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Personal Finance: The Complete Guide

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The pandemic that began in March 2020 showed all of these issues in sharp relief and showed the importance of <a href=\"https://www.investopedia.com/emergency-proof-your-finances-4800551\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"2\">planning for emergencies<\/a>.<\/p>" } } , { "@type": "Question", "name": "Should I be managing my finances differently since COVID-19?", "acceptedAnswer": { "@type": "Answer", "text": "<p>What the pandemic showed is that people are a lot more secure if they have an <a href=\"https://www.investopedia.com/terms/e/emergency_fund.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"1\">emergency fund<\/a>, have l<a href=\"https://www.investopedia.com/terms/b/budget.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"2\">earned to budget<\/a> and have created a financial plan–one with a Plan B and Plan C. Those who haven’t done these things, should get busy doing them. It–and the war in Ukraine–are both wake-up calls that <a href=\"https://www.investopedia.com/timeline-of-stock-market-crashes-5217820\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"3\">stock market crashes<\/a> can happen abruptly in a crisis and that everyone needs a <a href=\"https://www.investopedia.com/articles/investing/041415/investing-crisis-high-riskhigh-reward-strategy.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"4\">crisis investment plan<\/a>.<br/><\/p>" } } , { "@type": "Question", "name": "How much liability insurance do I need for my car?", "acceptedAnswer": { "@type": "Answer", "text": "<p>For starters, you need to buy at least <a href=\"https://www.iii.org/automobile-financial-responsibility-laws-by-state\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">the minimum amount<\/a> for your state. The two types of liability coverage for an auto accident are bodily injury liability (for injury to other people) and property damage liability (for property damage). Bodily injury liability specifies  both a per-person liability and a total liability per accident. For any damage outside of that you will need to pay personally, unless you have an <a href=\"https://www.investopedia.com/terms/u/umbrella-insurance-policy.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"2\">umbrella insurance policy<\/a> to make up the difference.<\/p>" } } , { "@type": "Question", "name": "Do you need a smartphone to handle your money today?", "acceptedAnswer": { "@type": "Answer", "text": "<p>It&#39;s certainly looking that way. Even Warren Buffett had to switch to one in 2020. Banking is increasingly done online, budgeting apps are more convenient to use with a phone than a desktop or laptop, and it’s easier to check on your investments. And at work and elsewhere, <a href=\"https://www.investopedia.com/terms/t/twofactor-authentication-2fa.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"1\">two-factor authentication<\/a> pretty much requires having a phone. So goes getting an <a href=\"https://www.investopedia.com/articles/personal-finance/010715/key-differences-between-uber-and-lyft.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"2\">Uber or Lyft<\/a>.<\/p>" } } , { "@type": "Question", "name": "How do I wire money to someone?", "acceptedAnswer": { "@type": "Answer", "text": "<p>If you need to move large amounts of money, a wire transfer–either bank to bank or via an agent such as Western Union–is the safest way to go. Expect to pay a fee and review the fine print before you agree to the transfer. It may take a few hours or days, depending on the details. Note that a wire transfer is different from an <a href=\"https://www.investopedia.com/terms/a/ach.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"1\">Automated Clearing House (ACH) transfer<\/a>. Those are used to pay bills or move money between linked accounts.<\/p>" } } ] } , { "@type": "DefinedTerm", "name": "Personal Finance", "description": "<p>Managing your money—including saving, investing, and setting financial goals—are all part of personal finance. So are areas like budgeting, retirement planning, and saving for your children’s college educations.<\/p>" } , { "@type": "DefinedTerm", "name": "Google Stack", "description": "<p>This free document-scanning and filing app from Google photographs documents like bills and receipts, and stores them as pdfs. It’s only available for Android phones and tablets, not Apple products.<\/p>" } , { "@type": "DefinedTerm", "name": "Roadside Assistance Insurance", "description": "<p>This is the plan you need when your car breaks down on the road. You can get this coverage from your auto insurance company, or from AAA or your credit card. Even your cellphone provider might offer  it. Your vehicle’s age and mileage might be an issue on the coverage you can get, and there will likely be limits on how far you can be towed and how many service calls you get per year. Your car warranty may also cover assistance for a newer car.<\/p>" } , { "@type": "DefinedTerm", "name": "Personal Financial Statement", "description": "<p>Your assets and liabilities–summarized on a document or spreadsheet–are what constitute a personal financial statement. Subtracting your liabilities.  from your assets will yield your net worth. You will need a personal financial statement if you are applying for a mortgage or other loan. It will also let you track your personal worth over time. Interestingly, personal property like jewelry and antiques aren’t generally included in a personal financial statement.