New Home - Good Financial Cents® (2024)

FAQs

What is good financial cents? ›

Good Financial Cents is full of actionable advice to help you manage your money and make more of it. In my opinion, Jeff Rose is one of the most authentic voices in personal finance today.

The first step of building your financial house is investing in yourself Learn about personal assets (education, skills and talents, personality, and connections) can increase your earning potential. Setting priorities and SMART financial goals are also part of the process.

It aligns with common retirement planning guidelines. Many financial experts recommend saving 10-15% of your income annually for retirement. Since many employers match 3-5% of income in retirement accounts, the seven percent rule gets you well on your way towards meeting typical retirement savings targets.

Here, 50 per cent of your income should go towards living expenses (needs), like household expenses, groceries; 20 per cent (savings) towards savings for your short, medium, long-term goals; and 30 per cent towards spending (wants), including outings, food and travel.

In a seller's market, it's reasonable to consider building your own house rather than fighting it out for an existing home. That said, if time is a factor, you may be better off buying an existing house. Another major factor to consider is the cost of building a house versus buying a house.

According to the 28/36 rule, you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts. Housing costs can include: Your monthly mortgage payment. Homeowners Insurance.

Typical signs of strong financial health include a steady flow of income, rare changes in expenses, strong returns on investments, and a cash balance that is growing.

In addition to keeping funds in a bank account, you should also keep between $100 and $300 cash in your wallet and about $1,000 in a safe at home for unexpected expenses. Everything starts with your budget. If you don't budget correctly, you don't know how much you need to keep in your bank account.

The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.

What is a good financial return? ›

A good return on investment is generally considered to be around 7% per year, based on the average historic return of the S&P 500 index, adjusted for inflation. • The average return of the U.S. stock market is around 10% per year, adjusted for inflation, dating back to the late 1920s. •