There’s a hidden number attached to your back as you browse loans, mortgages, and other financial products. It’s called your credit score and it’s what is used by lenders to determine how much of a risk you are, as well as how much you can borrow and what interest charges will be applied.
But what exactly is your credit score, how is it formed, and how does one go about improving it?
Retiring early is everyone’s dream. Not having to work and enjoy life to its fullest is what financial independence retire early (FIRE) is all about. Even if you do not plan on retiring by the age of 30, putting aside funds early in life and planning for retirement will set you on the right path and this guide will run you through a few suggestions.
Growth and dividend stocks make up most of my portfolio, as is the case with many dividend-focused investors. Using my free dividend tracker, it’s easy to get your portfolio into good shape to weather financial storms and build your asset wealth with reliable passive income. But what about cryptocurrency? This phenomenon is still going strong to this day, which is why I set aside 2% for digital currency.
Most people do not have enough funds set aside for emergencies. If something happens to their vehicle, health, or home it’s usually the case that borrowing needs to occur for said costs to be covered. This isn’t the correct way to go about it. I’m going to go into why it’s important we have an emergency savings fund ready for tough times.
If you dream to retire early at the age of 50, or even 40, you’re going to need to cut back on spending and aggressively save. To enjoy life to its fullest without working, your retirement funds and investment portfolio will need to cover your current (or desired) level of expenditure. So how much should you aim to have invested?
Are you regularly depositing money into a savings account? You may want to consider alternative methods to accumulating wealth in a pot, like investing. Interest rates are low right now with the Bank of England base rate at just 0.1%, making it difficult to spot savings accounts with mediocre interest rates, let alone anything substantial. Investing can provide an average of 5% if done sensibly.
Debt isn’t fun. No one wants to owe money to anyone, but more people today find themselves parting with large sums of their monthly paycheck to clear debts. Looking at how much money you owe may appear daunting, especially if it won’t be cleared until a few years, but there’s an easy method to get a grip on debt.