Welcome to AllAbout.Money
– your website for financial literacy education.
Success with Money requires Knowledge, Action, and Behavior.
While Knowledge is the foundation of financial literacy, addressing Action (e.g. setting up automatic transfers to an emergency fund and for retirement savings) and Behavior (e.g. avoiding excessive impulse purchases) is also critical for lasting success.
Financial Literacy includes 5 areas: earning, saving & investing, spending, borrowing, and protecting.
Here are our recommended steps for you to take control of your money:
- Commit to Change – Nothing is going work without Step #1!
Something has not been working or needs improvement. For lasting success, you need to be willing to change your behavior and embrace new ideas. This is a major hurdle and many people fail because they are not really willing to change their habits with money, yet they expect results to happen without much effort. One example to commit to change is to take the ‘America Saves’ pledge on www.americasaves.org. - Assess your current financial situation – You can’t manage what you don’t measure.
Use our free template (see free resources) to calculate your net worth (your assets – your liabilities). - Establish SMART Financial Goals – What do you want to accomplish?
SMART Goals are Specific, Measurable, Achievable, Relevant, and Time-Bound
E.g. Establish an Emergency Fund for 3 to 6 months of living expenses in a separate high-yield savings account within 1 year; Make a Plan to pay off all high interest rate debt within 2 years; Save 20% of your income for retirement. - Establish a Spending Plan (a.k.a. Budget) – Identify money you can redirect towards debt reduction and investments
Use our free template (see free resources) to establish a spending plan. Know where your money is spent, identify opportunities for savings, and use excess funds to pay off debt and invest. Identify all recurring expenses (subscriptions) and evaluate their long-term effect on your finances. Comparison shop for larger expenses (e.g. car insurance). - Consider ways to increase your income – higher income => reach goals in less time
Consider second income opportunities to accomplish your SMART Goals. To go through the effort of a second job for a limited time can make a big difference in accomplishing goals. - Review your Credit Reports – Disputing false information may increase your credit score
Go to www.annualcreditreport.com and review your 3 free credit reports. Identify any mistakes and dispute false information. - Review your retirement savings – understand your Gap and what it takes to close it
- Review your eligibility for Social Security (www.ssa.gov). Make sure to contribute to your 401K and receive the matching from your employer. Understand your retirement needs. Calculate the funds you need for retirement. Develop a plan to reduce or fill the gap. What does it take to retire earlier?
- Review insurance coverage, tax planning, and more – is your family and home protected?
Make sure you have the necessary protection at a competitive price but not more. Understand basic tax laws and how you can benefit.
We are not financial advisors and do not provide investment advice. Make sure to do your own research before making investment decisions.