Moreover, cashback rewards encourage more spending, and if you carry a balance, the interest you pay often outweighs the cashback you earn. The smartest way to maximize your money isn’t by relying on a system designed to profit off your spending habits but by choosing financial tools that give you real control over your money.

That’s why solutions like LquidPay (https://www.lquid.finance/LquidPay/) exist. Instead of being tied to a traditional credit system, LquidPay allows you to spend your crypto assets seamlessly, offering real-time crypto-to-fiat conversion without the hidden costs of traditional banks. No interest, no debt traps—just seamless financial freedom.

What do you think? Are cashback credit cards really a good deal, or just another way to keep you spending? Let’s discuss!

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That said, I would start with a fiduciary because at least they have chosen a model of a higher standard of accountability. Brokers, which are the representatives at the large banks, have a standard of “suitability” meaning that as long as they put you into something suitable and disclose the risks, their liability is limited.

Fiduciaries, independent Registered Investment Advisors (RIAs), have a higher standard. They much try to put you into the best product they can with the knowledge that they have. By law they must put the clients’ needs first.

An example of the difference is that if two mutual funds, which are exactly the same (run by the same people with the same strategy and the same investments) except for that one of the funds pays the brokers a trailing fee (usually unbeknownst to the client) and one doesn’t, the one that pays out the trailing commissions will under-perform by that paid fee. A broker can (will usually) use the one that pays the fee to himself, and an independent RIA can only use the one that does not pay out a fee.

Sometimes a broker will either put a lot of in-house funds into a client’s portfolio or use a lot of funds from one mutual fund company. But you must realize that no firm has the best strategy for most asset classes (large-cap, small-cap, international, bonds, etc.), so there must be a reason for that broker committing so much of the client’s assets to a particular firm. Usually that answer is in the form of compensation, either overtly through trailing fees or via perks; either way, that strategy is impossible to be the best solution for the client.

In any field there will be people who cheat or simple don’t have the skill set to do a great job, but in looking for an investment advisor, a fiduciary is a good place to start. From there, ask a lot of questions!

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- Set realistic goals: Consider your needs and resources, and how much you can save each month

-Track expenses: Identify areas where you can cut back

- Create a budget: Make saving money a habit and consistently save the amount you've set aside

- Automate savings: Set up automatic transfers to your emergency fund

- Boost your income: Find ways to increase your income

- Review your progress: Regularly check in on your progress and make adjustments as needed

- Choose a good savings account: Consider a money market account, which can offer good returns on large deposits

- Prioritize your needs: Focus on saving for your needs, rather than following generic savings rules

Choose the right card: Select a card that matches your spending habits and needs. For example, you might choose a travel card for airfare or a cash-back card for groceries.
Use multiple cards: Use different cards for different purchases to optimize your earnings.
Take advantage of bonus offers: Look for offers that give extra points for specific types of spending, like groceries, dining, or gas.
Pay attention to rotating rewards: Credit card companies often rotate rewards, so look for good offers when the categories change.
Make everyday purchases with your credit card: Use your credit card instead of your debit card for everyday expenses.
Explore other programs: Look for programs that offer additional perks, like cash back, points, or discounts.
Be strategic with your spending: Put as much of your daily spending as possible on your rewards-earning credit cards.
Research offers: Don't just go for the first scheme you see.
Know your limits: Make sure you know your credit limit and whether it's enough to trigger bonus points or cash back.
Pay your bill on time: Make the minimum payment required by the due date to avoid late fees.
Pay your balance in full: Try to pay the full balance every month to avoid paying interest.

Getting started with self-publishing can be a bit difficult but doesn’t have to be.

After publishing 200+ books on Amazon and running 120 million Amazon ads, I discovered the secret to getting books self-published easily and selling.

The key is to break down the steps into easy-to-follow bite-sized chunks as I lay out in my free self-publishing secrets checklist.

Pay bills on time

Set up automatic payments or reminders
Pay your bills more frequently than once a month
Contact your bank or credit card company to find out when they report to credit bureaus

Reduce credit utilization Keep your credit balance low, Pay off your debt, Request a credit limit increase, and Only charge what you can pay off each month.

Other ways to improve your credit score

Become an authorized user on a friend or family member's credit card
Limit your credit applications
Build up your savings
Close unused credit card accounts

Short-term goals
These are goals that you want to achieve within five years or less. Examples include saving for a new phone or a trip. Short-term goals are often achieved using low-risk investments, such as money market accounts, CDs, and traditional savings accounts.

