Greatvest Tools

What's your net worth? It's fairly easy to find out the net worth of some of the world's wealthiest celebrities (whether that information is accurate is another matter altogether), but how much do you know about your own net worth? And why would you even need to know that? Calculating Your Net Worth The actual calculation behind your net worth is pretty simple. The hard part is tracking down all the numbers that go into the equation. Basically, your net worth is all of your assets minus all of your liabilities. It's the combined value of all your stuff with all the money you owe others subtracted out. And yes, it can be a negative number (which isn't the worth thing in the world, and not necessarily a reason to panic). What Are Your Assets? If it's worth money, it's an asset. If it will be worth money someday, it's an asset. Some common example: Cash - physical currency, digital currency, checking accounts, savings accounts, certificates of deposits, etc...

 If you're someone who struggles with financial anxiety and stress, practicing a financial self-care routine could help. Just like other areas of your life, the more consistent you are about financial self-care, the better. This is why I am emphasizing the idea of building habits. The reality is that anxiety and stress are life's constants. We ourselves don't have the luxury of removing those factors from our environment, but what we do have are tools to help manage and reduce them. Before I get into it, I want to note that there's a pretty extensive list of financial-self care options available, but what I've realized is that when we are struggling, we often overcommit ourselves to perfectionism instead of trying to be a little less imperfect. I'm the first to admit that it's really tough not to go all-in when reading advice that sounds life-changing. Often, we find ourselves trying out anything and everything to feel in control, and  it is for this reason ...

When you're driving on the highway and a car cuts in front of you, there's a good chance you're going to assume that the other driver is being some combination of rude, aggressive, or inattentive. And that may be partially true, but it's a judgment we make after only seeing a relatively narrow slice of the event.  In truth, you don't know why the car suddenly jumped in front of you at unexpected moment. Moreover, you probably don't know anything at all about the driver or their situation. In your mind, however, you're probably quick to assume your dealing with - at best - a bad driver.  Now let's say that the other driver swerved into your lane because something happened in their lane that forced them to jump out of the lane or risk an accident. Or perhaps they'd been desperately trying to change lanes for a while because they needed to reach an ongoing exit. Or maybe someone in the car is having a medical emergency and they're in a hurry. There ...

Recently, Dr. Aaron Carroll wrote a wonderful article on COVID-19 and personal risk for the New York Times. The article dove deep into how we, as humans, assess risk in our daily lives and how that normal assessment of risk doesn't actually match up well to the realities of the life challenges we face.  Here's a key quote from the article: "Too many view protective measures as all or nothing: Either we do everything, or we might as well do none. That's wrong. Instead, we need to see that all our behavior adds up." - Dr. Aaron Carroll Carroll's central point is that risk in most areas of life is additive -- Dr. Aaron Carroll Carroll's central point is that risk in most areas of life is additive - not all or nothing -- and it's something we often get wrong in our lives, particularly in finances.  The same things pops up with retirement investments. "Should I invest in stocks?" might seem like a simple yes or no question, but it's not. You c...

While inheriting money, property, and other assets can bring about positive changes for your household, handling an inheritance can be difficult as you'll almost certainly be dealing with a loss at the same time. One important piece of advice -- take time to process the loss before making big lifestyle or financial choices. However, don't wait to understand the tax implications or hire professionals to help. Then, once you're ready, you can implement your plan for using the money. Many People Don't Pay Taxes On Inheritance As the recipient, you won't have to pay any federal income or estate taxes on an inheritance. About 55% of inheritance are less than $50,000 according to the Federal Reserve, with an additional 30% being in the $50,000 to $249,000 range. Estate taxes can be imposed on the decreased's estate, but that happens before you receive your portion of the inheritance. Even then, there's an $11.2 million exclusion for federal estate taxes, and most ...

