Erik Folgate Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.
The reason that I am so passionate about being financially wise about money is not so that I can hold onto all of it until the day that I die. Someone who does that is foolish. A wise, sensible person will do three things with money according to Dave Ramsey, “Save it, Have Fun with it, and Give it”.
We have no problems at ALL having fun with money, we have a decent problem with saving money, but we have a HUGE problem with giving money. And this is not because people are greedy. In fact, most people are not greedy. The problem is that they do not set themselves up to be in a position to give.
There are quite a few critcs of this book, but I think that you need to understand the overall message of this book, regardless of the validity of the research done. Read my review of this book that was posted on my personal website.
Going to college is a big step in a young person’s life. For the first time, that young person goes off on his or her own to conquer life without mom and dad standing over his or her shoulder. The problem is that too many college bound seniors in high school are ill prepared to manage their money while in college. Some college students are still fully supported by their parent while going through college which delays the realities of managing money even further.
It is never too early to be thinking about retirement. Obviously, if you start early, then the earlier you can retire and the more money you will have working for you. There are a number of ways to save for retirement, but the two most advantageous from a tax stand point are the company sponsored 401k and the government sponsored Roth IRA. So which is better? It depends…
Lie: Credit cards are a good financial tool and they will help you to build prosperity.
Truth: In the end, credit cards only make the banks rich, and they make you poor.
The credit card epidemic probably started in the 1980′s and it is has run so rampant that dogs and dead people receive credit card applications every day. Over 4 billion credit cards were issued last year according to Nellie Mae fiinancial services. The problem is that millions of those credit card recipients cannot afford to be using them — including college undergraduates and recent college graduates. Here are some alarming statistics taken from a 2002 statistical pool.
The foundation of developing good financial habits as a college graduate or recent graduate is creating solid budgeting skills. Budgeting is not an art, it is a skill that is taught by practicing over and over again. You do not need a degree in finance to create and maintain a budget. Follow these simple steps to create a solid budget.
Step 1: Gather Information.
Gather together all of your bank statements, receipts, and credit card statements for a given month. Create a number of categories for living expenses such as food, gas, rent/mortgage, utilities, clothing, loan payments, etc. Based on the information you gathered, make an educated estimate for the amount that you spend in each category. Also, figure out your take home income (total monthly income minus taxes).
It’s that time of year again! Everybody get excited, because it’s tax time! Okay, there’s really no way to excite you about it, unless you know that you’re getting a tax return. But even then, all you did was give the government an interest free loan for the year.
There is a great article in Kiplinger’s magazine for guiding young people that are new to taxes. Read it and pay attention to the deductions and credits that you may be elible for.
Everyone talks about the real estate bubble like it is a real, living human being. They talk about it like this “bubble” has a mind of its own. When I look at the statistics, it looks like things are not going to “pop”, they are just going to settle down. Here are some statistics to substantiate that things are definitely settling down.
This comes from the National Association of Realtors:
Financial periodicals and magazines love to run articles that try to diagnose a family’s financial problems. They will start off by listing the assets and liabilities of the family, and then they turn to a certified financial planner (that sounds so official when you read it) to remedy the situation. The problem is that they never target the main problem which is that the family has $15,000 in credit debt and a $30,000 home equity loan. Their poor portfolio mix is always more important than the fact that they have $50,000 in consumer debt. This is absurd!
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