Advise & Conquer

Benefits of a Credit Card

January 23, 2018

Having a credit card is very important to build your personal credit. This is crucial for making sure you can rent an apartment, or take out loans in the future. Building credit, however, is not the only reason to have a credit card, you can also get some rewards, as long as you’re smart about using the card. Remember, with credit cards, the higher the risk, the higher the reward.

Typically if you haven’t built much credit yet, and have a limited income, you’re best bet will be a more basic card. This will be something without a fee, and with low monthly interest rates. It would also most likely have more basic rewards, like 1% cash back.

After building up some credit with a basic card, or paying off loans, you can get a better rewards card. These may have higher interest rates and a yearly fee, but they’ll have much better rewards. These rewards may include 2% or 3% cash back, travel credits, free TSA Global Entry, and much more. The key to these cards is making sure you’re paying off the card monthly so it doesn’t add interest, while spending enough to earn rewards that will make the card worth the annual fee.
Is it ‘whisky’ or ‘whiskey?’

January 18, 2018

People are constantly questioning the difference between ‘whisky’ and ‘whiskey.’ Is there an actual difference in the product? Is it just a spelling preference? Well, the difference is pretty simple, but important (if you’re in Scotland), so let me explain:

Both versions of the word come from Celtic roots, but the spelling difference has to do with the type of drink.

‘Whisky’ typically refers to Scotch whisky and Scotch-inspired liquors. Make sure to use this properly if you go to Scotland, otherwise you’ll be clearly labeling yourself as a tourist.

‘Whiskey’ is usually used to denote the American and Irish liquors.

We’ll get into the difference between the liquors themselves later, but the reason for the two spellings essentially comes down to where the liquor is made.
Different types of bank accounts explained

January 17, 2018

Savings

Interest to encourage saving money. Usually higher interest than checking acct, but lower than CDs. Can deposit & withdraw, but not usually write checks or use Debit card.

Basic Checking

Allow for basics like checks and debit cards. Not much else, like interest. Limit certain behaviors.

Interest-Bearing Checking

Provide interest, but cost more than basic checking. Usually have a minimum balance and have fewer restrictions.

Money Market Deposit (MMDA)

Higher minimum balance. Restrictions on what you can do. Invest your money in short term debt

Certificate of Deposit

Required to leave money for set amount of time. Higher interest rates for longer periods. Safe investment. Penalized for early withdrawal.
What exactly is compound interest

January 17, 2018

Compound interest is very important to understand so you can get the most out of your money. It is when you earn interest on the interest you’ve already earned on an investment. When you invest money in a retirement account you earn interest on that principal sum every period, annually or monthly. The key to compound interest is that the money earned from that interest is added back into the investment. Now you are earning interest on the principal investment, as well as on the interest earned.

For example: If you invest $10,000 and earn 10% annually, after one year you would have earned $1,000 in interest after one year. This is then reinvested to the principal sum ($10,000), so heading into year two you have $11,000. Then you would earn 10% on that, which yields $1,100 in interest after year two. This is reinvested, and the cycle continues. This doesn’t seem that important at the beginning, but this adds up. After 35 years with an investment of $10,000 at an interest rate of 10%, you would end up with $281,024. But had you invested just 5 years earlier, totaling 40 years, you would end up with over $160,000 more than that! A total of $452,593!

This is why investing early is so important. It seems like touching your investment is a long way off, but just a few extra years can make a world of difference.
Stop working out in that old t-shirt

January 17, 2018

I’d highly recommend getting good workout clothes for a few reasons.

If you’re working out, you want to get healthier or look better, and liking your clothes will make you more confident and ready to work hard. When you don’t feel like getting off the couch, it can help to have some clothes you love.

It can also be important for health reasons. Cheap cotton t-shirts (especially the free ones from school that everyone runs in) soak up your sweat and hold it against your skin. This can actually clog your pores or cause infections. Athletic material clothes (like polyester and Lycra) are meant to pull that moisture off of your skin and allow your skin to breathe.

You’ll look better and feel better if you have the proper clothing, so if you’re serious about getting healthy, get some serious gear.