The Four Types Of Expenses (from Budgets are Sexy)

by Alex

According to Nik Halik, there are 4 types of expenses, all of which are good, except one. The four types of expenses are as follows;

Lifestyle Expenses

Lifestyle expenses are expenses such as; eating out, vacations, concerts, entertainment, and road trips. These are practically memory building costs that involve other people. They are all good, but only in moderation.

Protective Expenses

These costs are associated with protection of important things in life, such as; health, house, cars, and businesses. This also includes all insurances; car, life, house, and disability. Also, this includes an emergency fund to protect you from falling into debt. This type is also good, but much easier to manage if you are wealthy.

Productive Expenses

These costs are those that improve your life, especially long term improvements. This includes education, career, investments, and/or anything that you need to spend money on to earn money.

Destructive Expenses

These are the worst type of costs. This includes bad habits, credit card debts, and anything else that makes you spend money for nothing in return.

All information attained from; http://www.budgetsaresexy.com/4-types-of-expenses-not-all-bad/

Interviewing an old Person

by Alex

Interviewing an old person about retirement is, in my opinion, a bad idea. But, for those that actually going to interview that old person, here are some questions to ask them.

1.      When did you start saving for retirement? An answer you might receive is maybe around the age of 18-30. Typically around that age does it set in that retirement is approaching.

2.       Did the retirement savings help you post-retirement? The answer for this question might be a little more complicated. For example, you need to take pension into account, and all expenses that need to be paid.

3.       Did you have any plans for post-retirement? The answer for this might be a bit long… like a whole bucket list and reasons for the items. An answer might include going on a long vacation, skydiving, or any other crazy stunt. Or, you might get a no for an answer. Maybe this person just wants to live out life after they retire.

And so, if you actually want to interview an old person about retirement, those are some questions to ask.

A Penny Saved is a Penny Earned

by Alex

A penny saved is a penny earned means practically exactly what it says.  Every penny you put away, is a penny you have saved, and you can pile onto that penny with more pennies. The more pennies you have the more pennies you can save, and the more pennies you save, the more pennies you will have. A simpler way of putting this is every small amount builds onto savings. This being said, it is as important to put away the money you already have, than to earn more. In the words of a wise lad “a penny spar’d is twice got”. This saying means the same thing, if you save a penny, you are a penny up rather than a penny down. So, while you are saving, rather than your wealth declining, it is increasing. And so, the moral of this story is, save your money and you will have more money.

  

Works Cited

https://www.phrases.org.uk/meanings/a-penny-saved-is-a-penny-earned.html

http://www.dictionary.com/browse/a-penny-saved-is-a-penny-earned

https://dictionary.cambridge.org/dictionary/english/a-penny-saved-is-a-penny-earned

https://idioms.thefreedictionary.com/penny+saved+is+a+penny+earned

Vanguard Funds

by Alex

Vanguard is a company that is structured as a mutual company. It is owned by funds that are managed by the company, so therefore is owned by the customers. Vanguard offers 2 different kinds of classes of most of its funds; investor, and admiral shares. Admiral shares have lower expense ratios, but have a much higher minimum investment, from 10-100 thousand dollars. The Vanguard Group was founded by John C. Bogle in Malvern, Pennsylvania in1975. Now, the AUM is upwards of $5 trillion.  The current CEO is Tim Buckley, and the current Chairman is F. William McNabb III. If you are looking to invest in a vanguard fund, the best one would be VI TAX, with an overall rating of A+ and a risk grade of C+… so it must be a good investment. Furthermore, it is recommended that you invest in the VTI, which has the lowest fee on a fund. To sum it all up, the Vanguard Group is a multitrillion dollar company, and is a very good company to invest towards.

All information acquired from;

 https://www.thestreet.com/topic/1258/best-vanguard-funds.html

https://en.wikipedia.org/wiki/The_Vanguard_Group

Credit Score and Credit Rating

by Alex

Credit score and credit rating are one of the most important things now when it comes to having, and getting a loan. Credit score and credit rating tell banks and dealerships how likely it is that you will pay them back. According to CreditKarma.com, credit score in Canada ranges from 300-900. 900 being the best, and 300 being the worst. Also, a good credit score ranges from 650-719. These are the numbers and the explanations attached to them. If your credit score is between 300-599 means your credit score needs some improvement. From 600-649 is considered fair credit. From 650-719 is considered good. From 720-799 is considered very good, and you will have more credit choices to choose from. And finally, 800-900 is considered excellent. If you have an excellent credit, you are very likely to be accepted and have a lot of choice when it comes to credit and interest rates. But if you are stuck in bad credit, you can improve it in many ways. For example, in the words of Heather Battison, VP of TransUnion Canada, consistency is key: “The most important factor for building and maintaining your scores is to pay your bills on time and in full each month. This activity demonstrates your ability to responsibly manage credit and can positively impact your credit scores.”

This is where I got my information; https://www.creditkarma.ca/credit/i/what-is-a-good-credit-score/