Tag Archives: Finance Tips

How To Calculate What To Save And What To Spend

**How To Calculate What To Save And What To Spend**



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Sallie Krawcheck, co-founder and CEO of Ellevest and a former Wall Street executive, breaks down a simple formula to help you figure out how much of your income you should spend and save.

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How To Calculate What To Save And What To Spend
even if you don't know what your goals are try to start as soon as you can and what you should shoot for is of your take-home pay 50% of it should go to needs it's your rent that's the car that you need to drive to work that's your work wardrobe 30% to fun because we're only on this earth a short amount of time we need to have fun and 20% goes to future you whether that's grandma Esther you or whether that's 10 years from now buy the home you beginning to sock that away now for a lot of folks that can be difficult to get to so start with 1% goes to future you 2% do what you can start where you are but you know support grandma Esther in some way because you know at some point you're not gonna be able to support yourself

Easy Ways To Save On Insurance | CNBC Make It.

**Easy Ways To Save On Insurance | CNBC Make It.**



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NerdWallet lays out seven ways to save on homeowners insurance to get the protection you need at a better price.
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Easy Ways To Save On Insurance | CNBC Make It.
tip number one bundle your auto and home insurance policies many providers such as estate progressive and American family offer discounts which could save you as much as twenty percent tip number two make your home more secure you can qualify for cheaper rates by upgrading systems like plumbing and electrical or by adding features that make your house tougher to penetrate like storm shutters and deadbolt doors tip number three look for more obscure discounts simply setting up automatic bank payments or being a new homeowner could qualify you for discounts so make sure you ask tip number four raise your deductible a common deductible is between 500 and a thousand bucks making that number higher could bring your rate lower tip number five shop around since your provider may no longer be offering the best deals it always pays to browse around and compare you

How To Save Money And Spend Guilt-Free With Ramit Sethi | Better | NBC News

**How To Save Money And Spend Guilt-Free With Ramit Sethi | Better | NBC News**



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Here’s how to hit your savings goals while still spending guilt-free, according to Ramit Sethi, bestselling author of “I Will Teach You to Be Rich.”
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How To Save Money And Spend Guilt-Free With Ramit Sethi | Better | NBC News
no I'm not gonna tell you to keep a budget you don't need to most budgets are backwards looking you're looking at what you spend in the last month you're probably feeling guilty about it I have a different approach instead of looking backwards I want to look forward I want to think about where my money should go I want to set up the systems to automatically make it happen and then I want to live my life guilt-free and spend extravagantly on the things I love as long as I cut costs mercilessly all the things I don't I call this a conscious spending plan all of us have different things that we intuitively love spending money on some people want to have a beautiful apartment or a really nice car other people want to travel one month a year all of these things are totally valid but we all choose our own rich life here's a really simple way to look at where your money should be going 50 to 60 percent of your take-home money should generally be going to fixed costs these are things like your rent your mortgage your utilities at a minimum 10 percent should be going to investments these are long-term retirement investments next is short-term savings goals this is where five to ten percent of your money will go and these are things like saving for a down payment on a house gifts or a vacation and finally this is my favorite part twenty to thirty five percent goes to guilt-free spending this is eating out at restaurants buying new clothes taking your friends or family out with you on vacation whatever you want for your rich life that's where this money goes so I gave you these rules of thumb how do you create your conscious spending plan well I want to introduce something called the think want do technique just take a blank piece of paper and write down how much you think you are spending in each of these categories write down how much you want to spend in these categories and then the third part is to find out how much you actually do spend in these categories so take a look at your spending over the last 30 days find out how much money is going to your fixed costs versus your investments savings and finally guilt-free spending and now you are going to know what type of changes you need to make to flow the money for your conscious spending plan don't apologize if you have something you absolutely spending on use your guilt-free spending to unapologetically pay for the things you love but make sure that the rest of your conscious spending plan is hitting those numbers after you've done this exercise you might find that you're overspending in a couple of areas that you want to cut back down that's totally normal for me it's travel and clothes so narrow it down there try to make your changes to those big areas and don't worry about all the other stuff you can tackle that stuff later one way you can do this is to use the envelope method the envelope method can literally beat physical envelopes that you fill with cash at the beginning of a month and you say this is my guilt-free spending money once it's gone it's gone that will train you on how to correct your spending behavior you can also do this virtually through checking accounts and debit cards whatever you choose just remember to pick those couple of areas that you really want to target and cut your spending gradual imagine waking up in the morning knowing that your money is going where you want it to go and the money that you have available to you is guilt-free a conscious spending plan allows you to create your rich life and to never have to apologize for spending on the things you love hey NBC News viewers thanks for checking out our YouTube channel subscribe by clicking on that button down here and click on any of the videos over here to watch the latest interviews show highlights and digital exclusives thanks for watching