<\/p>" } , { "@type": "DefinedTerm", "name": "Ticket to Work Program", "description": "<p>People with disabilities who hope to return to work often worry that they will lose their Medicare disability coverage. This government program allows them to keep their coverage for at least 8½ years. Ticket Holders can receive employment and other services from qualified service providers.<\/p>" } ] } ]</script> </head><body> <!-- resourcesvgftl --> <svg class="mntl-svg-resource is-hidden"> <defs> <symbol id="icon-alert"> <svg width="30" height="29" fill="none" xmlns="http://www.w3.org/2000/svg"><path d="M13.2522 4.38081C14.077 2.92054 16.1389 2.92054 16.9637 4.38081L26.7065 21.6302C27.5313 23.0905 26.5003 24.9158 24.8507 24.9158H5.36517C3.7156 24.9158 2.68462 23.0905 3.5094 21.6302L13.2522 4.38081Z" fill="#fff"/><path fill-rule="evenodd" clip-rule="evenodd" d="M19.6063 2.76459L29.2795 20.1815C31.3267 23.8676 28.7677 28.4753 24.6732 28.4753H5.32681C1.23233 28.4753 -1.32671 23.8676 0.720529 20.1815L10.3937 2.76459C12.441 -0.921533 17.559 -0.921526 19.6063 2.76459ZM16.8425 4.42334C16.0236 2.94889 13.9764 2.94889 13.1575 4.42334L3.4843 21.8402C2.6654 23.3147 3.68902 25.1577 5.32681 25.1577H24.6732C26.311 25.1577 27.3346 23.3147 26.5157 21.8402L16.8425 4.42334Z" fill="#C00"/><path 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It also includes handling individual financial tasks and saving for emergencies. </p> <div id="sponsorship-wrapper_1-0" class="comp sponsorship-wrapper mntl-block"></div></div></div></div><div id="mntl-taxonomysc-content_1-0" class="comp mntl-taxonomysc-content mntl-sc-page mntl-block " data-sc-sticky-offset="60" data-sc-ad-label-height="24" data-sc-ad-track-spacing="100" data-sc-min-track-height="250" data-sc-max-track-height="600" data-sc-breakpoint="50em" data-sc-load-immediate="1" data-sc-content-positions="[300,600,900,1200,1500,1800,2100]" data-bind-scroll-on-start="true"><div id="mntl-sc-block_2-0" class="comp mntl-sc-block finance-sc-block-spotlight mntl-sc-block-spotlight mntl-block"><div id="mntl-sc-block-spotlight__articles_1-0" class="comp mntl-sc-block-spotlight__articles mntl-document-spotlight mntl-document-card-list mntl-card-list mntl-block" data-chunk="36"><a id="mntl-card-list-items_1-0" class="comp mntl-card-list-items mntl-document-card mntl-card card card--no-image" data-doc-id="4231206" data-tax-levels href="https://www.investopedia.com/articles/personal-finance/100516/setting-financial-goals/" data-ordinal="1" data-cta="Read Now ▸"> <div class="loc card__top"><div class="card__media mntl-universal-image universal-image__container"><img data-src="https://www.investopedia.com/thmb/T235RsB9EYKHgMOQ4qPcUtPVad4=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/GuidetoWealthPreservation-recirc3-v1-5e58c8e087884762bdfa52c83e698b32.png" width="1500" height="1000" data-srcset="https://www.investopedia.com/thmb/qKWHirWKkEO2F8Br7ziMMjitgVA=/150x0/filters:no_upscale():max_bytes(150000):strip_icc()/GuidetoWealthPreservation-recirc3-v1-5e58c8e087884762bdfa52c83e698b32.png 150w, https://www.investopedia.com/thmb/Q7G3rqkLLSpG11IhAIu2w1JIqqo=/200x0/filters:no_upscale():max_bytes(150000):strip_icc()/GuidetoWealthPreservation-recirc3-v1-5e58c8e087884762bdfa52c83e698b32.png 200w, https://www.investopedia.com/thmb/hjK3W8UKtnWsi3uNKU0k9lD8MRI=/250x0/filters:no_upscale():max_bytes(150000):strip_icc()/GuidetoWealthPreservation-recirc3-v1-5e58c8e087884762bdfa52c83e698b32.png 250w, https://www.investopedia.com/thmb/KQW_k49bzLyE4UXUIoBoj22NDo8=/302x0/filters:no_upscale():max_bytes(150000):strip_icc()/GuidetoWealthPreservation-recirc3-v1-5e58c8e087884762bdfa52c83e698b32.png 302w" data-sizes="(min-width: 1280px) 300px, (min-width: 800px) calc(25vw - 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1.25rem), (min-width: 640px) calc(33vw - 2rem), calc(50vw - 1.125rem)" alt="paying-bills-kitchen" /> </noscript></div> </div> <div class="card__content " data-tag="Personal Finance"> <div class="card__header"></div> <span class="card__title"><span class="card__title-text ">The Basics of Financial Responsibility</span></span> <div id="article-meta--simple_2-0" class="comp article-meta--simple mntl-block" data-tracking-container="true"><div id="byline--simple_2-0" class="comp byline--simple mntl-block"><div id="byline--simple__pre-author-text_2-0" class="comp byline--simple__pre-author-text mntl-text-block">By</div> <div id="byline--simple__author_2-0" class="comp byline--simple__author mntl-text-block">Lisa Smith</div></div> <div id="displayed-date_2-0" class="comp displayed-date"> <span class="displayed-date__date-text">Updated</span> <span class="displayed-date__date">Dec 31, 2023</span> </div></div> </div> </a> <a id="mntl-card-list-items_3-0" class="comp mntl-card-list-items mntl-document-card mntl-card card card--no-image" data-doc-id="4205166" data-tax-levels href="https://www.investopedia.com/personal-finance/most-common-financial-mistakes/" data-ordinal="3" data-cta="Read Now ▸"> <div class="loc card__top"><div class="card__media mntl-universal-image universal-image__container"><img data-src="https://www.investopedia.com/thmb/8N4LtlrehwRtK8_y3PqLigmfpZI=/5472x3648/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1648880480-5fae58fc9abe48f8a984afac55e65bc6.jpg" width="5472" height="3648" data-srcset="https://www.investopedia.com/thmb/DllwMDl8sGMYNK0JY2DLOSBewnc=/150x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1648880480-5fae58fc9abe48f8a984afac55e65bc6.jpg 