10 Money Answers to the Most Frequently Asked Questions

Money answers
Money answers

We all have financial worries with zero money answers to our questions, but how often do we truly ask about them? We’ve combed the web for the best financial advice and money answers so you can make an educated decision.

Money is a cause of stress for many people. Many of us feel powerless and, to be honest, a little stupid when it comes to money, whether it’s dividing a birthday brunch with twelve college mates, negotiating student debt, or figuring out what a 401k is.

Money answers
Money answers

Seriously, why wasn’t this discussed in school? That’s why we put together a list of ten of the most daunting money questions and tried our hardest to give money answers. Alternatively, they can point you in the proper way. Let’s talk about money now.

1. Is it really so bad if I don’t pay off my credit card each month?

It’s bad. Sorry, but this is correct. Simply ask FICO. A solid credit score is required for many activities, like leasing a car, taking out a loan, and renting an apartment. All of these things are really important. Bad credit may be a hindrance in a variety of ways, and credit collectors are simply trained to raise your anxiety levels to dangerously high levels.

Make a monthly payment on your credit card. Make a call to your friendly creditor if the debt is unmanageable. You might be able to come up with a new payment plan and reclaim the hours of sleep you’ve lost owing to financial stress.

This money answer basically advocates for moderation and management of your credit card risks when you’re faced with one.

Allow for unforeseen circumstances

Credit cards are particularly handy in times of need, such as when you don’t have enough cash to cover an unexpected auto repair cost or a last-minute ticket home. Don’t beat yourself up if you can’t pay off your credit card every month, but don’t let yourself off the hook either.

According to the credit-utilization ratio and many more money answers, the sweet spot is keeping your overall debt at 30% or less of your credit limit.

Is there a fantastic balance? It’s not a big deal. Simply make sure you pay your bills on time and set up a budget that permits you to pay off more than the minimum each month until you’ve gotten everything under control.

This is because credit cards have high interest rates, and if you don’t develop a strategy to pay them off, they can seriously obstruct your total financial goals. If you’re ready to look at your income, debt, and budget honestly, credit cards don’t have to be frightening. The Financial Diet has some extra advice on overcoming debt anxiety.

2. How much should I put aside for a “Emergency Fund”?

Financial circles appear to agree that three to six months of post-tax income is sufficient. Six months is ideal, but considering that the majority of us don’t have any emergency funds, you’ll be ahead of the game if you make it halfway. This money answer could potentially save lives.

3. How Does a Realistic Budget Appear?

Is there anything more satisfying than eating Ramen noodles and working on your budget at home on a Friday night? Oh, literally anything is more enticing than that? We understand.

Making a budget or planning your finances can be intimidating. It’s a true moment of transparency, especially when you take the time to examine your previous spending habits. But go ahead and do it.


What happened was that I learned about the 50/20/30 scheme from a money answer. You allocate 50% of your income to required costs (rent, utilities, vehicle payment), 20% to savings, and 30% to discretionary spending. That’s all there is to it. Groceries, petrol, and beverages and nibbles out are all included in the flex proportion, which is ideal if you’re single and eat more out than home.

This is one of the cardinal laws from the book You Need a Budget, and we think it’s a good one. When creating a budget—and when it’s time to alter it—keep “Future You” in mind. Make your future self happy in both the short and long term.

4. Is There Such a Thing As Too Much Debt – Money Answers?

Again, it is debatable. Student loans are one thing, and you may have heard them referred to as “good debt” as opposed to credit card debt, which is commonly referred to as “bad debt.” This is due to the fact that student loan debt has a lower interest rate and the belief that earning a degree would help you find a better-paying job.

When it comes to credit, aim for a 30 percent or lower utilization rate. The goal figure for your debt in general (including vehicle loans, real estate loans, and personal loans) is 20% or less.

Still undecided? To assess, ask yourself the following questions: Can you merely pay the bare minimum on your bills? Are you putting off paying certain expenses in order to pay off others? Do you have all of your cards maxed out? Do you eke out a livelihood from paycheck to paycheck?