Long-term goals
These are goals that are at least five years away and can include saving for retirement or buying a house. Long-term goals are often achieved through investing, which allows time for performance fluctuations.
It’s important to have a balance between short-term and long-term goals. Short-term goals can provide quick wins and help build momentum for long-term goals. However, it’s important to keep long-term goals in mind and not neglect them.

Here are some tips for keeping your goals in sync:
Work backward: Start with your long-term goals and work backward to set short-term goals that will help you achieve them.

Reevaluate: Long-term strategies require consistent re-evaluation.

Build an emergency fund: An emergency fund can be part of a short-term savings plan, but it’s important to maintain and build it throughout your life.

Set Financial Goals for the Family
Setting big-picture and everyday financial goals for the family can help provide the “why” for your plan. It could be things far off into the future, like saving for a home, a college education, or retirement. Or it might be short-term goals, like building an emergency fund, paying off a debt, or taking a family vacation.

Once you have your list of goals, think about applying some rule-of-thumb advice to your plan. “One that often makes sense is the 50-30-20 rule,” says Brandon Robinson, president and founder of JBR Associates Financial Services in Plano, Texas. “It keeps things simple.”

Here’s how it works. You allocate:

50% of your income toward your needs (food, housing, utilities, etc.)
30% toward your wants (entertainment, eating out, travel, etc.)
20% toward investments and savings
You can choose a different percentage breakdown or try a different method altogether—and don’t be afraid to try more than one method until you find one that works best for your family. The key is giving your plan some guardrails.

Create a Family Budget
Why is a budget an essential tool for your family's financial plan? “You can’t manage what you can’t measure. You have to know where the money is going,” Kovar says.

Considering that nearly three-quarters of parents (73%) report having trouble keeping up with expenses as of April 2023, according to a New York Life Wealth Watch survey, it’s more important than ever to dial into where your dollars are going.

Build an Emergency Fund
Families can save money for a variety of goals simultaneously, but your top-priority savings goal should be an emergency fund, if you don’t have one already. Having an emergency fund for unexpected expenses such as home repairs or a medical emergency can save you from going into debt or even financial ruin.

If you’re starting from scratch, open a separate savings account and set up an automatic deposit on a monthly basis or every payday. If you go with a high-yield savings account, you can earn a little interest on top of your contributions. Transfer as little as $50 to $100 a month to start, but the ultimate goal is to build up enough savings to cover three to six months of your expenses in case of a job loss, personal crisis, or other unexpected event.

Manage Debt as a Family
Debt can slow down the progress you make toward your financial goals. While some debt like a mortgage might be necessary, according to Robinson, a lot of families tend to have debt because they overspend on their wants, running up high credit card bills. Other times, a lack of emergency funds means having to rely on credit to manage unexpected expenses.

Whatever the reason, if you do have high-interest balances, you’ll want to prioritize those payments for a period of time and be consistent. It might require temporarily trimming some areas of your budget or bringing in extra income. If you’re not sure where to start, you can work with a credit counsellor to help you or explore other options.

Protect Your Family with Insurance
If you’re doing the hard work of sticking to a family financial plan, the last thing you want is for unforeseen circumstances to undo your progress. That’s where insurance products come in.

The major types to have include home and auto insurance, health insurance, and term life insurance. With the latter, if you have people who depend on you for income, a term life policy that is worth several times your annual income can help your loved ones financially if you die unexpectedly.

Teach Financial Literacy to Children

Financial education should be a family affair, according to Tyler Meyer, CFP and founder of RetireToAbundance.com. “Consider introducing a ‘Family Finance Night’ where everyone, regardless of age, shares their financial insights,” he says. “This not only cultivates financial literacy but also creates a supportive environment for open conversations about money, reinforcing positive financial habits.”

You can also look for teachable money moments when shopping together or teach kids to allocate their allowance and gift money into spend, save, and donate buckets.

Review and Update Your Family Financial Plan
A family financial plan isn’t meant to be static—it should evolve as your finances and priorities change. “Schedule a monthly check-in with your spouse and/or kids, and then once or twice a year, you can go more in-depth,” Kovar says.

You also might choose to meet with a financial advisor or planner once per year to go over your financial planning checklist, explore other ideas, and keep you on the right track.

The Bottom Line
Setting financial goals with your entire family in mind helps you prioritize and achieve financial milestones. Although it can seem daunting at first, once you create the family budget, tools, and technology can help you put much of your plan on autopilot.

Once you develop a financial safety net through your emergency fund and insurance products, manage debt, and start seeing your savings and investment accounts grow, it can strengthen your family’s financial stability not just today, but tomorrow as well.

When you are debt free, you would be able to save and invest as your credit score improves

Assess your current situation: Review your income, expenses, debts, and assets to understand your financial health.