150w, https://www.investopedia.com/thmb/vUravJEqANPk7HZ2MeM7Ei5_Sxk=/200x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1648880480-5fae58fc9abe48f8a984afac55e65bc6.jpg 200w, https://www.investopedia.com/thmb/aXwIeXcAqp-pSe-9NMjUGFYs5O8=/250x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1648880480-5fae58fc9abe48f8a984afac55e65bc6.jpg 250w, https://www.investopedia.com/thmb/BxiZmkVd8WJHes819gALFuQRD8M=/302x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1648880480-5fae58fc9abe48f8a984afac55e65bc6.jpg 302w" data-sizes="(min-width: 1280px) 300px, (min-width: 800px) calc(25vw - 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1.25rem), (min-width: 640px) calc(33vw - 2rem), calc(50vw - 1.125rem)" alt="Woman in cafe with shopping bags paying with a credit card" /> </noscript></div> </div> <div class="card__content " data-tag="Personal Finance"> <div class="card__header"></div> <span class="card__title"><span class="card__title-text ">Top 10 Most Common Financial Mistakes</span></span> <div id="article-meta--simple_3-0" class="comp article-meta--simple mntl-block" data-tracking-container="true"><div id="byline--simple_3-0" class="comp byline--simple mntl-block"><div id="byline--simple__pre-author-text_3-0" class="comp byline--simple__pre-author-text mntl-text-block">By</div> <div id="byline--simple__author_3-0" class="comp byline--simple__author mntl-text-block">Emily Norris</div></div> <div id="displayed-date_3-0" class="comp displayed-date"> <span class="displayed-date__date-text">Updated</span> <span class="displayed-date__date">Aug 11, 2024</span> </div></div> </div> </a> <a id="mntl-card-list-items_4-0" class="comp mntl-card-list-items mntl-document-card mntl-card card card--no-image" data-doc-id="5088034" data-tax-levels href="https://www.investopedia.com/top-10-personal-finance-podcasts-5088034" data-ordinal="4" data-cta="Read Now ▸"> <div class="loc card__top"><div class="card__media mntl-universal-image universal-image__container"><img data-src="https://www.investopedia.com/thmb/E1R-VtkxuWo2sf5JIy5NOlfbcMQ=/3000x1996/filters:no_upscale():max_bytes(150000):strip_icc()/Susan-Davis-by-Michael-Czeiszperger-2-5785b3685f9b5831b560f3d7.jpg" width="3000" height="1996" data-srcset="https://www.investopedia.com/thmb/CHkJR8GVCS6DZKxcyNZDS0MOgsQ=/150x0/filters:no_upscale():max_bytes(150000):strip_icc()/Susan-Davis-by-Michael-Czeiszperger-2-5785b3685f9b5831b560f3d7.jpg 150w, https://www.investopedia.com/thmb/9X0_PJvjLPKp6yPP9hQfWyKC0Ao=/200x0/filters:no_upscale():max_bytes(150000):strip_icc()/Susan-Davis-by-Michael-Czeiszperger-2-5785b3685f9b5831b560f3d7.jpg 200w, https://www.investopedia.com/thmb/Es62IxVne27FIP2wd9J1T3m0-_4=/250x0/filters:no_upscale():max_bytes(150000):strip_icc()/Susan-Davis-by-Michael-Czeiszperger-2-5785b3685f9b5831b560f3d7.jpg 250w, https://www.investopedia.com/thmb/ZnieZwEYm853dhdf4tTKlvEr2Pg=/302x0/filters:no_upscale():max_bytes(150000):strip_icc()/Susan-Davis-by-Michael-Czeiszperger-2-5785b3685f9b5831b560f3d7.jpg 302w" data-sizes="(min-width: 1280px) 300px, (min-width: 800px) calc(25vw - 1.25rem), (min-width: 640px) calc(33vw - 2rem), calc(50vw - 1.125rem)" alt="Susan Davis tell authors how to start a podcast and gives podcasting hints." class="lazyload card__img universal-image__image" /> <noscript> <img src="https://www.investopedia.com/thmb/E1R-VtkxuWo2sf5JIy5NOlfbcMQ=/3000x1996/filters:no_upscale():max_bytes(150000):strip_icc()/Susan-Davis-by-Michael-Czeiszperger-2-5785b3685f9b5831b560f3d7.jpg" width="3000" height="1996" class="img--noscript card__img universal-image__image" srcset="https://www.investopedia.com/thmb/CHkJR8GVCS6DZKxcyNZDS0MOgsQ=/150x0/filters:no_upscale():max_bytes(150000):strip_icc()/Susan-Davis-by-Michael-Czeiszperger-2-5785b3685f9b5831b560f3d7.jpg 150w, https://www.investopedia.com/thmb/9X0_PJvjLPKp6yPP9hQfWyKC0Ao=/200x0/filters:no_upscale():max_bytes(150000):strip_icc()/Susan-Davis-by-Michael-Czeiszperger-2-5785b3685f9b5831b560f3d7.jpg 200w, https://www.investopedia.com/thmb/Es62IxVne27FIP2wd9J1T3m0-_4=/250x0/filters:no_upscale():max_bytes(150000):strip_icc()/Susan-Davis-by-Michael-Czeiszperger-2-5785b3685f9b5831b560f3d7.jpg 250w, https://www.investopedia.com/thmb/ZnieZwEYm853dhdf4tTKlvEr2Pg=/302x0/filters:no_upscale():max_bytes(150000):strip_icc()/Susan-Davis-by-Michael-Czeiszperger-2-5785b3685f9b5831b560f3d7.jpg 302w" sizes="(min-width: 1280px) 300px, (min-width: 800px) calc(25vw - 1.25rem), (min-width: 640px) calc(33vw - 2rem), calc(50vw - 1.125rem)" alt="Susan Davis tell authors how to start a podcast and gives podcasting hints." /> </noscript></div> </div> <div class="card__content " data-tag="Personal Finance"> <div class="card__header"></div> <span class="card__title"><span class="card__title-text ">Top 10 Personal Finance Podcasts</span></span> <div id="article-meta--simple_4-0" class="comp article-meta--simple mntl-block" data-tracking-container="true"><div id="byline--simple_4-0" class="comp byline--simple mntl-block"><div id="byline--simple__pre-author-text_4-0" class="comp byline--simple__pre-author-text mntl-text-block">By</div> <div id="byline--simple__author_4-0" class="comp byline--simple__author mntl-text-block">Elana Dure</div></div> <div id="displayed-date_4-0" class="comp displayed-date"> <span class="displayed-date__date-text">Updated</span> <span class="displayed-date__date">Apr 08, 2024</span> </div></div> </div> </a> <a id="mntl-card-list-items_5-0" class="comp