corbinalexanderwealthguidance:
CORBIN ALEXANDER WEALLTH
GUIDANCE: POSTED 05/06/2018
STARTING OUT FROM SCRATCH – POST #1 IN MY SERIES
BUDGETING:
50/30/20/RULE:
For the person already living life, this is an essential
rule of thumb:
-
50% to Needs: utilities, rent, food, car insurance (never buy a car on credit/payments and be required to pay collision coverage: only buy a used, 3-8 year old, Honda/Kia/Toyota for the best value/bang for your buck),
gas, clothes allowance, etc. Essentials needed to live!
-
20% to Savings
Investment: used to pay bank
loans/student loans, monthly deposits into a retirement account and an investment
account, credit card payments (pay off the entire balance each month and not
just the minimum payment to avoid paying interest on interest = that’s what
eats you alive causing you to NEVER
pay off the balance(s)) and never buy stuff from Fingerhut/Rent-A-Center or the
like…..the interest on this stuff is outrageous and you pay 3x-5x what the item
is actually worth in the end – if you ever get to the end of the payments!
-
30% to Wants: vacations (limit one per year – do day trips
for the other week taken on paid vacation benefits) and future “Wants” such as
saving for a house: if you need the
monies in less than 5 years, then bank it – if you need the monies in over 8
years, then invest it; that is the industry rule of thumb when it comes to “Wants”.
Two methods to keep you on track:
-
The spread sheet method: this is where you track your budget in MS
Excel.
- The envelope method: this is where you assign envelopes labeled by
each expense.
EMERGECY FUND:
This where you have a bank savings
account holding a minimum of six months of expenses to pay “all” your monthly bills in the event of
a job lose or an illness: you are NEVER to dip into this unless you are
in a dire straight situation.
Establish this fund FIRST before all other suggestions are followed.
SAVINGS INVESTMENT:
-
Start saving for an emergency fund first.
-
Do not
use the Overdraft protection feature on your bank debit card = avoid getting
into the habit of paying Overdraft charges over and over again! But do have it on the account – in the event
of an emergency = like your car breaks down, etc. and avoid using a credit card
and carry a balance.
-
Start an investment account at Ally.com/invest
and invest in my Model ETF Portfolio that I’ll outline at a later date…stay tuned!
-
Start investing in my ”ALL PURPOSE” Model Mutual Fund Portfolio: starting in your mid-50’s/early
60’s.
-
Start investing in my designated Model Mutual
Fund 80+ Portfolio in your 80’s; exact allocation percentages to also be
revealed at a later date!
CREDIT
CARDS/BANKING MANAGEMENT:
-
Establish a credit history at 18 years old
before working a full-time 9-5 or going to college: now is the time to obtain a pre-paid debt
card through Capital One.com or a
similar lender. And do not forget to
get a small personal loan ($1,000.00 minimum) at a local bank using a co-signer to qualify for the loan.
As you SLOWLY
establish a credit history; apply for a no-fee/low credit limit card through Discover.com and/or Capital One.com.
HAVE
YOU RUN UP YOUR CREDIT CARDS TO THE MAX AND DROWNING IN DEBT OVERALL? –
CONSIDER CLAIMING BANKRUPTCY AND START OVER – JUST BE CAREFUL; DON’T SCREW UP
AGAIN LIKE THE LAST TIME.
-
Earn interest in an interest-bearing savings or
CD account:
Not all
banks are created equal; which is why most are banking wrong:
BANK
OF AMERICA: This is a “fee city”
bank. You name it, they have a fee
attached
TD
BANK: This is a bank with convoluted
morals. Good luck banking in this
environment; more horseshit then you can shake a stick
at!
- If your balance falls below $100.00 at TD at any
given time during the month; they hit you with a $15.00 low balance fee
($180.00 a year!).
You
are better off going to a local bank or a federal credit union for your banking
needs.
BE ON THE LOOKOUT
FOR MY NEXT SERIES INSTALLMENT POST ON 6/3/2018!