Set SMART goals: Make your goals specific, measurable, achievable, relevant, and time-bound.

Prioritize goals: Consider the importance and urgency of each goal.

Create an action plan: Break down your goals into smaller steps, identify the resources you need, and set deadlines.

Track your progress: Regularly monitor your progress and adjust your plan as needed.

Create a budget: Consider your income, expenses, and savings, and allocate funds to achieve your goals.

Set achievable goals: Goals that are too ambitious can be discouraging, while smaller goals can boost your confidence.
Financial goals can help you manage your money, guide your decision-making, and motivate you.

Create a roadmap: Setting goals helps you create a plan to get from where you are now to where you want to be.

Avoid running out of money: A retirement plan can help you calculate how much income you can safely withdraw from your portfolio and avoid running out of money in retirement.

Plan for your desired lifestyle: A retirement plan helps you accumulate enough money to pay for the lifestyle you want to enjoy in retirement.

Make better career decisions
A retirement plan can help you work around a career that helps you achieve your financial goals.

Here are some tips for planning for retirement:

Estimate your expenses
An accurate estimate of your retirement expenses will help you determine how much you need to save each year.

Update your plan
It's a good idea to update your plan once a year to make sure you're keeping on track.

Consider longevity risk
Actuarial life tables can help you estimate the longevity rates of individuals and couples.

Consider unforeseen emergencies
A good retirement plan can help take care of any unforeseen emergencies.

Consider your Social Security benefits
You can visit the Social Security Administration website to get a complete understanding of your Social Security benefits.

NetWorth=Assets-Liabilities 

For example, your net worth would be the value of your primary residence, investment portfolio, and other assets minus the balance of your mortgage and car loan. 

A positive net worth means your assets are greater than your liabilities, while a negative net worth means you have more debt than assets. 

Your net worth provides a snapshot of your overall financial health and can help you understand where you are on your financial journey. It can be a useful tool for: 

Evaluating your financial well-being: You can track your net worth year-over-year to see if it's trending in a positive direction. 

Improving your financial situation: You can use your net worth to identify areas where you can decrease liabilities or increase assets. 

It's an important metric to gauge both company and individual net worth, providing a useful snapshot of its current financial position.

Planning for retirement: Your net worth can be a factor in retirement planning. 

Here we delve into the essence of goal-based investing, offering insights into how investors can align their portfolios with their life’s objectives and underscore the importance of distinguishing between short-term and long-term goals.

Understanding Goal-Based Investing

Goal-based investing (GBI) centres on identifying personal and financial objectives and crafting investment strategies to achieve them within set time frames. Unlike traditional investing, which often focuses on maximising returns relative to the market, GBI emphasises personal goal achievement as the primary measure of success. This approach encourages investors to create separate investment "buckets" for each goal, with each bucket having its own asset allocation strategy based on the goal’s time horizon and risk tolerance.

Short-term vs. Long-term Objectives

A critical aspect of GBI is distinguishing between short-term and long-term objectives:

Short-term objectives might include saving for a vacation, emergency fund, or a down payment on a home. These goals generally have a time horizon of less than five years and require investments that are less volatile and more liquid.
Long-term objectives could be retirement, funding a child’s education, or building wealth over time. These goals usually have a time horizon of more than five years, allowing for a higher risk tolerance and a greater focus on growth-oriented investments.

Aligning Your Portfolio with Life’s Objectives

Step 1: Define Your Goals
The first step in goal-based investing is to clearly define your financial goals. Be specific about what each goal is, how much money it will require, and your time horizon for achieving it. This clarity is the foundation of a goal-based investment strategy.

Step 2: Assess Your Risk Tolerance
Understanding your risk tolerance is essential in aligning your investment strategy with your goals. Short-term goals often require a conservative approach due to the limited time to recover from potential market downturns. In contrast, long-term goals can usually withstand more risk, benefiting from the potential for higher returns over time.

Step 3: Create a Customised Investment Plan
Once you have defined your goals and assessed your risk tolerance, the next step is to create a customised investment plan for each goal. This involves selecting the appropriate asset allocation for each goal based on its time horizon and your risk tolerance. For short-term goals, this may mean prioritising principal protection and liquidity through investments like high-yield savings accounts, certificates of deposit, or short-term bonds. For long-term goals, a diversified portfolio of stocks, bonds, and other assets can offer the growth potential needed to achieve your objectives.

Step 4: Monitor and Adjust
Regularly review your investment strategy and portfolio performance in the context of your goals. Life changes, economic conditions, and market fluctuations may necessitate adjustments to your investment approach. Being flexible and willing to adjust your plans is crucial in staying aligned with your evolving financial objectives.