mntl-card-list-items mntl-document-card mntl-card card card--no-image" data-doc-id="5092591" data-tax-levels href="https://www.investopedia.com/personal-finance-calendar-5092591" data-ordinal="5" data-cta="Read Now ▸"> <div class="loc card__top"><div class="card__media mntl-universal-image universal-image__container"><img data-src="https://www.investopedia.com/thmb/H1dZPPjW6JWYj5Q_CpJZrieOeVM=/7284x4723/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-981748796-dc802f776d104837b9254ea4dea29a55.jpg" width="7284" height="4723" data-srcset="https://www.investopedia.com/thmb/LNllFT4AitmNZixy_5vkPPqadG0=/150x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-981748796-dc802f776d104837b9254ea4dea29a55.jpg 150w, https://www.investopedia.com/thmb/lISATtFNOYx6Y1oToaxYeasi4SU=/200x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-981748796-dc802f776d104837b9254ea4dea29a55.jpg 200w, https://www.investopedia.com/thmb/7TmKLppl_Pq7SNcGuCV_p8P0PEo=/250x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-981748796-dc802f776d104837b9254ea4dea29a55.jpg 250w, https://www.investopedia.com/thmb/XHQPZp29EMvfKPB2wRDRmHPtKy4=/302x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-981748796-dc802f776d104837b9254ea4dea29a55.jpg 302w" data-sizes="(min-width: 1280px) 300px, (min-width: 800px) calc(25vw - 1.25rem), (min-width: 640px) calc(33vw - 2rem), calc(50vw - 1.125rem)" alt="Woman working at computer" class="lazyload card__img universal-image__image" /> <noscript> <img src="https://www.investopedia.com/thmb/H1dZPPjW6JWYj5Q_CpJZrieOeVM=/7284x4723/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-981748796-dc802f776d104837b9254ea4dea29a55.jpg" width="7284" height="4723" class="img--noscript card__img universal-image__image" srcset="https://www.investopedia.com/thmb/LNllFT4AitmNZixy_5vkPPqadG0=/150x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-981748796-dc802f776d104837b9254ea4dea29a55.jpg 150w, https://www.investopedia.com/thmb/lISATtFNOYx6Y1oToaxYeasi4SU=/200x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-981748796-dc802f776d104837b9254ea4dea29a55.jpg 200w, https://www.investopedia.com/thmb/7TmKLppl_Pq7SNcGuCV_p8P0PEo=/250x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-981748796-dc802f776d104837b9254ea4dea29a55.jpg 250w, https://www.investopedia.com/thmb/XHQPZp29EMvfKPB2wRDRmHPtKy4=/302x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-981748796-dc802f776d104837b9254ea4dea29a55.jpg 302w" sizes="(min-width: 1280px) 300px, (min-width: 800px) calc(25vw - 1.25rem), (min-width: 640px) calc(33vw - 2rem), calc(50vw - 1.125rem)" alt="Woman working at computer" /> </noscript></div> </div> <div class="card__content " data-tag="Personal Finance"> <div class="card__header"></div> <span class="card__title"><span class="card__title-text ">2024 Personal Finance Calendar</span></span> <div id="article-meta--simple_5-0" class="comp article-meta--simple mntl-block" data-tracking-container="true"><div id="byline--simple_5-0" class="comp byline--simple mntl-block"><div id="byline--simple__pre-author-text_5-0" class="comp byline--simple__pre-author-text mntl-text-block">By</div> <div id="byline--simple__author_5-0" class="comp byline--simple__author mntl-text-block">Ward Williams</div></div> <div id="displayed-date_5-0" class="comp displayed-date"> <span class="displayed-date__date-text">Updated</span> <span class="displayed-date__date">Dec 19, 2023</span> </div></div> </div> </a></div> <div id="leaderboard2_1-0" class="comp leaderboard2 leaderboard--lazy leaderboard mm-ads-flexible-leaderboard mm-ads-flexible-ad mm-ads-gpt-adunit has-right-label visible-overflow js-lazy-ad gpt leaderboard dynamic"> <div id="leaderboard-flex-2" class="wrapper" data-type="leaderboard" data-pos="btf1" data-priority="3" data-sizes="[[728, 90], [970,90], [970, 250]]" data-rtb="true" data-wait-for-third-party="false" data-targeting="{}"></div> </div></div> <div id="mntl-sc-block_3-0" class="comp mntl-sc-block mntl-sc-block-faq mntl-block"><span class="heading-toc" id="toc-frequently-asked-questions-9236e7d6-f6dc-4604-a743-edb33286e5e7"></span> <div id="mntl-sc-block-faq__title_1-0" class="comp mntl-sc-block-faq__title mntl-text-block">Frequently Asked Questions</div> <ul id="mntl-sc-block-faq__content_1-0" class="comp mntl-sc-block-faq__content mntl-accordion js-accordion"> <li class="accordion__item js-accordion-item " data-ordinal="1"> <div tabindex="0" class="accordion__header js-accordion-trigger" id="mntl-accordion__item_1-0-section-0"> <svg class="icon icon-arrow-down accordion__icon" > <use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="#icon-arrow-down" href="#icon-arrow-down"></use> </svg> <span class="accordion__title">What Is personal finance?</span> </div><!--end accordion__header--> <div class="accordion__body"> <div id="mntl-accordion__content_1-0" class="comp mntl-accordion__content"> <div class="faq-accordion__item-answer"> <p>Personal finance is about <a href="https://www.investopedia.com/articles/personal-finance/100516/setting-financial-goals/" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="1">meeting your financial goals</a> and understanding all the routes to do this, from <a href="https://www.investopedia.com/how-to-save-money-4589942" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="2">saving</a> and investing, and keeping debt under control, to <a href="https://www.investopedia.com/updates/first-time-home-buyer/" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="3">buying a home</a> to <a href="https://www.investopedia.com/terms/r/retirement-planning.asp" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="4">planning for retirement</a>—and  coming up with a plan to accomplish these goals.It’s also the name of the industry that provides financial products to meet these goals.