 Whether it's buying a weekly lottery ticket or taking an annual trip to Vegas to blow off some steam, gambling is a fun and harmless diversion for many people. For others it can become a problem that creates a variety of issues, including extreme financial hardship and deep debt. Let's take a look at some of the tell-tale signs of a gambling problem.  When Gambling Goes Beyond Entertainment Win or lose, gambling should be nothing more than a fun activity. When it stops being fun and becomes something that dominates your thoughts or conversations, that's a sign it's becoming a problem.  Gambling with Money Meant for Other Things It's one thing to have a few dollars set aside every week for lottery ticket or putting a line item in your entertainment budget for a trip to the casino every few months. It's something else entirely if you're gambling with money intended for other things like rent, food, and paying bills. Gambling with money originally planned to c...

There was a time when shopping from home was the height of convenience and luxury. Eventually, the idea of just picking up your phone and buying a tub of laundry detergent was so commonplace it hardly seemed notable.  And of course, nowadays making purchases online isn't entirely about convenience. If you're looking to limit face-to-face contact and reduce your potential exposure to contagious diseases, online shopping can certainly help.  But shopping online does create an entirely different set of risks - risks to your identity and your financial security. The basics of safe online shopping have remained fairly consistent in the past decade-plus, but it's always a good idea to refresh yourself and ensure that you're following all the best practices. If you're making purchases online, make sure you're taking these steps every time.  Keep Your Device And Your Browser Up-To-Date Malware is constantly evolving. To stay ahead of the curve, software developers are c...

We've all had those scary moments when we're cruising on the highway and suddenly realizing we're driving a little too close to the road's edge or another vehicle.  Emergency lanes and buffer zones are there for a reason. They provide drivers with extra room and a little time to correct themselves before something terrible happens.  Managing money is no different. To reach your destination safe and secure, you need the financial equivalent of seat belts and airbags in place. Do you know how you'd handle an unexpected medical emergency if it came up today? How many months would you be able to keep up with your mortgage if you were to suffer a layoff from your job next week? There's no such thing as an emergency-free life. And when inevitable troubles come up, you can't afford to face them without the shock-absorbing power that can only come from consistent budgeting, wise investing and a big, healthy emergency fund.  How can you tell if you might be living to...

  Technology has had a huge impact on the financial industry; it's completely changed how we spend and manage our money, as well as how we budget. What once used to require a trip to the bank can now be achieved almost anywhere through a few clicks on your mobile. We've gone from cheque books being an everyday essential to today's almost cashless society. While these changes have made managing our finances more efficient it has also raised some new challenges we need to be mindful of.  Seemless spending - the end of cash One of the most direct impacts technology has had on our finances is how we spend and use money. Cashless society We have over time, and in line with the evolution of technology, moved into an almost cashless society. We have seen trips to the bank evolve into trips to the closest ATM, to today where most transactions can be achieved through your closest device. The need for physical cash has become somewhat irrelevant, and through the COVID-19 Pandemic, ca...

 Life as we knew it came to a screeching halt because of the coronavirus pandemic. But now things are slowly starting to open back up again, and that means the quarantine and #QuarantineLife is ending for millions of Americans who have been cooped up in their homes for weeks. Some folks will be getting out of quarantine faster than others, but most states have already reopened or plan to start lifting some of those restrictions put in place to stop the spread of COVID-19 in the U.S.  What does that mean for you? Well, first of all, you're going to have to start wearing pants again. Bummer. But this is also a good time to take a fresh look at your financial situation. Here are six things you can do to get your finances back on track as you emerge from your quarantine cave: 1. Reassess your current situation. When this crisis began, you might have gone into "survival mode" and focused on taking care of your Four Walls -- that's food, utilities, shelter and transportatio...

 Saving 10% of your income every year, is recommended by Greatvest Tools, for everyone.  Why? Over and above paying for your regular living expenses and taxes, saving 10% of your income each year allows for the steady buildup of cash and other assets (home, investments, etc.) that will provide for your financial needs now and in the future.  One recent member was surprised when she received her plan and found that her first step was to top off her savings to 10% this year. We encouraged her to not get too worked up about it because she has two children in college at the time and her life was all about watching cell phone and other costs continue to hit on the monthly Amex bill. She said, "When I die, I want to come back as my kids!" The data shows that if we are careful and save 10% year year, we will significantly reduce the risk that we will not have the money we need in the future. She reported that she had already started to look at all those extra expenses -- the cab...