The Importance of Goal-Based Investing
Goal-based investing offers several advantages over traditional investing approaches:

Personalisation: It tailors investment strategies to individual goals, making the investment process more relevant and personalised.
Risk Management: By aligning investments with the specific time horizon and risk tolerance of each goal, GBI helps manage overall portfolio risk more effectively.
Motivation: Seeing how investments directly contribute to achieving personal goals can be more motivating and satisfying than focusing solely on returns.

Goal-based investing is a shift towards more personalised and purpose-driven financial planning. By aligning investment strategies with specific life objectives, investors can navigate the complexities of the financial markets with greater confidence and clarity. Whether saving for a short-term project or planning for retirement, a goal-based approach ensures that every investment decision moves you closer to your life’s objectives. This strategic alignment not only optimises financial outcomes but also brings a sense of achievement and peace of mind, knowing that your financial actions are directly contributing to realising your life goals.

1. Set a specific goal: Clearly define your financial goal, such as the amount you need to save for a down payment on a home or the funds required for education costs. Determine a timeline for achieving the goal and break it down into manageable milestones.

2. Research and estimate costs: Gather information about the specific expense you are planning for. Research current home prices or tuition fees to get a realistic estimate. Consider other associated costs like closing fees, property taxes, or textbooks.

3. Create a dedicated savings plan: Develop a savings plan that aligns with your goal. Determine how much you need to save each month to reach your target within the desired timeframe. Automate your savings by setting up regular transfers to a dedicated savings account.

4. Cut back on expenses: Review your current budget and identify areas where you can cut back to allocate more funds towards your savings goal. Trim unnecessary expenses, reduce discretionary spending, and consider making lifestyle adjustments to increase your savings rate.

5. Explore government programs and grants: Look into government programs or grants available for specific expenses like education or homeownership. Research eligibility criteria and requirements to take advantage of any financial assistance that may be available to you.

6. Consider alternative financing options: If saving the entire amount seems challenging, explore alternative financing options. For example, for education costs, research scholarships, grants, or student loans. For a home purchase, consider mortgage options and down payment assistance programs.

7. Consult with professionals: Seek advice from financial advisors, mortgage brokers, or real estate professionals to gain insights and guidance on planning for large expenses. They can provide valuable expertise and help you navigate the complexities of the process.

8. Review and adjust your plan regularly: Revisit your savings plan and goals periodically to ensure you are on track. Adjust your plan as needed based on changes in your financial situation, market conditions, or any other relevant factors.

9. Start early and be consistent: The earlier you start planning and saving for large expenses, the more time you have to accumulate funds. Consistency is key, so commit to your savings plan and stay disciplined even when faced with unexpected financial challenges.

10. Prioritize your goals: If you have multiple large expenses on the horizon, prioritize them based on their importance and urgency. Determine which goal requires immediate attention and focus your resources accordingly.

Remember, planning for significant expenses requires a long-term perspective and financial discipline. By setting clear goals, developing a savings strategy, and being proactive, you can gradually work towards achieving your objectives.

Step 1: Let’s think big picture. What is your overall college savings goal?

There are many routes you can take when setting your goal. You may want to pay for your kid to go to college no matter how expensive the school is. Or maybe you’d rather pay for the equivalent of a four-year in-state school, but if your child goes to an out-of-state or private school, then it’s up to them to fund the difference. Alternatively, you might decide that they should have “skin in the game” and so rather than contributing financially, you assist them with taking out student loans and/or getting a part-time job. In the end, there is no right or wrong approach to education planning - although as a UNC-Chapel Hill alumna, I can promise you I won’t be paying for my future children to go to Duke!

One final note: don’t forget to think about your education goal in the context of your overall plan. Will you be sacrificing your own future (such as having to delay retirement) by prioritizing a college savings goal? In that situation, I urge you to consider putting yourself first - your child will have plenty of time to pay off student loans after school, but you may have a limited amount of time to save for retirement.

Step 2: You’ve determined your goal, so we’ll talk money. How much will it actually cost?

This is where you should do some research and crunch the numbers (or have your financial advisor run some projections). In the end, you’ll want to know the total cost for your goal, adjusted for inflation. Here are some quick steps to get a reasonable estimate of this expense (simplified but close enough):

1. Determine how many years away the expense is, i.e., how many years until your child will go to college.

2. Multiply the current annual cost by a reasonable percentage for inflation for each year until college starts.

For example, if my goal is to pay for a public school, I might find that the current average annual cost is $25,000. If my child is 4 years away from school and I assume an inflation rate of 5%, I would multiply:

$25,000 * 1.05 * 1.05 * 1.05 * 1.05 = $30,387

3. Finally, multiply that number by the total number of years of college you want to pay for, and you’ll have a rough estimate of the total cost in future dollars.

