Many people struggle with personal finance. Because not enough schools teach personal finance, most of us learn by trial and error.   Understanding the most common personal finance issues and how to fix them can help improve your financial standing. Taking action now impacts your financial position in later years.   The following are common personal finance issues and how to resolve them.   Lack of a Spending Plan A spending plan  is a guide for where you want your money to g

A Roth IRA conversion transfers funds from a pretax retirement account, such as a traditional IRA or a 401(k), to a Roth Individual Retirement Account. The process requires paying taxes on the funds the year they’re transferred, but future growth and withdrawals are tax-free.   What Are the Pros and Cons of a Roth IRA Conversion? The following pros and cons of a Roth IRA conversion impact whether a conversion might be right for you:   Pros of a Roth IRA Conversion Investment

Dollar-cost averaging involves regularly investing a fixed dollar amount, regardless of the share price. For instance, you might invest $100 on the 1 st  and 15 th of every month.   Maintaining consistency is key to developing disciplined investing habits. Increasing investment efficiency can lower your average cost per share.   For instance, if you invest $200 every month, you will purchase fewer shares when the market is up and more shares when the market is down. Over tim

An emergency fund is essential for building wealth. This account has money set aside to cover large, unexpected expenses such as: Major car or home repairs Home appliance repair or replacement Surprise medical expenses Job loss   What Is the Purpose of an Emergency Fund? An emergency fund helps you pay surprise expenses without using credit cards or loans. Having money set aside for unexpected events helps you avoid borrowing to cover the additional bills and increasing your

When you leave your job, you have four options for rolling over your 401(k) account. The option you choose should depend on your financial situation and retirement goals.   Understanding your options and potential results impacts the tax advantages you receive. The following information can help.   These are your four options for rolling over your 401(k) account.   1. Cash Out Your 401(k) Account Cashing out your 401(k) account is NOT recommended. The distributions typically

Many individuals purchase variable annuities as part of their investment strategies. Reading the prospectus and talking with a licensed financial professional is important. Understanding what a variable annuity is, how it works, and the relevant charges helps determine whether a contract is right for you.   What Is a Variable Annuity? A variable annuity  is a contract between you and an insurance company. You make a single payment or a series of payments, and the insurer make

Financial literacy is essential for lifelong success. Understanding how money works increases the likelihood of achieving your financial goals.   Now is the time to begin establishing good money habits. Educating yourself in the following areas helps you make effective financial decisions and attain your objectives: Banking Budgeting Saving Using credit Creating good debt Investing       What Is Financial Literacy? Financial literacy is the ability to understand and apply div

Do you know the difference between a savings account and an emergency fund? Although they are similar, they serve different purposes: A savings account  is for reaching goals, such as purchasing a car, taking a vacation, or putting a down payment on a home. An emergency fund  is for covering unexpected expenses, such as a car or home repair.   Whereas a savings account is for planned spending, an emergency fund is for surprise expenses. Having both accounts helps you stay on

A variable annuity is a type of insurance contract that combines investment with retirement income protection. Because the contract is invested in subaccounts tied to underlying investments, such as stocks, bonds, and mutual funds, it can offer higher returns than fixed annuities.   A variable annuity might be a good option if you want to stay ahead of inflation and increase the value of your retirement savings. The following information can help determine whether one might b

An emergency fund protects you when you face unexpected expenses. Conversely, a savings account helps you attain your financial goals.   Understanding the differences between an emergency fund and a savings account demonstrates the importance of funding both. Because each serves a different purpose, having both can help you stay financially secure while reaching your goals.   Emergency Fund vs. Savings Account Emergency Fund : An emergency fund is your financial safety net.

If most of your paycheck is gone within days of being deposited into your account, you’re not alone. Many people at all income levels are living paycheck to paycheck. Even with a steady full-time job, increasing expenses and debt can make getting ahead difficult.   Fortunately, making small changes can help create financial security. Adjusting your spending habits, building an emergency fund, and managing debt can stop you from living paycheck to paycheck. These steps can hel

A variable annuity is a retirement account. The account owner can use the funds to provide a regular monthly income, subject to the fluctuations in the value of the investments chosen for the account.   The value of a variable annuity depends on the owner’s tax situation, investment and retirement objectives, and time horizon. Talking with a licensed financial professional can help determine whether a contract is right for you.   What Is a Variable Annuity? A variable annuity

The 70-20-10 rule is a framework for directing your income to spending, saving, and debt repayment. These guidelines suggest earmarking 70% of your after-tax income for essential and nonessential expenses, including debt payments, 20% for savings and investments, and 10% for additional debt payments or donations.   How to Apply the 70-20-10 Rule The framework for the 70-20-10 rule is broken down as follows:   Allocating 70% for Expenses The 70-20-10 rule places your cost of l

An annuity is a contract purchased through an insurance company that guarantees income for a specific number of months or years. You receive a monthly income in an amount set when you fund the contract: An annuity can be purchased through a lump-sum payment or a series of payments to the issuer. The money grows tax-deferred through interest payments or investments in a market index or stock portfolio. You receive immediate or deferred payments, depending on the timeline selec

I’ve heard many people say they metaphorically throw a dart at a board when deciding which investments to choose for their 401(k) account. Because most people weren’t taught how to select investments that align with their retirement goals, the options they end up with might not be right for them.   Knowing your retirement goals and personal preferences helps you build an investment strategy. Understanding your investment options, selecting your 401(k) investments, and staying

A will is a legal document that states how your property and responsibilities should be handled after your death. The document can cover financial assets, real estate, personal items, and guardianship for dependents.   Virtually everyone can benefit from having a will. Without one, state laws and probate courts decide who receives an individual’s property and responsibilities after their death. Because these decisions might conflict with the individual’s wishes, it’s best to

Many people are paying more attention to their personal finances at the start of 2026. They want to increase their savings, pay off their debt, and improve their financial picture.   Understanding which personal finance activities to focus on helps narrow down what you spend your time and energy doing. Starting with one area and working your way to other areas can make a substantial difference in your net worth. The following guidelines can help.   Setting Financial Goals Dev

One of my goals for 2026 is to increase my net worth. Setting strong objectives and breaking them down into actionable steps helps attain them.   If your goals for 2026 include paying down debt, increasing your savings, and enhancing your financial position, take action today. Establishing small money habits now can have a significant impact over time. The following tips can help.   Develop Your Spending Plan A spending plan allows you to track where your money should go thr

Starting a new year is the perfect time to evaluate your financial habits. Making changes to your spending and saving plan helps you reach your financial goals.   Everyone has room for financial improvement. Regularly making small changes to your financial habits can make a significant difference.   Implementing these tips can help you enjoy the new year without financial strain.   Save Before You Spend Have part of each paycheck automatically sent to your savings accounts ,

Before training to become a financial coach, I knew little about how money worked. Now, I have a more comprehensive understanding of how to earn, save, invest, and spend my income. I make educated financial decisions, resulting in additional savings and retirement investments.   Understanding the basics of personal finance provides many benefits. Managing your spending plan, saving for emergencies, and investing for retirement lead to long-term financial stability, security,