If you’re maxed over on one or more cards, make a strategy to pay them off as soon as possible. This money answer is very important to you. Pay off the card with the highest interest rate first, then go over the remaining cards one by one. To assist you, use our credit payment calculator.

5. How Do I Get Good Health Insurance if I Don’t Work Somewhere That Provides It?

You require it, but isn’t it terrifying? Money answers can scare. Take a deep breath in and out. You can use the Freelancer Union’s benefits system to assist you to figure out your alternatives, in addition to healthcare.gov’s tools for self-employed people.

The goal is to make sure you don’t miss any vital deadlines. And it’s fantastic if you have a doctor you adore. Use these to limit down your coverage options based on which plans they accept.

6. How Much Should I Spend on Recreational Activities?

This is mostly determined by your way of life and geographic area. Many financial gurus advise allocating 9-10 percent of your budget to food expenses. Once you’ve decided on a number, attempt to stick to it.

When it comes to “fun” budgets, we’ve heard a lot of various suggestions. We’ve read that 30% of your budget may be allocated to “items you desire but don’t need,” and that 10% is a “fun” magic figure.

Examine your previous year’s spending to discover how much you spent on “fun” (ie. nights out, clothing, makeup, or getaway weekends) With this in mind, create a fun budget. But keep in mind that going over your “fun” budget only once does not imply you’ve “failed” and your entire budget is doomed.

7. When Should I Begin Saving for My Retirement?

It’s called financial adulting when you do it as soon as you can. I know, it’s a cheap shot. However, compounding interest means that the sooner you start saving, the more you will accumulate.

Consider putting some of your monthly savings into a personal retirement account if your employer doesn’t provide a 401k or similar plan. If your business offers optional retirement programs, you should take advantage of them.

By the way, if they offer matching, always go for the most because no one wants to waste free money. Other retirement alternatives include IRAs, which come in both Roth and Traditional varieties. If you’re a little further along in your retirement planning, mutual funds, bonds, and other options are worth studying.

There’s always an exception: if you have high-interest debt (such as those pesky credit cards from question 1), prioritize paying it down before thinking about retirement. If you don’t have any emergency funds, you’re in the same boat. Read Time Magazine’s 5 pieces of retirement savings advice for 20 and 30 somethings for more information.

8. How Can I Save Enough Money to Go on a Big Trip Every Year?

By establishing a second savings account dedicated just to that trip. Make a regular payment from your fun money account to the account every week. Keep an eye on the total. You should also think about places where you can save money in order to attain your objective.

You could save $24 a month if you avoided two lattes every week (average price with tip: $4). This year’s figure is $288. To save money in other areas, try this 30-day money challenge.

9. My Partner and I are moving in together. How Do We Split Up Our Money?

Moving in together—and dividing expenses—seems like it would provide a lot of peace of mind, but it can have the opposite effect. If you’re not legally related to each other, you shouldn’t share accounts.

It’s also a no-no if one spouse has significantly more debt than the other. But what about rent and other living expenses?

Although splitting everything evenly appears to be ideal, we all know how much more difficult partnerships can be. As a result, don’t hold yourself to a standard based on what you believe others should do. Make a set of rules that you and your partner are both happy with.

10. With my budget, I’ve already cut corners (Skipping the Lattes, Packing Lunch…). It Isn’t Enough Anymore. Any more money answers?

Cutting your avocado toast from your budget isn’t going to put you in a mortgage-ready position overnight, but good luck selling that one, Boomers. It’s possible that your costs are out of proportion to your income.

Calculate your personal burn rate and modify your spending accordingly. Are you still getting bad results? It might be time to ask for a raise or start a side venture to supplement your income.


We all have these issues, but getting answers to your questions is where the problem is. Understanding the terms in the money answers used here helps to solve a bulk of many financial issues and because what led to most in the first place is a lack of the required knowledge to navigate the water of personal finance.


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