Continuing my example above, we’ll assume I want to pay for 4 years of school.

$30,387 *4 = $121,551

Step 3: You’ve estimated the total cost. Now what?

First: don’t panic if the total estimated cost seems like a staggeringly large number. You can always adjust your goal if it doesn’t align with your financial situation. But also, depending on the time horizon until college starts, it will likely make sense for you to invest your college savings and take advantage of growth in the stock market.

If college is over 3 years away:

Consider opening and funding a 529 plan. 529 plans are tax-advantaged investment accounts specifically designed for education savings. The primary advantage of a 529 is that any investment earnings are tax-free upon withdrawal if you use the funds for a qualified education expense. Depending on what state you live in, your contributions to the account may also be tax deductible. However, if you withdraw funds for a non-qualified expense, you pay income tax + a 10% penalty on any investment earnings. For that reason, I recommend that you avoid over-funding a 529 plan – you may want to target having a 529 balance of ~50% of the total estimated college cost.

Contributing to a Roth IRA can also be a strategic way to save for college. Although Roth IRAs are intended to be retirement savings vehicles, you are generally able to withdraw the dollars that you contributed without incurring any taxes or penalties. This makes Roth IRAs a convenient way to save for retirement while also building in flexibility for funding college expenses.

Investing in a non-retirement brokerage account is another method of saving for college that offers great flexibility and liquidity. While these accounts do not enjoy any particular tax benefits, there is no limit to how much you can invest and you’re able to liquidate and withdraw funds at any point, although you do still need to be aware of potential market volatility.

Finally, cash accounts can be a simple way to supplement your college savings. Whether you build up a savings account specifically for education expenses or plan to pay for some college bills out of regular cash flow, this is a good option that doesn’t involve market risk.

If college is less than 3 years away:

Any of the above investment accounts could still make sense for college savings, but you’ll want to be sure to invest in a more conservative allocation to protect the funds from market volatility since your time frame is shorter. For the same reason, building up cash accounts will also be a smart tactic.

Therefore, if you follow these steps well, you will be able to establish a plan for college savings. However, the more time you give yourself to save for your kids’ college expenses, the easier it will be to balance all your financial goals.

1. Set realistic goals: Make sure your goals are achievable. Begin by defining specific, measurable, achievable, realistic and timely financial goals for you to remain motivated. Whether it's saving a certain amount of money, paying off debt, or investing for retirement, having a clear sense of what you want to accomplish provides direction and purpose.

2. Track your progress: Regularly check in on your progress towards your goals. This can easily be done by dividing your larger financial goals into smaller, manageable tasks. Say your goal is to put $500 into savings each month — great! How are you practically going to do this? This approach not only makes your goals less daunting but also allows you to celebrate smaller victories along the way, keeping motivation levels high.

3. Learn from your mistakes: Use your failures as learning opportunities. Understand the reasons behind your financial goals and learn where you had gone wrong in the past to remain afloat in maintaining motivation. Whether it's providing security for your family, achieving financial freedom, or pursuing your passions, connecting your goals to your values can fuel your determination.

4. Manage your emotions: Try to keep stress and other negative emotions in check.

5. Seek support: Ask for feedback and support from others. This can be done by seeking inspiration from books, podcasts, articles, or individuals who have achieved financial success. Learning from the experiences and strategies of others can provide valuable insights and motivation to keep pushing forward. You should also aim to surround yourself with supportive and positive individuals who believe in your ability to financially succeed. Their encouragement and constructive feedback can bolster your confidence and motivation during challenging times.

6. Remind yourself of your purpose: Think about why you're working towards your goals. Establish a consistent routine that includes dedicated time for managing your finances. For example, a common and effective routine people engage is immediately delegating funds to separate accounts whenever they get paid ($200 into savings, $600 into a bill account, $1,000 to the mortgage, and so on). Consistency is key!

7. Practice patience: Be persistent and give yourself time to reach your goals.

8. Educate yourself: Continuously learn about investing and saving.

9. Monitor progress. Keep track of your financial progress using apps, spreadsheets, or journaling to measure your achievements. Seeing how far you've come can boost your confidence and motivation, inspiring you to continue working towards your goals.

10. The last one is to set up a reward system to celebrate milestones and achievements along the way. Whether it's treating yourself to a small indulgence or splurging on a special purchase, rewards serve as incentives to maintain momentum and motivation.