</p> </div> <div class="faq-accordion__feature-link"> <span>Learn More</span> <span class="loc feature-link"><a href="https://www.investopedia.com/terms/p/personalfinance.asp" rel="nocaes" id="accordion-content__feature-link_1-0" class="accordion-content__feature-link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">Personal Finance Definition</span></a> </span> </div> </div> </div><!--end accordion__body--> </li><!--end accordion__item--> <li class="accordion__item js-accordion-item " data-ordinal="2"> <div tabindex="0" class="accordion__header js-accordion-trigger" id="mntl-accordion__item_2-0-section-1"> <svg class="icon icon-arrow-down accordion__icon" > <use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="#icon-arrow-down" href="#icon-arrow-down"></use> </svg> <span class="accordion__title">Why is personal finance important?</span> </div><!--end accordion__header--> <div class="accordion__body"> <div id="mntl-accordion__content_2-0" class="comp mntl-accordion__content"> <div class="faq-accordion__item-answer"> <p>Not getting control of your personal finances can leave you unprotected when a crisis comes along–whether it’s an illness, an <a href="https://www.investopedia.com/how-to-pay-your-bills-when-you-lose-your-job-4801711" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="1">unexpected job loss</a>, or the death of the family breadwinner. The pandemic that began in March 2020 showed all of these issues in sharp relief and showed the importance of <a href="https://www.investopedia.com/emergency-proof-your-finances-4800551" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="2">planning for emergencies</a>.</p> </div> <div class="faq-accordion__feature-link"> <span>Learn More</span> <span class="loc feature-link"><a href="https://www.investopedia.com/special-economic-impact-of-pandemics-4800597" rel="nocaes" id="accordion-content__feature-link_2-0" class="accordion-content__feature-link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">The Special Economic Impact of Pandemics</span></a> </span> </div> </div> </div><!--end accordion__body--> </li><!--end accordion__item--> <li class="accordion__item js-accordion-item " data-ordinal="3"> <div tabindex="0" class="accordion__header js-accordion-trigger" id="mntl-accordion__item_3-0-section-2"> <svg class="icon icon-arrow-down accordion__icon" > <use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="#icon-arrow-down" href="#icon-arrow-down"></use> </svg> <span class="accordion__title">Should I be managing my finances differently since COVID-19?</span> </div><!--end accordion__header--> <div class="accordion__body"> <div id="mntl-accordion__content_3-0" class="comp mntl-accordion__content"> <div class="faq-accordion__item-answer"> <p>What the pandemic showed is that people are a lot more secure if they have an <a href="https://www.investopedia.com/terms/e/emergency_fund.asp" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="1">emergency fund</a>, have l<a href="https://www.investopedia.com/terms/b/budget.asp" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="2">earned to budget</a> and have created a financial plan–one with a Plan B and Plan C. Those who haven’t done these things, should get busy doing them. It–and the war in Ukraine–are both wake-up calls that <a href="https://www.investopedia.com/timeline-of-stock-market-crashes-5217820" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="3">stock market crashes</a> can happen abruptly in a crisis and that everyone needs a <a href="https://www.investopedia.com/articles/investing/041415/investing-crisis-high-riskhigh-reward-strategy.asp" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="4">crisis investment plan</a>.<br/></p> </div> <div class="faq-accordion__feature-link"> <span>Learn More</span> <span class="loc feature-link"><a href="https://www.investopedia.com/how-covid-19-changed-our-saving-and-spending-habits-5184327" rel="nocaes" id="accordion-content__feature-link_3-0" class="accordion-content__feature-link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">How COVID-19 Has Changed How We Save and Spend</span></a> </span> </div> </div> </div><!--end accordion__body--> </li><!--end accordion__item--> <li class="accordion__item js-accordion-item " data-ordinal="4"> <div tabindex="0" class="accordion__header js-accordion-trigger" id="mntl-accordion__item_4-0-section-3"> <svg class="icon icon-arrow-down accordion__icon" > <use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="#icon-arrow-down" href="#icon-arrow-down"></use> </svg> <span class="accordion__title">How much liability insurance do I need for my car?</span> </div><!--end accordion__header--> <div class="accordion__body"> <div id="mntl-accordion__content_4-0" class="comp mntl-accordion__content"> <div class="faq-accordion__item-answer"> <p>For starters, you need to buy at least <a href="https://www.iii.org/automobile-financial-responsibility-laws-by-state" data-component="link" data-source="inlineLink" data-type="externalLink" data-ordinal="1">the minimum amount</a> for your state. The two types of liability coverage for an auto accident are bodily injury liability (for injury to other people) and property damage liability (for property damage). Bodily injury liability specifies  both a per-person liability and a total liability per accident. For any damage outside of that you will need to pay personally, unless you have an <a href="https://www.investopedia.com/terms/u/umbrella-insurance-policy.asp" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="2">umbrella insurance policy</a> to make up the difference.