Most Difficult Step in Financial Planning: Facing Your Money Truth
Facing the reality of your finances is what trips most people up in financial planning. It’s not just about numbers on a spreadsheet but getting honest about spending habits, debts, and dreams. This article digs into why this first step feels so tough and how people can move past it. We’ll look at what makes this phase tricky and give practical tips to finally face your money head-on. By the end, you’ll know exactly what to do to get out of your financial fog and into action.
Rule of 100 in Finance: Simplifying Your Investment Strategy
The Rule of 100 is a handy guideline in finance to help investors decide how much of their portfolio should be in stocks versus safer investments like bonds. It's a simple formula: subtract your age from 100, and the result is the percentage of your investments that should be in stocks. This rule helps to balance risk and growth potential as you age. It's not a one-size-fits-all, but it provides a starting point for personalized financial planning.