How To Manage Credit Card Points And Debt

**How To Manage Credit Card Points And Debt**



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Chris Hutchins has over 10 million credit card points. He started his journey more than a decade ago with an initial goal of 1 million points. For Chris and his wife Amy, credit card rewards allow him to indulge in travel, something he loves but would never otherwise splurge on. Here are his top 3 tips for managing credit cards.

1) Pay off your credit cards in full each month. Chris stresses that before getting into the credit card rewards game you should make sure you’re comfortable paying your debt off in full every month. According to Chris and other personal finance experts, “There’s no amount of points that is worth taking on interest payments for your credit cards. Most of these points earning credit cards have pretty high interest rates.”

2) Don’t overspend just to earn points. According to Chris, “earning credit card points isn’t free,” but assuming you’re already spending money and you aren’t spending more than you would to get points you are getting a return over spending with a debit card or cash.

3) Don’t close older credit cards. Two factors that impact your credit score are the amount you’re spending relative to the total amount of credit available and the average age of your accounts.

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How To Manage Credit Card Points And Debt
I think credit card rewards the magic is finding the thing that you care about that you can use them to maximize so before anyone gets into the points game if you will make sure you are comfortable with paying down your credit cards and paying them off in full each month there's no amount of points that is worth taking on interest payments for your credit cards most of these points are any credit cards have pretty high interest rates and so if you can't pay the bills at the end of the month no points are worth it earning points is not free in that you have to spend money but to the extent you're already spending money and you're not increasing the amount you're spending in order to get more points and you're spending within your means and you're not you know going overboard okay you are getting three points and that you know if you just use your debit card you would not be getting anything and if you use your credit card with points you would be getting something but if you go buy a bunch of stuff you don't need just to earn more points you're actually gonna be sometime when you open up a new card you end up having more total credit and so your utilization or the amount of dollars you're spending relative to the total amount of credit you have actually ends up going down because you have a much bigger denominator in terms of more credit so more cards actually helps you in a couple camps but you know other factors like having an average history if you open up three new cards that are all you know one month old it really brings down the average age of your credit history having a few cards for a really long time and keeping those cards around because they help improve your average history is is helpful so when you open up a new card don't close your oldest card to get your new card maybe downgrade it to a card with no fee even if you're not using it

We Learn How To Invest Our Money

**We Learn How To Invest Our Money**



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“The best time to start investing is yesterday.”

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EXTERNAL CREDITS
Sallie Krawcheck

