One thing is true of life…expect the unexpected. That’s why any financial guru around will stress the importance of having an emergency fund. If you’re confused on what exactly an emergency fund should be used for, I can tell you it’s not for that 65” TV you’ve been eyeing at Best Buy when yours bites the dust. While that may seem like a catastrophic event to some, it’s not exactly the type of crisis that you’ll want to dip your fingers into your cash stash for. An emergency fund, also known as a rainy day fund, is the money you save for those unforeseen circumstances you run into in life. Your budget is made up of this everyday expenses like groceries, housing, cars etc. Your emergency fund is for those things you don’t anticipate in your budget. So when life happens and it will, you need to have money somewhere that you can easily access to cover those unexpected expenses. This is NOT money you tie up in an investment. You’ve got to keep it fluid and available. You don’t want to count on credit cards or debt to get you through when your car breaks down or the air […]
Thinking of moving? Perhaps you just interviewed for a job with a new company. Or maybe your current employer set the wheels in motion telling you to relocate. Whatever your situation, before you pack your bags and head to a new city there are a few financial decisions you may want to consider before relocating for work. In a recent meeting I had with a client, they were trying to decide which town would offer them the best value of lifestyle for their income. In order to narrow down the field, they needed an actual cost of living comparison. So we took a couple of different towns into consideration before they loaded those boxes into a moving van. Here’s an example of what we did to make their decision more informed. Let’s say this client is a general dentist. So here is what we know about Dr. Smiles. He earns $160,000 a year in Knoxville, TN.Now he wants to sell his practice and migrate south to Cape Coral, FL. Using this simple calculator, Dr. Smiles now knows how this move will affect his lifestyle. The calculator lets you compare your current and possible new city with other major cities in the U.S. The first point to take note of is […]
Pay Yourself First No Matter What As a business owner, you’re often working hard to cover all the expenses of the business. Whatever those expenses are, don’t forget to pay yourself first no matter what!
Recently an interaction with another financial professional left me a little puzzled. He suggested that a ROTH is always better than a regular IRA. If there’s one truth in the financial world, it’s that always is NEVER always. Always is NEVER Always