</p> </div> <div class="faq-accordion__feature-link"> <span>Learn More</span> <span class="loc feature-link"><a href="https://www.investopedia.com/liability-insurance-how-to-stay-protected-5088593" rel="nocaes" id="accordion-content__feature-link_4-0" class="accordion-content__feature-link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">Liability Insurance for Drivers: How Much Do You Need?</span></a> </span> </div> </div> </div><!--end accordion__body--> </li><!--end accordion__item--> <li class="accordion__item js-accordion-item " data-ordinal="5"> <div tabindex="0" class="accordion__header js-accordion-trigger" id="mntl-accordion__item_5-0-section-4"> <svg class="icon icon-arrow-down accordion__icon" > <use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="#icon-arrow-down" href="#icon-arrow-down"></use> </svg> <span class="accordion__title">Do you need a smartphone to handle your money today?</span> </div><!--end accordion__header--> <div class="accordion__body"> <div id="mntl-accordion__content_5-0" class="comp mntl-accordion__content"> <div class="faq-accordion__item-answer"> <p>It&#39;s certainly looking that way. 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So goes getting an <a href="https://www.investopedia.com/articles/personal-finance/010715/key-differences-between-uber-and-lyft.asp" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="2">Uber or Lyft</a>.</p> </div> <div class="faq-accordion__feature-link"> <span>Learn More</span> <span class="loc feature-link"><a href="https://www.investopedia.com/is-having-a-smartphone-a-requirement-in-2021-5190186" rel="nocaes" id="accordion-content__feature-link_5-0" class="accordion-content__feature-link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">Is Having a Smartphone a Requirement?</span></a> </span> </div> </div> </div><!--end accordion__body--> </li><!--end accordion__item--> <li class="accordion__item js-accordion-item " data-ordinal="6"> <div tabindex="0" class="accordion__header js-accordion-trigger" id="mntl-accordion__item_6-0-section-5"> <svg class="icon icon-arrow-down accordion__icon" > <use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="#icon-arrow-down" href="#icon-arrow-down"></use> </svg> <span class="accordion__title">How do I wire money to someone?</span> </div><!--end accordion__header--> <div class="accordion__body"> <div id="mntl-accordion__content_6-0" class="comp mntl-accordion__content"> <div class="faq-accordion__item-answer"> <p>If you need to move large amounts of money, a wire transfer–either bank to bank or via an agent such as Western Union–is the safest way to go. Expect to pay a fee and review the fine print before you agree to the transfer. It may take a few hours or days, depending on the details. Note that a wire transfer is different from an <a href="https://www.investopedia.com/terms/a/ach.asp" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="1">Automated Clearing House (ACH) transfer</a>. Those are used to pay bills or move money between linked accounts.</p> </div> <div class="faq-accordion__feature-link"> <span>Learn More</span> <span class="loc feature-link"><a href="https://www.investopedia.com/how-to-wire-money-5088001" rel="nocaes" id="accordion-content__feature-link_6-0" class="accordion-content__feature-link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">How to Wire Money</span></a> </span> </div> </div> </div><!--end accordion__body--> </li><!--end accordion__item--> </ul><!--end accordion --></div> <div id="mntl-sc-block_4-0" class="comp mntl-sc-block mntl-sc-block-keyterms mntl-block"><h3 id="mntl-sc-block-keyterms__title_1-0" class="comp mntl-sc-block-keyterms__title mntl-text-block">Key Terms</h3> <div id="mntl-sc-block-keyterms__nav_1-0" class="comp mntl-sc-block-keyterms__nav mntl-block" data-tracking-container="true"><button id="mntl-sc-block-keyterms__nav-item_1-0" class="comp mntl-sc-block-keyterms__nav-item mntl-button is-active" data-index="0"> Personal Finance </button> <button id="mntl-sc-block-keyterms__nav-item_2-0" class="comp mntl-sc-block-keyterms__nav-item mntl-button" data-index="1"> Google Stack </button> <button id="mntl-sc-block-keyterms__nav-item_3-0" class="comp mntl-sc-block-keyterms__nav-item mntl-button" data-index="2"> Roadside Assistance Insurance </button> <button id="mntl-sc-block-keyterms__nav-item_4-0" class="comp mntl-sc-block-keyterms__nav-item mntl-button" data-index="3"> Personal Financial Statement </button> <button id="mntl-sc-block-keyterms__nav-item_5-0" class="comp mntl-sc-block-keyterms__nav-item mntl-button" data-index="4"> Ticket to Work Program </button></div> <div id="mntl-sc-block-keyterms__carousel_1-0" class="comp mntl-sc-block-keyterms__carousel mntl-carousel--inline mntl-carousel mntl-carousel--inline mntl-carousel" data-use-placeholders="false" data-tracking-container="true" data-scroll-by-page="false" data-update-arrows-when-scrolling="false"> <div class="mntl-carousel__wrapper"> <div class="mntl-carousel__arrow mntl-carousel__arrow--left " data-click-tracked="true" role="button" aria-label="Present previous