hello hello everyone today we are going to be talking about a taboo topic not vaginas not boobs not trash men we're talking about finances dollar bills many of them [Laughter] Freddie and I really love taking control of our finances a lot of our friendship actually just is talking about finances and like home buying you know all that sort of like yes and it's something that we can control we just don't necessarily know how to control yeah so today we want to take control and learn how to invest the money clip know what the money clip the money clip yeah going on the checkbook yeah we're gonna bring in Sally kochak of Ella best and she's gonna give us a down-low on how to really beat wealthy women which is what we both want we that's what we want we want lots of money we want to not have to worry about our money we want our money to work for us yeah and that's what investing does so today we want to learn and we want to get our money right let's do it let's do it I'm Sally Krawczyk and I'm the CEO and co-founder of Ella best I spent most of my career actually on Wall Street my 20s I was an investment banker which I hated my 30s I was a research analyst which I loved on my 40s I was in wealth management which is helping people investing and all of that led to me founding Ella vest which is an investing platform we focused on women run by women funded by women helping women invest today the vast majority of the investing industry is is white and male but we're seeing increasingly people at alabaster saying I'm tired of supporting the institutions and companies that haven't supported me not only is a good diversify your investments it's good to diversify the people who manage your investments alright so now I'm gonna spend some time with Freddie and Chantal and we're gonna talk about getting them to fast okay hurry yeah good how are you I'm good I'm ready to talk money okay me too always you feel like I'm more of a novice to this than Jean tell so Sally thank you for coming here and talking to us about all this stuff because it's really scary when you don't know anything and you don't know where to begin I know well we've been taught it's scary to today we women tend to prefer to talk about anything rather than money including your own death it starts in childhood and it becomes part of our identity that becomes difficult to fight our way through my relationship to money has kind of been very like fear-based so I've just always been taught like keep your money safe as much as you can keep it into fun put it away don't touch it it's just really interesting research where when you speak to the genders about money both of them tend to think of it as water and for the guys it's a river and the money's coming in the money's coming out and the levels going up and the levels going down and for women it's a pond and this is my money and I've got to take care of my money and it goes in one direction and it's down by viewing it as a scarce resource right and not feeling is having the ability to grow we tend to shortchange ourselves right if you live longer than you need to have money to live longer with and the part of the advice to you that was wrong is you need to guess you want to have your own money yes you want to have some that is safe and protected but the money you have in the bank is losing you ground every day I just want to be as confident as men are with their investing no kidding proactive action is the number one driver of our confidence in our future so today for so many women the primary emotion around money is not independence and freedom it's loneliness and isolation and I've received these messages that I'm not good at it and and I'm confused about investing and I don't know how to get from here to there all by the way and I'm incredibly busy oh I haven't even gone into my favorite the latte don't buy the latte invest the money and become a millionaire on what effing planet does that math work like no planet so before we get started okay where are you on your debt so and then I have any rate I'm glad to hear that do you know about what the interest rates are on your student loan debt too much that's not mine – my biggest loan is just for my condo I'm done with my student loans Wow all right yeah that I was really fortunate to be able to get a lot of scholarships and grants and then I have a car like a lease and so then I just have yeah those are my two main bills anything below 4% 5% let that ride pay those minimums every once in a while call the provider or asked to take the interest rate down and you don't want any debt outstanding that's above 10% that you need to pay down right away so take a look at that and start to you know chop away at those things okay you know you need to pay off your high interest rate debt first and once you do to begin to invest just a bit out of every paycheck so it sounds to me like you're doing a lot of things right the thing you're not doing right is you have too much your money in a bank deposits sitting sitting and losing your ground exactly bag now that I've learned the good habit of saving I don't know what to do with my savings I have an answer I have a pretty robust for me savings account okay are you investing in the 401 K here yes okay you're getting the match yes good I really like what I'm hearing yeah okay good well then let's let's start in on a Levesque then okay so I started making my profile so you've got two choices here okay you can invest in general to build wealth gosh I don't know what my goals are but I know I want to have more money or we can go into you know quantifying choosing and investing for specific goals all right so stocks bonds stocks I essentially own part of a company bonds I have debt in the company the company has borrowed money from me I don't own it it's an IOU stocks typically higher returns because higher risk bonds typically lower returns risk putting together those two broad asset classes can put together a more balanced portfolio for you right so you're not always bouncing up and down but you have a chance for more return okay I mean I do have at least one goal okay what's that that I want to work towards and I do when I buy a home let's do my property okay so my main investment goals our home and build wealth in general when you are younger and if your goals are further out you know I'm in my 20s I'm investing for retirement if you want to be in more more in equities you reason you want to be more in equities is because there tends to be a little more risk to them a little more upside and the returns have historically been better if you can invest in equities for a 15 year period historically your chances of a positive return have been 99% or you know you have a nearer term investment goal I want to buy a home in five years you want to be a little less risky you want to be more what's called bonds which are debts of companies if you want to buy a home in the next few years I don't want to give you too much risk because I don't want to put you at risk right and so you know one of the things L of s does is think thinks about it in that different way and does a highly personalized portfolio investment portfolio for each individual goal so then essentially I can have kind of like different sort of investment accounts