Do you have kids? Do you have plans for your kids to go to college one day? Have you looked at how much college is going to cost you for just one kid? College is a big investment, but it is a good one. If you begin planning for this huge expense when your kids are young, you won't take much of a hit when the day comes that your teen packs his or her bags and heads off to start a new life at school. This blog will provide you with several ideas and tips that can help you find ways to plan for your kids' college tuition.
Whether you are a trust fund baby and set out in life with a lot of money or you work to build your own wealth with time, it is still not uncommon to run into financial problems at some point and be faced with some really tough decisions. There are always things that can take place that greatly affect how much money you have and how you will get by, from a change in employment to a divorce and everything in between. However, if you are in the middle of a money crisis, there are mistakes you must avoid because these mistakes could drastically affect your long-term financial health.
You sell off your real estate property.
Real estate property, whether it is a home you own or a piece of land, is considered a tangible asset. This property is something that you can borrow against if you have to, and can even yield you a nice return on your investment if you play your card right. If you run into a financial bind, selling off your owned real estate can greatly impact your financial health moving forward.
You borrow huge sums of money.
Most people do have the option to borrow money if they get into a bind somewhere in their working adult life, and this is always a nice option to have. Yet, borrowing far more money than is necessary to get you by during a money shortage can land you in a hot mess. With large loans, you're facing larger payments and larger amounts of interest to pay back, so while the money can help you in the moment, you can really find yourself in a bad situation moving forward if you can't pay back what you've borrowed.
You cash out your retirement fund.
Your retirement fund, even if it is only just beginning to accumulate a hefty sum of money, is something you should consider off limits in a money crisis. Yes, many retirement account servicers will allow you to make early withdrawals if you are having a financial hardship, but withdrawing from your retirement early will still mean stiff penalties and you taking a loss on the money in the fund. That's not to mention that pulling out retirement funds will mean you have to put the money back later and it may cost you more to do so than what it initially costed you to get to the same point to start with.
Work with a money management service for more help.Share
18 December 2017