Financial Fundamentals

A brief explanation of various statistics used in finance and how to understand them.[lwptoc] Average, Mean, Median Average (Generic Term)The term "average" is a generic term that refers to a central value of a dataset. It is most often used interchangeably with "mean," but in broader terms, it can also refer to other measures of central tendency, such as the median and mode.There are several types of averages that can be used in finance and each has its strengths.Mean (Arithmetic Mean)The mean is a type of average, often called the arithmetic mean. The Mean is most likely what most people…

Debit Cards and Credit Cards are two easy ways to pay for everyday expenses. Nearly all businesses accept both in similar fashion but is there one that shines above the other? This article will explore the reasons why credit cards often provide more advantages than debit cards, making them a preferable choice for many consumers. Fraud Protection Debit Cards A fraudster who gets access to your debit card has access to spend all of the money in your checking account. While banks will typically reverse these charges, it can take some time to do so leaving you low or out…

Whenever a conversation about reducing expenses comes up, it inevitably leads to discussions around how many lattes you should drink, times you eat out per week, or other ways to reduce expenses by cutting costs. While that part of the conversation can have its place, the first place I like to start when reducing expenses are in those area's that don't impact your lifestyle one bit!Here is a list of 29 ways to reduce your expenses without reducing your lifestyle! Eliminating Junk Expenses 1. Stop Paying for Things You Don't Use!​ Take a look at each charge on your credit…

Maximizing the benefits of credits cards, aka Travel Hacking, can be an alluring activity. From the large sign on bonus' to the promises of free flights, free hotel nights, exclusive access to lounges, and more has spawned a generation of those looking to take every last opportunity to maximize the benefits they get through their credit cards. While there are certainly some benefits of travel hacking, it can also be done incorrectly leading to a worse financial situation. Credit cards lead to certain behaviors that, if not controlled, can leave people indebted at high rates jeopardizing their financial futures.  Cardinal Rule…

Understanding your credit score is crucial for financial well-being. It plays a pivotal role in determining your ability to secure loans, credit cards, and favorable interest rates. Fortunately, checking your credit score has become easier than ever, and you can do it for free. In this guide, we will walk you through the process, providing information on contacting credit agencies, using reliable websites, and exploring alternative monitoring methods. The Three Credit Agencies There are three major credit reporting agencies in the United States: Equifax, Experian, and TransUnion. These agencies play a crucial role in the financial system by collecting and…

With the basic budgeting techniques covered in Part 1, we will now cover your income and expenses in more depth. In this article, I'll cover some common questions about each high-level category and provide tips on navigating, finding, and budgeting for each side of the equation. If you missed Part 1, check it out here: Budgeting Part 1: The Basics – Gilbert Wealth Determining Your Income This is the fun part - how much money you have coming in the door! Your income is the first step in developing a budget because it tells you how much you have to budget.…

Knowing how to budget is essential skill for financial success. It is the first step towards understanding your overall financial picture and planning for your future. Unfortunately, budgeting can be intimidating and overwhelming due to the sheer number of methods and techniques that exist. In this introduction, I will break down the fundamentals of budgeting, discuss some popular approaches, and provide a summary of key takeaways. With a solid understanding of budgeting basics under your belt, you'll be ready to tackle any challenge that comes your way!If you need convincing that you should budget, check out the 8 Benefits of…