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Being financially literate in today’s economic climate is more important than ever. Understanding finances can help you make better money management decisions, budget your money properly, adequately save for college, and be financially prepared for retirement. While it may sound daunting, financial literacy starts with a budget.

More than 60 million Americans had their identities stolen in 2018, a significant increase from 2015, where more than 15 million consumers were affected. With identity theft numbers on the rise, it certainly doesn’t appear likely that scammers are going away anytime soon.

If you’re a beginning investor, it’s likely you’re concentrating on building your portfolio.  But as important as it is to build that portfolio, you should also ensure that it’s diversified.

Why is a diversified portfolio so important?

There are three key reasons why diversifying is important:

Sometimes simple is best. Many of us tend to complicate our financial situation; overthinking our options while ignoring the basics.

But like anything else, the simplest rules are often the most important ones; and the ones most likely to be ignored. How many of these rules do you follow?

The fourth quarter of 2018 saw financial markets experience higher levels of volatility, with large market swings driven in part by geopolitical issues, in part by the ending of quantitative easing by central banks.  While many of these issues remain unresolved, Q1 of 2019 has seen global markets enjoy a strong recovery from the turmoil. 

How to Avoid Retirement Woes

Most consumers typically have both a credit card and a debit card. Of course, the biggest difference between the two is that a debit card will immediately take money out of your bank account when used, unlike a credit card, which will pay for the purchase and later add the amount of the transaction to your monthly statement.

But are there any other differences between the two?

The year 2018 was a rocky one for financial markets, serving up a big burst of volatility early in the year, and then following on with new all-time highs in major market indices, only to finish up with another round of gut-wrenching plunges that pushed those same indices right back down.

Time certainly goes by fast. One day you’re interviewing for your first job and the next thing you know you’re a few short years from applying for Social Security.

Personal finance, like just about everything else, is mainly common sense. Advice like “don’t spend more than you make; start investing while you’re young; don’t loan money to friends with the expectation of getting it back,” have been around for generations, and most likely will survive the next few generations as well.