You've seen the charts: a line that creeps along for years, then shoots up like a hockey stick, with a caption about “the eighth wonder of the world.” Maybe a friend or an ad told you that $200 a month will make you rich. It sounds great, but you have no idea whether the numbers…
You keep hearing that beginners should “just buy an index fund.” So you look one up, and it says it holds thousands of stocks for a tiny fee. That sounds almost too simple. What are you actually buying? Do you own a little of every company equally? Is it safe because it's diversified?
The 50/30/20 rule sounds simple until you try it. Half for needs, 30% for wants, 20% for savings. Then you look at your paycheck and the questions start. Is that 50% of your salary or what hits your account? Does your 401(k) count? Is your credit card payment a need or savings? And what if…
You've opened a blank spreadsheet, typed “Budget” at the top, and stalled. What goes first? Do you start with what you earn or what you owe? How specific should the lines be? Most advice tells you to make a budget without showing what a finished one looks like.