 College graduation marks the end of one stage in life and the beginning of a new one. The pursuit of a well-paying job and financial independence begins, and life takes on a new trajectory. One common hindrance fresh graduates encounter is the lack of proper financial management skills. This guide seeks to introduce you to common money mistakes you are likely to make and how to avoid them. 1. Rushing to own a home The moment you start getting a steady flow of income, the urge to buy a home becomes virtually irresistible. There is nothing wrong with early homeownership, but it is not a wise decision to rush into. It is costly, engrossing, and time-consuming. You want to be sure you have the time and the money to spend before committing.  2. Not creating a budget It doesn't matter how much money you make the lack of a budget can take a serious toll on your financial progress. You are more likely to indulge in impulse buying and conspicuous consumption, only to find yourself wit...

Credit cards are a few things. They're a means to an end in a tough time, they're a necessary tool for getting a job done (think renting cars or hotels rooms), and they can even help us travel more for way less when we use points and miles.  However, chances are those cards in your wallet carry perks you're not using to their full advantage. It can pay to read the fine print so that you can make sure that not only are you getting what you pay for, but you're not paying for things that you already get for free.  Fraud and Theft Protection Unfortunately, many of us have dealt with unscrupulous companies, faulty merchandise, package theft, or bait and switch operations at some point or another. If you pay for a product or service with a debit card or cash, it is unlikely that you'll get your money back if things go south. When you pay with a credit card, you have the ability to contact the card issuer and report unlawful or unjust behavior and get refunded. Almost all ...

 Credit cards, when used responsibly, can be a helpful tool that can help you come up with funds for unexpected needs such as a car repair, large appliance purchase or even to pay an unexpected medical bill, when savings are thin. But what are the signs of too much credit card debt, and what can you do once a problem is recognized? How much credit card debt is too much? It could be argued that carrying any credit card balances into the next billing cycle would be too much. After all, you go into a purchase deficit once interest fees are accounted for. However, that's not practical, and credit cards can serve a good purpose when used properly.  Instead of focusing on a set dollar amount, since we all have different financial scenarios and debt tolerance, we'll focus on how credit card debt currently makes you feel.  Similar to the smiley face to frowny face, with a scale of one to ten that you would see in a doctor's office, credit card debt can be viewed the same way. The...

 The COVID-19 pandemic has created a rough situation for everyone. As the disease sweeps across the globe, everyone's top priority right now remains the same -- staying healthy. However, staying physically and financially healthy in the current economic climate poses a challenge for most people. Here are 5 tips about budgeting during COVID-19 Build a Budget for COVID-19 With companies closing their doors comes a spike in the unemployment rate. The unemployment rate in the US has jumped to a staggering 13.3 percent - worse than any previous recession since World War II.  Almost half of all Americans live paycheck to paycheck, and this was before the pandemic hit. The rise of COVID-19 means that people who have little in the way of savings feel an extra pinch in their finances. As financial uncertainty and record unemployment rates persist, more Americans will suffer the strain in their finances.  The federal government tried to help with an economic stimulus package design...

 For many couples, talking about money is not always the easiest discussion even in the best of times. During periods of economic uncertainty brought on by the pandemic, the conversation can be even more challenging. Here are some suggestions that can help make the discussion go more smoothly during this difficult time. Be extra sensitive to the timing of discussions. Plan the "money talk" when you both feel calm and there are no interruptions or distractions (turn off your phones and TV and wait until the kids are in bed or are occupied). Omit non-financial issues from the discussion. Take a time-out if things get overheated, and make a commitment to revisit the money talk later. Check in more often about your financial situation. When the economy is consistently up and down, a bi-monthly or even weekly discussion may make sense. Figure out a spending plan together for what works now. The word "budget" can feel like "deprivation" to some people. Instead, ...

