Personal Finance Reflection Paper

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During this semester I have learned a lot about personal finance and what it takes to truly be disciplined. I have learned multiple tips from budgeting and spending my money to investing my money into funds that could grow my money for me. Being a waitress it is a little more difficult to manage your money especially when you live off of most of your tips. I have had to keep track of how much money I make every night and how much money I spend knowing I have cash in my pocket. I now deposit all of money straight into the bank so that I can keep track of my spending much easier through my bank statements. I have noticed that I spend a lot more money than I realized I do and have tried to cut down on my spending. I currently do not have a retirement plan set up. After taking personal finance this semester I know that retirement is very important and I need to start one. Growing up I always thought there was only a 401(k) retirement plan and I now know there are different kinds such as Simple IRA, Roth IRA, Traditional IRA and many more. It is very important to know where you are investing your money in an IRA so that you will know how much money you will have when you are ready to retire. I have open credit cards but this class has just helped me understand more about the cards and their terms. I need to be careful with credit cards because it is so easy to open a line of credit without having to read the terms. It is not a bad thing to have a credit line; however, you should know what you are getting into. You should know what the interest rate (APR) will be, if there will be a grace period and what are the rates associated with the card. What are the rates for paying your card late, getting a cash advance and going over the limit of your balance? When buying an automobile or a house the “homework” you need to do for the purchase is almost the same. You need to know how much money you can afford. This goes back to the basics of personal finance and knowing what your budget is and how much you can afford each month. You will need to save for a down payment on both an automobile and a house. When buying a car there are websites like Kelly Blue Book and Edmunds that will help you know how much a vehicle is

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