Financial Living

Comment

Comment by Michelle Anderson on January 7, 2009 at 9:44pm

Hi Rochelle! First is congratulations on starting your 401K. It's a good habit to get into saving for your futures and then living within your means on the funds that remain. I have always been a huge fan of our church's 80-10-10 plan. Save 10%, tithe 10% and live on the remaining 80%. It's a nice balance and goal to achieve, and grows amazingly over time. I'm always amazed at the blessing that come from tithing and the abundant life He provides to us even in uncertain times. So if possible I would suggest you and John try to do the 80-10-10 rule. You're really kicking off your investing cycle at an incredible time as you are getting to buy at bargain basement prices and you're young! On top of that if your employer is matching 3%, you are getting a free 3% return on your money. 10 years from now you'll be amazed at what that can amass to. As for saving for a house, here comes the biggest mountain, you and John need to look at how much you've saved for a down payment, and check your credit scores to see where you stand. The more money you can save towards that down payment, and then buying a home that is within your appropriate income levels is key. Most homeowners would tell you that they didn't think of the cost of maintenance when they were choosing their home. If you buy outside of your comfort level, it's hard to afford the unexpected expenses that come with owning a home. I think saving for those things and truly knowing where you and John stand in that equation in order to set your savings goal is your first step to buying a home! Glad to talk with you anytime!

Comment by Rochelle Cole on January 1, 2009 at 10:34am

Hi Michelle,
John and I are both 26 and have just started a 401K in 2008 - what % of our income should we be putting towards this at this time in our live? (No morgage or kids yet) My company matches up to 3%. (I have only been in the state a year and a half so all of this is very new to me, so trying to get my head around it).
Also, would love to chat to you some time soon about buying a house - something we hope to do by the end of the year. Would love any advice you can give!
Thank you!!! Happy New Year!

Comment by Michelle Anderson on December 30, 2008 at 10:05pm

Hey David, I know we talked on the phone about Sara and her CPA and MBA differences. Thought I'd post it for others to ponder and maybe reply. I thought it best to finish the MBA program as it simply creates more oppotunity for future employment and higher wages. MBA's are a wonderful credential to have although not currently needed to sit for the CPA exam. Specifically since Sara has tailored her college courses to finish a 5 year program with both a Bachelor's and a MBA, I would keep plugging through and finish with both. I did it the opposite way and I get to enjoy a 2.5 year MBA program after finishing a 4 year accounting Bachelor's. I wish I could go back and get the same program Sara's in to be honest! While it seems arduous right now, it will be well worth it just one year from now!!! Hang in there!

Comment by Michelle Anderson on December 30, 2008 at 9:08pm

QUICK YEAR END TAX TIP! Thought I'd just throw a quick tip for tomorrow for all the homeowners out there. If you have the cash flow and can pay your mortgage for the month of January tomorrow (12/31/08) please do so! You get to take the interest deduction against your 2008 taxes. Every little penny helps when it comes to saving taxes! Happy New Year All!

Comment by David Eugene Gabrell on December 22, 2008 at 3:14pm

Accounting question for Michelle -
Sara just found out she can take the CPA without completing her full MBA.
The test only requires a certain amount of hours, not the degree itself.
Is there a large difference between a CPA with an MBA and one without?

Comment by Michelle Anderson on December 5, 2008 at 10:28pm

Hey Diana! If I had $300,000 in cash the first thing I would know is how long I have before I need to utilize the money, and how much I would need to live on per year from that $300,000. The goal of any long term type investment is to have it provide Interest Income so that you never really need to touch the prinicipal balance and can live off of the interest for the remainder of your years.. For example, on the $300,000, a 10% return would yield $30,000. Is that enough for this person to live off to pay bills and maintain shelter, food, etc? Once I know how many years before needing utilziation and then how much is needed to live off of, I can give some better ideas of what I may or may not do...........back to you I guess :)

Comment by dona crumbley on November 11, 2008 at 10:56am

great stuff michelle! jim and i are learning lots from you guys! thanks for sharing your expertise!

Comment by Michelle Anderson on October 30, 2008 at 10:05pm

I wanted to publicize the tips from last Sunday for budgeting: I set up a budget a long time ago in Excel so that's really what we use for our household. Each year I start a new worksheet so we can see our progress or years where we may have spent more/saved less etc. etc. The other site I use for quick analysis and budget tools is moneycenter.yodlee.com. For a FREE site this one rocks! There are tons of other ones out there but that's a personal favorite. I've never used Money or Quicken, but likely that's because they haven't been free. It's really personal choice and what works best for your individual needs.

Comment by Elly Westbrook on October 25, 2008 at 8:26am

We're excited about sunday. Thank you so much for offering your expertise to us.

Comment by Josh Wellman on October 22, 2008 at 9:34am

Sweet! Your Financial Living tip with received incredibly well Sunday morning, Look forward to picking your brain!

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