  There is no magical shortcut on the road to financial independence. Intellectually, most of us know that the way to achieve lasting financial success is by living within your means. However, when you're struggling and in the middle of a rough financial stretch, it can seem overwhelming to the point of giving up. So in honor of National Encouragement Day, here are ways to hopefully give you some FINANCIAL encouragement, no matter where you find yourself on the road to financial security. Decide to do it (and know you can) The first step in feeling financially empowered is to decide that you will do it. Decide to make that step. No matter where you are, decide what's important to you and decide to make it happen. That might be creating a budget, starting an emergency fund, or deciding to open up your first retirement account.  When you make the decision, don't keep it yourself. Write it down and tell your trusted friends and family. Let them know that they can help keep you...

 There's no doubt 2020 has been one of most unsettling years in recent memory. For many, it's meant job loss or reduce income. And even if you've maintained full employment over the last several months, staying focused has been challenging. All this has led to people making some common pandemic money mistakes. Let's see what they are, and how to get back on track. Not Budgeting When things are unsettled, it's easy to slip into an "anything goes" mentality, and that's particularly true when it comes to finances. Even many committed budgeters have let their discipline fall away during these uncertain times. But planning and maintaining a budget is actually one of the best things you can do to regain a feeling of power and control. While the world outside might be going crazy, it's entirely within your power to keep track of how much money you have coming in, how much is going out and knowing exactly where it's going.  Not Setting Aside Savings In...

Budgeting is an essential part of a healthy financial life. It allows you to create a spending plan for your money to ensure you always have enough for the things that are truly important to you. Rather than being restrictive, these 5 budgeting tips help you form a clear picture of the money you have to spend and can help you discover extra income that you can use more efficiently. People who budget, set themselves up to get out of debt faster, achieve their savings goals over time, and practice smart spending. The best part is that it only takes a few easy tweaks to your money routine to implement good budgeting habits. Beginner Budgeting Tips There are some things that are worth doing every day. We stay physically healthy by brushing our teeth, drinking plenty of water, and being active. So why is it so hard to exercise this same kind of daily care with our financial health? Read on to learn about quick and simple things you can do every day to stick to your budget. 1: Create Your Bu...

If you do decide that you want to move forward with debt relief, you'll want to take a close look at your options within the context of your own finances. Depending on the size of your debt, your other financial obligations, and your income, one situation will probably make much more sense than the other; it just comes down to understanding the basics and weighing their associated pros and cons. With that said, let's take a closer look at some of the debt relief options you may have access to. Debt Management Plan A debt management plan (DMP) is a program wherein a debt relief company negotiates with creditors on your behalf to agree on a repayment plan to help you resolve your debt. Typically, the two parties come to an agreement to reduce monthly payments, lower interest rates, minimize or waive penalties, or apply some combination of these measures. If agreed upon, you would them make monthly deposits to your credit counseling organization who would facilitate the payments o...

 Credit cards present plenty of personal finance and lifestyle perks -- you can build up your credit, have a spending safety net, and sometimes, you can even access cardholder benefits, like flight miles, discounted shopping, and concierge services. But with all of the potentially positive aspects of becoming a cardholder, there's also room for your finances to get...complicated.  According to Debt.org, the typical American holds four credit cards, and individual households carry an average balance of $8,398 in credit card debt. For many people, this balance can be pretty challenging to pay off, especially if you find yourself in a (seemingly) never-ending cycle of revolving debt. So, how do you put a stop to the cycle? In this post, we'll go over four strategies you can employ to find credit card debt relief, we'll review their benefits and drawbacks, and help you compare your options to find the best solution for your situation. What is Debt Relief? Debt relief is a serie...

Contrary to popular belief, there isn't anything wrong with borrowing money. In fact, sometimes you have little choice but to borrow money to meet a need. Having a little bit of debt to your name may even help you out when you want to purchase a house, or perhaps wish to borrow cash for a genuine reason.  The issue isn't so much with borrowing money, it is biting off a little bit more than you can chew when you do borrow it. We want to help you out and make sure you don't dig a financial pit. Borrow from Licensed Lenders You think this would go without saying, but you will be surprised at just how many people will borrow from less-than-reputable companies. If you do this, then you are borrowing irresponsibly. You will have high interest rates, and there will be nobody that "has your back" should things go wrong. Unlicensed companies are operating outside of the law. Avoid them and avoid inescapable debt. Only Borrow as a Last Resort You should never be borrowing m...