3 Things To Know When Creating A Financial Plan
When planning for your future, we must consider what type of legacy we are leaving our children and future generations.
For the majority of people during their working years, human capital and their ability to earn money is their financial asset. For all of us, a long-term investment horizon makes all the difference, but “Millennials are better positioned to capitalize on this in order to shape their futures and to contribute to the greater good of their communities.”
How To Stretch Your Money
If you’ve just received a new position or even if you’ve been working a while, you may find that you’re living paycheck to paycheck without enough left over to meet your goals. A strategy is key in order to manage your saving and spending. “Rather than view a budget as a straitjacket on your spending, think of it as a way to set priorities.”
Track your spending. To meet your numbers, you’ll have to keep track of what you spend. “You may want to use a budgeting site, such as Mint.com or Learnvest.com.”
Will The Fed Raise Interest Rates Before The Election?
There’s one big factor this year that the Fed rarely mentions: the U.S. presidential election. Fed Chair Janet Yellen has stated that any further rate hikes will be data dependent, so what does it mean for interest rates?
The Fed has a lot of power over the economy and stock market. “How the economy fares could sway the election outcome.” If the Fed decides to raise rates too soon it could dramatically affect stock markets, which nobody wants to do before a presidential election.
The Fed has always defended its independence from politics. Although they are in close proximity geographically, the Fed argues it acts based on economic data, not polling data.
Teaching Kids About Money
It is important to teach children early the importance of establishing a savings account.
An allowance is a helpful savings tool but a child will spend an unlimited amount of money as long as it’s yours. “When their money is on the line, it’s a whole new ball game.” Start an allowance around age 6 with a weekly amount equal to half your child’s age and you can increase it as your child gets older.
The most important thing that you can say to your child is “No” and explain to your child the reason why. “Part of the fun of being a parent is buying things for your children, but say yes too often and you’ll created spoiled kids who grow up feeling entitled.”
Saudi Arabia Tries To Break Addiction To Oil
Saudi Arabia, which is the world’s top oil exporter has unveiled a plan to become one of the 15 biggest economies in the world. Prince Mohammed Bin Salman stated that “the kingdom’s huge oil wealth was now holding the country back.
“We have a state of addiction in the Saudi Arabian kingdom, by everyone, and that’s dangerous.” “Prince Mohammed Bin Salman would like to boost non oil revenues sixfold to $266 billion by 2030, sell part of national oil company Aramco on the stock market, and create a $1.9 trillion public fund to invest at home and abroad.”
Mitsubishi Motors Admits To Manipulating Fuel Economy Test Data
Mitsubishi Motor’s shares fell 15 percent after admitting to test data manipulation. It is the biggest decline in more than a decade in Tokyo Trading, “cutting its market value to 721 billion yen ($6.6 billion).”
“The company’s manipulation of tests will further intensify scrutiny of the auto industry.” Volkswagen also admitted to rigging last year, in order to meet U.S. emissions standards.
Yellen Says Rate Hikes On Track
The U.S. economy is on a solid course, so the Federal Reserve is on track for further interest rate hikes, Federal Reserve Chair Janet Yellen said on Thursday.
“She said that, seven years after the brutal financial crisis, the U.S. labor market was now close to full strength, again arguing that inflation would not be held down much longer by the strong dollar and low oil prices.”