Just starting to get your finances in order? Here are the basics: (1) Purpose (2) Specificity, and (3) Guidance. Plus, we cover 3 things you DON’T need as well.
If you don't have a purpose for every dollar you earn, some simple organization can change your life. This is not an empty promise — I’ve seen it happen with many, many people!
First, understand the “time horizons” of each account — that means when you’ll need the money. Basic types of accounts you’ll have are:
Second, you can automate transfers so your money is saved and invested automagically when you get paid (ask one of us Financial Guides how).
Once you’ve organized the WHAT of your accounts, the next thing is the WHY. What exciting savings goals can inspire you? Specific goals can inspire you to achieve more than you thought possible:
Here are some questions to get you started thinking about your financial goals:
That’s what Fruitful is for! It’s important to get advice from an unbiased 3rd party, especially if you’re new to intentional money management.
3 things you DON’T need
Ready to dig into the basics? Talk to a Fruitful Financial Guide.
When you are quoted an APR, dig deeper. Find out how and when the rate is applied, and whether there are other fees and charges.
You have options when deciding what to do with a 401(k) from a former employer. You can do a rollover into a new employer’s plan, convert to a Roth IRA, or cash out (but don’t cash out if you can avoid it).