Tips & Advice: General Life – Personal Finance (Guest Post by Miriam Hurdle)

I’m so excited to be a guest on James J. Cudney‘s blog today. I invite you to head over to read this post about Personal Finance. I love to hear your kind comment.

It’s the next installment of the General Life segment in the Tips & Advice feature on the This Is My Truth Now blog. If you’re new to this segment, scroll toward the bottom to learn more about it and me. Today’s topic continues our guest posts with Miriam Hurdle who will talk about personal finances.

Miriam and I met a couple of years ago through our blogs. After chatting about books, life, and poetry, we began following one another and became friends. I thoroughly loved her book, as you’ll see in an author spotlight I published earlier this year. Today, I’m thrilled turn the floor over to her as she tells us all about personal finance – a topic that is dear to my heart and should be to yours too… especially with the rough economy we have right now. Let’s spend a few minutes listening to her advice…

Guest Post by Miriam Hurdle – Personal Finance

 

When it comes to money, I’m not a big spender. I never was and never will be. Yet I couldn’t save big money from years of working, let’s say, several thousand dollars. I had no control over the financial situation in my former marriage. After the divorce, my night gradually turned into dawn. Regardless of the huge amount of attorney fees and other expenses from the unpleasant stage of life, I slowly but steadily recovered, marching on to set goals for personal financial freedom.

One budgeting rule is the 50/30/20 rule.

  • 50% on needs (groceries, housing/rent, bills & utilities, health insurance, car payment/transportation)
  • 30% on wants (shopping, dining out, hobbies, entertainment, travel)
  • 20% on savings (savings, emergency fund, loan payment)

The other one is the 70/20/10 rule.

  • 70% for living expenses (rent, house payment, food, clothing, gasoline)
  • 20% for savings
    • 10% for retirement (IRA, 401(k), company pension)
    • 5% for emergencies (car repairs, medical expenses, unemployment)
    • 5% for specific goals (vacation, car, school tuition, a new computer)
  • 10% for debt (student loans, car payments, credit cards)

I didn’t follow any rules from the start. Once I regained control of the finance, my focus was on meeting basic needs and paying off any debts. It was a blessing to work in the public school when the health insurance was part of the benefit, and 8% deduction of salary toward retirement was mandatory with 8% matching fund from the school district. Any part of the wants was not in consideration for years. But I started saving as soon as I could.

Continue reading…

 

 

 

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