We are continuing the 14-day plan to improve your finances from Business Insider (with some editorializing by yours truly)!
Again, please note this was originally published January 4, 2016 at 12 pm.
Day 9: Your investment accounts.
First, please take a look at this image:
It is from https://am.jpmorgan.com/us/en/asset-management/adv/ (JP Morgan Asset Management).
As you can see, due to the magic of compounding, the earlier you invest, the more money you will end up with in the long run - even if you invest less in the beginning.
So what is the moral of the story?
Invest early, invest consistently. Do not stop investing. But, if you must stop investing - do it later.
Personally, I recommend you invest in SWPPX. I know some people like SPY. Other people tout Vanguard funds. That's all okay.
Any index fund will pretty much be good for you (I think). I am not an investment professional, and I do not claim any responsibility if you invest in SWPPX and lose all your money.
One note about investing - let's say you put your money in SWPPX (pretend it's $5k) and it goes to $1. In a flash you now have $1. That loss isn't actually locked in until you sell those funds. So, if you don't sell them, and the S and P 500 goes back up, higher than before (which has happened in the past), you will now have "made money". Again, the profit will not be locked in until you actually sell.
Day 10: Find out your credit score and credit report.
To find out your credit score, you can use Credit Karma. That is what I use. Please note I ignore all those credit card offers, but it's a good way to check in and see what your number is roughly around.
Also - if you haven't gotten your credit report in over a year, you should get your credit report!
You are entitled to one report from each of the three credit bureaus once a year. Some people like to spread them out throughout the year and some people like to get them all at once so they can see if any one bureau has errors that the other two don't.
AnnualCreditReport.com is the ONLY place to get a free credit report.
Please - if any other website says your "credit report" is free, it's probably a scam. So be careful!
Day 11: Look at your bank(s) and subscriptions.
Remember Day 6 when you looked at bills? Do you have any subscriptions you have been paying for that you forgot about? Maybe you don't really need that snack box subscription anymore? Or that makeup box subscription?
You don't have to cut everything. I like to think of it like Marie Kondo does - does this subscription bring you joy? If so, maybe you should keep it (but only if you can afford it).
Next, look at your bank. Is your bank charging you fees every month? Are those fees worth it?
Personally I like TD Bank. I think they have great hours and great customer service.
Why not look around for a bank that you can be satisfied with too?
Also - set up a system to avoid fees. Make sure your checking account has no minimum balance, or if it does, set up an alert to make sure you don't go under that balance.
You can also have multiple bank accounts. Make sure to look over your statements and that have multiple bank accounts is only helping you, not hurting you.
Were you charged a fee and you feel like a fool? Why not try calling the bank and asking if they will waive the fee this time (and then next time, make sure you don't run up that fee again!)?
Okay, I think that's a lot for today! Further days to come in a following blog post!
Warmly,
Into the FIRE
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