Last month, I received one of the best compliments (to date) on my blog: “I love your blog. It makes money less scary, and I appreciate that.”
While this person’s comment made me feel all warm and tingly, the reality of her compliment also struck me. For the majority of us, personal finance is scary!
And it isn’t our fault. It’s 2017, and college curriculum STILL doesn’t include classes on investing, saving for retirement, taxes… the list goes on. It’s no wonder that one in three Americans has nothing saved yet for retirement, or that nearly 75% of millennials has less than $10,000 saved, according to a survey from GOBankingRates.com. It’s a big, national problem, yet it wouldn’t exist at all if colleges and/or the government would make a few simple changes (see more on how the government could help here).
Unsurprisingly, once you get to know personal finance, an interesting thing starts to happen: It becomes a lot less scary! And even liberating.
So how can we familiarize ourselves with personal finance so that it’s not as daunting? Fortunately – thanks to the internet and technology – there are a lot of free online tools and resources that can help us out.
Below are some of my personal favorites:
- Retirement calculators: If you’re wondering how much to save for retirement, this is a fantastic calculator. All you have to do is plug in your age, desired retirement age, the amount you’ve saved so far, your current income, and the percentage rate at which you’re saving. In just a few clicks, it does the math for you and tells you whether you’re “falling short” or “on the right track.” Keep in mind though that most online retirement calculators assume annual stock market returns of 6% or higher. In reality, the stock market may only return an average of 4% for the next 20+ years (more on that here).
2. Mortgage calculators: If you’re thinking about buying a home or investment property, online mortgage calculators can help you estimate how much you can afford. However, as the CFPB reports, many online mortgage calculators only calculate your principal and interest payment – leaving out important costs like property taxes, homeowner’s insurance, property mortgage insurance (if you’re putting less than 20% down), and condo/HOA fees (if applicable). As many of you know – particularly if you live in Illinois or another state saddled with debt – property taxes can sometimes amount to a double mortgage. For this reason, I really like the Trulia Mortgage App as it includes most of these other factors. Click “Advanced options” at the bottom of the app to play around with the property taxes and PMI.
3. Google Alerts: I can’t even tell you how much I’ve learned simply by setting up daily Google Alerts. I set one up for “down payment” about a year ago, and ever since, I’ve been able to easily monitor the latest news, trends, and developments about home down payments. If I hadn’t, I would never have known about companies offering to help people with their down payments in exchange for a stake in their property, or the idea to create tax-free savings accounts for down payments (like 529 plans for college). Although neither of these initiatives has impacted me, it’s great to know about these developments and keep an eye on them. If there’s something you want to learn more about – such as a company you’re investing in – I highly recommend setting up a Google Alert (or three).
4. Twitter lists: Since time is money, in addition to Google Alerts, Twitter lists are a great way to quickly and easily monitor personal finance news and tips (although it does require you to have a Twitter account). Twitter lists allow you to declutter Twitter’s massive newsfeed so that you only see Tweets from the people in your list. I have personal finance and homebuying lists consisting of organizations like Fidelity Investments (@Fidelity), LearnVest (@LearnVest), and Zillow (@Zillow).
5. Investing apps: For those who want to learn how to invest beyond their 401(k) and Roth IRA, apps like Clink allow you to invest with as little as a dollar a day. In addition, they only charge you a dollar per month to manage your account (until you hit $5,000, after which they’ll charge you 0.25% of your annual balance). This is a great way to learn the ropes without suffering any serious financial consequences. (Full disclosure though: I haven’t tried this app yet, so if you give it a shot, let me know what you think!).
What other tools and resources do you find helpful? Is there anything else that you would add to this list?
P.S. All of the recommendations above are my own. I don’t get paid to recommend any products or services, and I’ve made zero dollars from this blog 🙂
P.P.S. Cheap Wine and Coffee now has a Facebook, Twitter, Instagram, and Pinterest page. For anyone wanting more conversation than the blog allows, I post on Facebook and Twitter daily and hope you’ll join me!