Good ideas Joe…
I pretty much lived with the same plan.
Never in debt to any banks etc.
I do use credit cards so I don’t carry cash around
and get 1% back or more
with no fees or interest charges
by always paying off monthly.
I either paid cash for my living abode it built a new one myself using cash. That’s the best because you make a bunch tax free when you sell. Usually double what you put in it
but you must do almost all labor yourself and buy the land wisely.
I didn’t need college to learn thrifty ways,
we were raised that way.
All vehicles were cash including a new diesel pu and a gas pickup I still own both,
2000 Dodge extended cab.
I left CA in 1970 and never moved back.
and since 1980, Missouri area.
All clean air, no smog, green, etc.
If you’re self employed as I was for years you will pay for health insurance. College was cash with no loans.
Work in summer, etc and use savings.
Do not retire before age 70.
Until you are retired:
Never pay rent.
Never pay mortgage payments.
Never pay car payments.
Never pay health insurance.
Never pay interest,
no credit cards.
Never pay any big bills.
Walk or buy a cheap used car for cash.
Buy a cheap house for cash.
pay less than $30 per month on
May add up to $200 or so.
Get a job that includes health insurance benefits.
Put savings in bank CDs,
Gradually improve housing and car if you need it.
Focus on work skills, education, become valuable.
Go to college until you know the need for thrift and the danger of debt, interest, mortgages, ripoffs,…
Always live in clean air, no smog,
Clean water, no pollution.
Mild weather so you can get outdoors and not waste money on heating and cooling and car trouble. Stable local economy with good jobs, food, water, education, medical,… Falling population, or low growth population,
Avoid areas with casinos, time-shares, illegals, immigrants, drugs, gangs, fossil fuels, big-ag monocultures, CAFO shit factories….
The CARES Act added
an extra $600 in weekly unemployment benefits to
all recipients’ checks
during the COVID-19 pandemic
to help them get by
until they could return to work.
This means some people are actually
earning more while they’re claiming unemployment
than they could working their normal jobs.
Everyone is rethinking how they manage their money these days, and if you have a little more money than you’re used to right now, you’ll have to decide how to best use those funds.
Here are a few suggestions worth considering.
1. Prepare for higher taxes this year
If you’re earning more this year than you’re used to making, you will likely also have a higher tax bill.
You may receive a smaller tax refund than you’re used to,
or you could even owe money to the government.
Planning for taxes now can help you hold onto more of your money and reduce how much goes back to the government.
2. Build an emergency fund
An emergency fund helps keep you out of debt when unexpected expenses, such as a hospital bill,
an insurance claim,
or a broken appliance
It should be your first financial goal after paying off your bills each month, especially now with the near future looking so uncertain
and a second wave of COVID-19
You should aim to save at least
three months of living expenses in your emergency fund,
or six months if you’re able to.
You can choose to only include the essentials,
like your rent or mortgage payment,
and grocery costs,
but know if you’re forced to rely on these savings,
you may have to give up extras,
like streaming services.
make sure your emergency fund contains at least enough to cover deductible unless you’re saving for this separately in a health savings account (HSA).
3. Pay down debt
Putting any extra money you have left over every month toward debt repayment can make managing your finances a little easier going forward.
Make a list of all of your debts and note their balances, minimum payments, and interest rates.
You must make the minimum payment on all of your debts in order to avoid late fees,
Put any spare cash toward the debt with the highest interest rate if you want to get rid of your debt more quickly.
When that’s paid off, move onto the debt with the next-highest interest rate, and so on.
If you have credit card debt, you can also try taking out a 0% introductory APR card to temporarily halt your balance growth.
Avoid charging new purchases to your cards, if you can help it, until you are able to pay off your debt.
4. Put the money toward some of your long-term goals
If you have an emergency fund and no debt, put your extra money toward some of your long-term goals.
You might be saving up to buy a new car or to make a down payment on your home, and you probably hope to retire someday,
so you’ll need money for that, too.
Putting money away for retirement could help you save on your taxes this year, too, if you use a tax-deferred retirement account,
such as a traditional IRA or a 401(k).