October is Financial Planning Month: Top 11 Money Tips from the Nuvision Blog
According to a recent CNBC study, 58% of Americans say they are now living paycheck to paycheck, but the problem isn't only confined to lower-income brackets. In fact, with rising inflation, nearly 38% of those making over $100,000 say they are now struggling to cover monthly expenses and get out of debt. Unfortunately, even Income isn't the biggest predictor of savings or success—financial literacy is.
A recent National Financial Educators Council study found that the average American lost $ $1,389.06 in 2021 due to a lack of personal finance knowledge. If we generalize the results to represent the approximately 254 million adults who live in the U.S., a lack of financial literacy costs Americans more than $352 billion in 2021.
That's a lot of money to lose, especially considering what it could do for you if it were in a savings account or retirement fund. Having the proper financial knowledge can prevent those kinds of losses. At Nuvision, we want to help you manage your money as effectively as possible. So we're kicking off October's financial planning month with a round-up of our blog's top 12 financial success articles.
Working toward financial freedom
Financial freedom means different things to different people—but at its core, it means supporting your lifestyle without relying on others. This can happen through savings, passive income, or pursuing a career you love.
Good money management skills are the foundation for building savings and achieving financial freedom. These eight things are some of the most essential skills to master. By developing these habits, you'll be on the way to success.
Many Americans today face the difficult challenge of debt. From student loans to credit cards, it seems there are always traps that make building wealth even more difficult. However, becoming debt-free isn't impossible, especially if you are motivated and have some practical knowledge of how to tackle the problem.
The path to financial freedom means you need to be able to cover unexpected expenses without resorting to borrowing or using credit. Unfortunately, 60% of people can't even afford a $1000 emergency. You can't always prevent an emergency from happening, but you can take steps to prepare.
Few things can be as stressful as budgeting for your family. There's a lot to consider—and kids always seem to come home with extra expenses. But it doesn't have to be a hassle. Managing money will help you now and teach your kids to be responsible with finances in the future.
Forty-two percent of parents aren't sure how to start a conversation about money with their families, a 2018 T. Rowe Price survey reports. Yet, teaching financial literacy young is crucial to success later in life. By talking about monetary issues at home, parents can equip their children with the skills that will help develop healthy attitudes about money later in life.
Military families often face unique challenges. Constant relocation, deployments, and family separations make the already tricky task of money management even harder. As a result, military families are more likely than their civilian counterparts to fall into debt and have trouble getting out of it. It's important to understand the fundamentals of budgeting and how to deal with your specific situation. With the right knowledge, you can help your family get where it needs to be.
Planning for the next big purchase
Some purchases, like houses and cars, are a process. You can't just walk into a store and pick one up. Big decisions like these can have a drastic impact on your finances, so it's important to plan ahead. Doing the proper research beforehand can be a lifesaver.
Purchasing your first home can be equal parts exciting and terrifying. You're looking forward to having something to call your own, but the thought of making such a large investment can also cause stress. Trying to understand loans, realtors, and home inspections can be daunting, especially when your exhausted from looking at so many properties. Luckily, a little background knowledge can help you be more confident in your decisions and avoid common mistakes first-time buyers make.
The time before you buy your home is important. It's a time for saving, researching, and understanding what you can afford. There's a lot of factors that go into making a budget that works for you, and it's important you understand them. Doing so could help you avoid a shock later on when you can't afford the mortgage bill that comes each month.
Buying a car isn't the most enjoyable process. Searching through countless vehicles and then having to sit in the dealership for hours on end can be frustrating. That's why you'll want to come prepared. Having everything in order beforehand can help speed things up and ensure you negotiate the best deal possible.
Building a solid foundation
If you want to be financially successful, starting early and starting right can get you there. By setting yourself up from the start, you'll have something to fall back on later in life.
Everybody looks forward to their graduation day. They want to leave behind the homework assignments and taste the freedom that comes with a diploma. Graduation is a time to celebrate, but it's also a time to start looking ahead. What are you going to do moving forward? New graduates can set themselves up for success by learning the basics of personal finance.
It's common for higher education levels to correspond with income increases. On average, college graduates make $900,000 more than high school graduates over the course of their lifetime. Still, not many consider the benefit of continued learning over a lifetime after they've graduated. This doesn't mean going back to school—though it can—but rather continuing to pursue knowledge and new skills. The most successful people in the world never stop learning. Doing so allowed them to become innovators on the frontiers of their fields. Learning can take place from reading, taking online courses, or simply trying new things—and it's one of the best investments you can make.
If you're looking for a way to earn some additional income or an opportunity to have a more flexible working schedule, starting a business could be a great idea. It'll take some hard work, but with the right amount of dedication, you'll be able to do it.
Whether you're looking to take the next big step or just to keep what you have going—we can help.
We help our members in a variety of areas: from buying their first house their first house to managing daily finances. At Nuvision, we understand how crucial financial literacy is. That's why we offer so many resources to our members, primarily through our blog but also through events and investments in the community.
Stay up to date on new financial management tips and outreach projects happening at Nuvision by visiting the rest of our blog here.
The information contained within this article is for informational purposes and should not be considered financial advice. Everyone's financial situations are unique, and you should consult a financial advisor for assistance with your particular situation and goals.