I love that I love that the least amount of money you can invest to be worth it well let's just start with the least amount of money you can invest so a televised a penny it was really important to me as I was building all of us that we be as approachable as possible because to be quite honest these investment minimums that the Wall Street firms have had are sexist and racist right if it's the white guys who've got all the money that is the white guys who have access to the investing let's take a look at where we are all right so in the six years to get you to that down payment you have to start by investing 27,000 hundred dollars and make a monthly deposit of just over $2,200 is that outside of bills that I had to pay oh yeah oh yeah you know you got to make a sizeable deposit in order to get a sizable home okay so what this tells you is if you invest with us today mm-hmm eleven thousand seven hundred ninety eight dollars and ninety seven cents can't forget that but you start with around twelve thousand dollars uh-huh you have a monthly deposit of nine hundred dollars we put it in this allocation of 36% stocks 64% bonds in six years we estimate in the significant majority of markets you will have that down payment there's been a rule of thumb historically subtract your age from 100 and that's the percent of equities submix of us and international that should be in your portfolio so to me it's some combination of what age you are and what you're looking to use that money for the goal that you eventually want to get to is of your take-home pay fifty percent is for needs your rent you know what you got to pay for the car your work clothes etc etc let's not forget 30 percent should be for fun I mean like what's the point otherwise and 20 percent should be for future you see wow this is hard for me why is there any possibility that I could lose money of course there is no way to get any kind of return without taking risk look at any given day the market can go up and down but an equity portfolio over a reasonable period of time has typically gone up what we see is that for so many guys you know their salary can just be the beginning and they're talking to each other about investing you know for women it's the end you know and again since we've received the messages that were not good at math and we're not good at money and we're not good at investing and we're not good to take your risk none of which is true and then you're build wealth because that's a 20-year type of portfolio I guess we can estimate like twelve thousand a year so than just 12,000 times 20 so that comes out to 240 your estimated to have 463 Wow so by depositing basically $240,000 I could turn that into 463 and we talked about the power of compounding Albert Einstein is reported to have said that compounding is the 8th wonder of the world and what that means is if you invest a dollar and then you earn five cents on it then you know the next iteration is you're earning a return on the dollar five your any money on money you earned on money you earned on money you earn and so that dollar that you invest in your 20s there were so much more than in your 30s and that's how you get to that silent millionaire next door to make $240,000 but to end up with four hundred sixty thousand now you're making my point for me let's look at his bill wealth goal you know Chantal and I spend time on before so this is a over twenty years if you make a monthly deposit of 586 dollars you will have two hundred fifty two thousand dollars in twenty years the amount you would put in over the twenty years is about a hundred and forty thousand dollars we estimate that if you invest it instead in a portfolio with 89% stocks you'll have two hundred fifty one thousand two hundred fifty two thousand dollars instead so this is what happens if you keep it in the bank and this is an estimate for what happens if you invest it look here's what I would suggest just start investing a little bit you don't have to do all of this at once if this is giving you hives so I think this issue of women not investing is many many layered and I think we actually have to go back to childhood the messages that we give to little girls are about being careful with money and budgeting and little boys about making money and being the CEO a reason that we tend to outperform men when we invest is because we all pay the people who shouldn't be investing are the ones who in a moment of downturn freak out and take their money out start where you are and if honestly it's ten bucks or a hundred bucks go ahead and get started okay this is an opportunity this is an opportunity community is not this is an opportunity you're not sitting on my money in this bag first of all I wouldn't and second of all I could bear it actually there's insurance against fraud yeah at any point should I need to access that money it's yours I just it takes a few days right um but it doesn't you know it doesn't take months and your money it's not that women don't have money we've got money but there's an industry that has really just looked right through us I've just doesn't done a better job for men and have made so much money from it you know they could afford to ignore women and so that times over so what we've decided is that my game plan will be to put a certain percentage of my savings into l vest mm-hmm every month okay and that will be for the home and then I will get my savings down to an amount that I feel comfortable with as like an emergency fund if I lose my job I can still pay rent XYZ okay okay I actually don't feel that bad now you're supposed to feel yeah I know I feel good now actually I think it all just like dependent on the person and like what is like doable for their lifestyle very much very much so my perspective is completely shifted because I knew that it was something that I needed to do but I saw it as my money not being liquid and I saw it as not being that drastic I don't know how it took me so long to have a lightbulb moment but it happened okay my work talk about money talk with our friends about how much money we're making ask for that raise if we don't get that raise and we're able to leave the companies that aren't paying as well couple of different job offers look up are there women in those senior roles are there people of color they're people and minorities in those senior roles and if they don't take your talents elsewhere buy from women and minority run businesses I mean I think we need to break the wheel and we need to invest the other thing that's sort of cool here that we do at ala best is we enable you to not just invest in what we would call a core portfolio but also an impact portfolio that's a portfolio in which the money goes towards more women run businesses companies that are working to advance the environment as opposed to hurt the environment companies with a social good to it these perceptions we've had of ourselves around money the society has imposed on us are killing us so to smash through this and have confidence in a sense of abundance changes everything for us so Sally thank you so much for coming and teaching us so much and showing us so much so helpful thing I've learned a lot and good lot learning how to invest with Sally Krawczyk of LMS lady tested lady invested