidity is incredibly important in a time of crisis, but just how important is it to you to have cash lying around just in case? What even is liquidity?
In financial terms, liquidity is the measure of how easy it is to turn an asset, such as stocks or real estate, into cash on demand. Stocks are considered to have high liquidity because there are basically always buyers willing to take your shares off your hands. A house, on the other hand, is considered fairly illiquid because it takes time to market and sell your home even in the hottest of markets.
Most people, however, think of having liquidity as it relates to their own personal finance. When someone talks about the importance of liquidity, they are almost always talking about the need to have enough cash in a crunch to weather a financial storm. What do they mean and why is it important? Let me tell you about what can happen if you don’t have liquidity. [ continue reading… ]
The idea is simple, really: Don’t put all your eggs in one basket.
If you’ve managed to save some money, and you keep saving each year, good for you! Being in a place where you’re (presumably) free of bad debt (such as credit card debt) and can save each year is a very good place to be. But it’s not worry-free. If you have a stash of money, you need to invest it – otherwise you risk having it slowly lose its value because of inflation. But where to put your money? That’s where asset allocation becomes your best friend. [ continue reading… ]
Used car shopping can be intimidating. After all, a car has about 30,000 parts. Making sure they are all in good working order is no small feat, but this post will tell you how to pick the gems from the lemons.
Understand Your Needs
Understand your needs before you hit the used car lots. This way no salesperson can talk you into a sports car when you really need a minivan. To understand your needs, think of what currently irks you about your current car. Is it too small? Is the ride harsher than would be ideal? It’s also helpful to think years into the future. If you are planning on getting a dog or buying a house – what kind of vehicle will you want then? How reliable will the car be as you put more miles on it?
I find the best approach is to discover exactly what car you want before you visit car lots. Look online first. A mistake people often make is buying a car simply because it seemed alright. A vehicle is a decision you’ll have to live with for a long time. Make sure you get what you really want. [ continue reading… ]
Unless you’ve been living under a rock, the stock market has been roaring higher in the last few months. The move’s been so violent that some of my friends are actually talking about how much money they’ve made recently, forgetting that it’s only been a few months since the dark days when everything seemed to be falling off a cliff.
On the other hand, some of us are extremely worried right now because it seems like the economy is about to collapse and the stock market prices with it. Sure, it’s safe to say that the stock market as a whole offers positive returns over the long run.
But if you have invested money you need in the near future into the market, then now is the time to think about slowly transferring it to safer investments. The reason has nothing to do with whether the market will go up or down in the near future but rather the fact that no one can predict what stock values will do in the short term. [ continue reading… ]
We all make money mistakes, but some bad financial moves seem to be more characteristic of women. I’m sure there are plenty of male-specific money mistakes too, but as a woman, I can probably write better about my own gender. So here they are – money mistakes that women tend to make.
Spending Too Much On Clothes and Shoes
If you’ve read my previous posts on this blog, you already know I believe that Women Should Save More, and Spend Less on Designer Shoes. It’s not that looking good or being fashionable are not important – it’s just that it’s absolutely possible to look great on a budget, and buying into the “you must spend ridiculous amounts of money on clothes or you won’t get a promotion” theory is, in my opinion, a big mistake. [ continue reading… ]
I read an article recently that centered around statistics that indicate Millennials (the generation born between roughly 1980 and 2000) are waiting longer to have children.
One of the main reasons they give for waiting is their financial situation. Or more specifically, how much debt they’re in or how much money they want to save.
More than any previous generation, Millennials are ladened with thousands of dollars in student loan debt and less initial wealth when they become independent.
The plan to wait at least a few years after graduating college to pay off loans, and settle into a career before having children makes sense financially. But does it really make a difference?
Before making the decision to wait to have kids until you can afford them, make sure you understand the entire situation. Here are a few pros and cons.
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