article"> <svg class="icon mntl-carousel__arrow-icon " > <use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="#mntl-carousel__arrow-icon" href="#mntl-carousel__arrow-icon"></use> </svg> </div> <ul class="loc carousel-items mntl-carousel__items"><li id="mntl-carousel__item_1-0" class="comp mntl-carousel__item mntl-block is-active" data-ordinal="0" data-contain-tooltips="true"><div id="mntl-carousel__card_1-0" class="comp mntl-carousel__card mntl-block carousel-card"><div id="carousel-card__title_1-0" class="comp carousel-card__title mntl-text-block">Personal Finance</div> <div id="carousel-card__body_1-0" class="comp carousel-card__body mntl-text-block"><p>Managing your money—including saving, investing, and setting financial goals—are all part of personal finance. So are areas like budgeting, retirement planning, and saving for your children’s college educations.</p></div> <div id="carousel-card__link-wrapper_1-0" class="comp carousel-card__link-wrapper mntl-block"><a href="https://www.investopedia.com/terms/p/personalfinance.asp" rel="nocaes" id="carousel-card__link_1-0" class="carousel-card__link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">Learn More</span></a></div></div></li> <li id="mntl-carousel__item_2-0" class="comp mntl-carousel__item mntl-block" data-ordinal="1" data-contain-tooltips="true"><div id="mntl-carousel__card_2-0" class="comp mntl-carousel__card mntl-block carousel-card"><div id="carousel-card__title_2-0" class="comp carousel-card__title mntl-text-block">Google Stack</div> <div id="carousel-card__body_2-0" class="comp carousel-card__body mntl-text-block"><p>This free document-scanning and filing app from Google photographs documents like bills and receipts, and stores them as pdfs. It’s only available for Android phones and tablets, not Apple products.</p></div> <div id="carousel-card__link-wrapper_2-0" class="comp carousel-card__link-wrapper mntl-block"><a href="https://www.investopedia.com/what-is-google-stack-5198591" rel="nocaes" id="carousel-card__link_2-0" class="carousel-card__link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">Learn More</span></a></div></div></li> <li id="mntl-carousel__item_3-0" class="comp mntl-carousel__item mntl-block" data-ordinal="2" data-contain-tooltips="true"><div id="mntl-carousel__card_3-0" class="comp mntl-carousel__card mntl-block carousel-card"><div id="carousel-card__title_3-0" class="comp carousel-card__title mntl-text-block">Roadside Assistance Insurance</div> <div id="carousel-card__body_3-0" class="comp carousel-card__body mntl-text-block"><p>This is the plan you need when your car breaks down on the road. You can get this coverage from your auto insurance company, or from AAA or your credit card. Even your cellphone provider might offer  it. Your vehicle’s age and mileage might be an issue on the coverage you can get, and there will likely be limits on how far you can be towed and how many service calls you get per year. Your car warranty may also cover assistance for a newer car.</p></div> <div id="carousel-card__link-wrapper_3-0" class="comp carousel-card__link-wrapper mntl-block"><a href="https://www.investopedia.com/roadside-assistance-insurance-5088592" rel="nocaes" id="carousel-card__link_3-0" class="carousel-card__link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">Learn More</span></a></div></div></li> <li id="mntl-carousel__item_4-0" class="comp mntl-carousel__item mntl-block" data-ordinal="3" data-contain-tooltips="true"><div id="mntl-carousel__card_4-0" class="comp mntl-carousel__card mntl-block carousel-card"><div id="carousel-card__title_4-0" class="comp carousel-card__title mntl-text-block">Personal Financial Statement</div> <div id="carousel-card__body_4-0" class="comp carousel-card__body mntl-text-block"><p>Your assets and liabilities–summarized on a document or spreadsheet–are what constitute a personal financial statement. Subtracting your liabilities.  from your assets will yield your net worth. You will need a personal financial statement if you are applying for a mortgage or other loan. It will also let you track your personal worth over time. Interestingly, personal property like jewelry and antiques aren’t generally included in a personal financial statement.</p></div> <div id="carousel-card__link-wrapper_4-0" class="comp carousel-card__link-wrapper mntl-block"><a href="https://www.investopedia.com/terms/p/personal-financial-statement.asp" rel="nocaes" id="carousel-card__link_4-0" class="carousel-card__link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">Learn More</span></a></div></div></li> <li id="mntl-carousel__item_5-0" class="comp mntl-carousel__item mntl-block" data-ordinal="4" data-contain-tooltips="true"><div id="mntl-carousel__card_5-0" class="comp mntl-carousel__card mntl-block carousel-card"><div id="carousel-card__title_5-0" class="comp carousel-card__title mntl-text-block">Ticket to Work Program</div> <div id="carousel-card__body_5-0" class="comp carousel-card__body mntl-text-block"><p>People with disabilities who hope to return to work often worry that they will lose their Medicare disability coverage. This government program allows them to keep their coverage for at least 8½ years. Ticket Holders can receive employment and other services from qualified service providers.</p></div> <div id="carousel-card__link-wrapper_5-0" class="comp carousel-card__link-wrapper mntl-block"><a href="https://www.investopedia.com/ticket-to-work-program-5218409" rel="nocaes" id="carousel-card__link_5-0" class="carousel-card__link mntl-text-link " data-tracking-container="true" ><span class="link__wrapper">Learn More</span></a></div></div></li> </ul> <div class="mntl-carousel__arrow mntl-carousel__arrow--right " data-click-tracked="true" role="button" aria-label="Present next article"> <svg class="icon mntl-carousel__arrow-icon " > <use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="#mntl-carousel__arrow-icon" href="#mntl-carousel__arrow-icon"></use> </svg> </div> </div> </div></div></div><div class="loc fixedContent"><div id="mntl-document-spotlight_1-0" class="comp mntl-document-spotlight mntl-document-card-list mntl-card-list mntl-block" data-chunk="36"><a 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1.25rem), (min-width: 640px) calc(33vw - 2rem), calc(50vw - 1.125rem)" alt="Loan" class="lazyload card__img universal-image__image" /> <noscript> <img src="https://www.investopedia.com/thmb/drFc2V37IxKFxT55Z4zl2Oe0UTw=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Term-Definitions_loan.asp-b51fa1e26728403dbe6bddb3ff14ea71.jpg" width="1500" height="1000" class="img--noscript card__img universal-image__image" srcset="https://www.investopedia.com/thmb/0YwNb4mhT0w1vJACMFbb34cdhcQ=/150x0/filters:no_upscale():max_bytes(150000):strip_icc()/Term-Definitions_loan.asp-b51fa1e26728403dbe6bddb3ff14ea71.jpg 150w, https://www.investopedia.com/thmb/5LAD-o6RbMK7lFq32tGDoKLCwAE=/200x0/filters:no_upscale():max_bytes(150000):strip_icc()/Term-Definitions_loan.asp-b51fa1e26728403dbe6bddb3ff14ea71.jpg 200w, https://www.investopedia.com/thmb/3Ls0PE1KEtaN-sq3bKTtjGLLEtg=/250x0/filters:no_upscale():max_bytes(150000):strip_icc()/Term-Definitions_loan.asp-b51fa1e26728403dbe6bddb3ff14ea71.jpg 250w, https://www.investopedia.com/thmb/s6w0ubyP3-7wjcF1gKBV9ESlSu8=/302x0/filters:no_upscale():max_bytes(150000):strip_icc()/Term-Definitions_loan.asp-b51fa1e26728403dbe6bddb3ff14ea71.jpg 302w" sizes="(min-width: 1280px) 300px, (min-width: 800px) calc(25vw - 1.25rem), (min-width: 640px) calc(33vw - 2rem), calc(50vw - 1.125rem)" alt="Loan" /> </noscript></div> </div> <div class="card__content " data-tag="Loans"> <div class="card__header"></div> <span class="card__title"><span class="card__title-text ">What Is a Loan, How Does It Work, Types, and Tips on Getting One</span></span> <div id="article-meta--simple_63-0" class="comp article-meta--simple mntl-block" data-tracking-container="true"><div id="byline--simple_63-0" class="comp byline--simple mntl-block"><div id="byline--simple__pre-author-text_63-0" class="comp byline--simple__pre-author-text mntl-text-block">By</div> <div id="byline--simple__author_63-0" class="comp byline--simple__author mntl-text-block">Julia Kagan</div></div> <div id="displayed-date_63-0" class="comp displayed-date"> <span class="displayed-date__date-text">Updated</span> <span class="displayed-date__date">Feb 28, 2024</span> </div></div> </div> </a> <a id="mntl-card-list-items_64-0" class="comp mntl-card-list-items mntl-document-card mntl-card card card--no-image" data-doc-id="5114094" data-tax-levels href="https://www.investopedia.com/simple-loan-calculator-5114094" data-ordinal="54" data-cta="Read Now ▸"> <div class="loc card__top"><div class="card__media mntl-universal-image universal-image__container"><img data-src="https://www.investopedia.com/thmb/D_SRNFnWHmLEkNenL3IJ_Y-lPEk=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-514411129-e0f94ce833de4f1a8cf7055f1cde3c5c.jpg" width="2121" height="1414" data-srcset="https://www.investopedia.com/thmb/BDrjwmHFexlJijC47UsO0P6dXpM=/150x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-514411129-e0f94ce833de4f1a8cf7055f1cde3c5c.jpg 150w, https://www.investopedia.com/thmb/xCVA29kI0o5G2ywt-fh3N7M2M2I=/200x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-514411129-e0f94ce833de4f1a8cf7055f1cde3c5c.jpg 200w, https://www.investopedia.com/thmb/hhNZqIsPb_UCEWKcZu3RlOUkBRU=/250x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-514411129-e0f94ce833de4f1a8cf7055f1cde3c5c.jpg 250w, https://www.investopedia.com/thmb/dLL_bX0qw5e6rHgrFk1nj1jwcbU=/302x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-514411129-e0f94ce833de4f1a8cf7055f1cde3c5c.jpg 302w" data-sizes="(min-width: 1280px) 300px, (min-width: 800px) calc(25vw - 1.25rem), (min-width: 640px) calc(33vw - 2rem), calc(50vw - 1.125rem)" alt="Young man at laptop, calculating loan costs" class="lazyload card__img universal-image__image" /> <noscript> <img src="https://www.investopedia.com/thmb/D_SRNFnWHmLEkNenL3IJ_Y-lPEk=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-514411129-e0f94ce833de4f1a8cf7055f1cde3c5c.jpg" width="2121" height="1414" class="img--noscript card__img universal-image__image" srcset="https://www.investopedia.com/thmb/BDrjwmHFexlJijC47UsO0P6dXpM=/150x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-514411129-e0f94ce833de4f1a8cf7055f1cde3c5c.jpg 150w, https://www.investopedia.com/thmb/xCVA29kI0o5G2ywt-fh3N7M2M2I=/200x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-514411129-e0f94ce833de4f1a8cf7055f1cde3c5c.jpg 200w, https://www.investopedia.com/thmb/hhNZqIsPb_UCEWKcZu3RlOUkBRU=/250x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-514411129-e0f94ce833de4f1a8cf7055f1cde3c5c.jpg 250w, https://www.investopedia.com/thmb/dLL_bX0qw5e6rHgrFk1nj1jwcbU=/302x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-514411129-e0f94ce833de4f1a8cf7055f1cde3c5c.jpg 302w" sizes="(min-width: 1280px) 300px, (min-width: 800px) calc(25vw - 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