TessMore Finance Blog

Mutual funds are an important part of investing in the stock market. While you can buy and sell individual stocks directly, that can come with a higher risk (and a higher potential reward). When you buy and sell shares in one individual stock, your performance is tied solely to the performance of that stock and company. In the absolute worst-case scenario, if you invest all of your money in one company’s stock, and the stock price goes to $0, you will end up losing everything. The good news for investors is that mutual funds can hopefully be a way to reduce your risk and still capture a good chunk of the potential investment return. In this article, we’ll talk about what mutual funds are, how to select the right mutual fund for you and how to get started.  Active vs. Passive Mutual Funds Before talking about why you should consider investing in mutual funds , it’s a good idea to take a step back and understand that there are actually two main kinds of mutual funds: Active mutual f

In the article we will fFundamentally break down how banks make money. , Bbanks earn their money by lending the money you deposit to other people.  For example, if you deposit $1,000, a Big Bank pays you a small amount in interest to hold on to that money, then turns around and lends it out at a much higher percent for a home loan.  Assuming that everyone repays their loans in full, the bank makes a huge return on their money for simple arbitrage. But here’s how they really make tons more money. Traditionally, banks make money from the difference between the interest rate they pay for deposits and the interest rate they receive on the loans they make. They also earn money from customer fees and interest on the securities they hold. How Banks ACTUALLY Make Money – The Truth FEES, FEES, FEES. In 2017, banks made more than $34 billion from overdraft fees alone. For example, if you’re using a debit card and accidentally buy something for more money than you have in your checking acco

In this article we’re going to cover how many savings accounts you can have.  On paper it seems like a good idea to have multiple accounts, especially ones with higher rates. However, it’s usually a waste of time to be chasing the next highest savings percent rate. Multiple Savings Accounts There’s no limit to how many savings accounts you can have open. Typically, banks will allow you to open as many savings accounts as you want to. I can’t think of a reason why you would need more than one savings account.  Do me a favor: If your bank account offers one rate and another bank starts offering a slightly higher rate, don’t change accounts. Half the time, those rates are simply introductory teaser rates that will drop after six months.  I’d rather take a slightly lower interest rate if it’s at a bank I can trust to give me great service over the long term.  But there are a lot of dorks who spend every waking hour online digging up the best interest rate and switching to it immedi

In this article, we will cover bank fees, why you get them, how to avoid them, & how to negotiate them. It’s important to know how to properly optimize your accounts or you’ll end up paying fees & bank charges that can easily be avoided. One of the biggest secrets to avoiding fees and properly using your account is talking to an actual customer service rep, either in person or on the phone. Don’t Run Away Your Bank Fees (Fix Them) Yes, nerds, you might actually have to pick up the phone. For some reason, half of my friends are afraid of talking to people on the phone.  I have a friend who recently lost his bank password and, for security reasons, had to call the bank to prove who he was. He turned into a Stockholm syndrome victim in front of my eyes, muttering, “It’s not that important. They’re right. I’ll just wait until I go into the bank” over and over. He didn’t get his password for four months! What the hell is wrong with people?  You may not like to talk on the phon

In this article we’re going to cover the types of bank accounts, which ones you should have, and what each one can do for you. The two main types of bank accounts are your checking and savings accounts. These two are the main types and are essential to a healthy financial life. It’s important to know how to set them up and how to make them work for you to get the most out of them. Checking Accounts Your checking account is the backbone of your financial system. It’s where your money will first go before it’s “filtered” to different parts of your system, like your savings account, your investing account, and your guilt-free spending. That’s why I believe in picking the best account, then moving on. As you know, checking accounts let you deposit money and withdraw money using debit cards, checks, and online transfers. I think of my checking account like an email inbox: All my money goes in my checking account, and then I regularly apportion it out to appropriate accounts, like savin

We know that raising kids is expensive — but just how expensive is it? According to a 2015 U.S. Department of Agriculture (USDA) study, the average cost of raising a child from birth until the age of 17 is $233,610 . This estimate is based on a middle-income family of four and excludes any college costs. Taking into account the inflation in the economy, you can expect to spend $292,017 raising a child in 2022, or more considering child care expenses are rising rapidly.  A recent study done by the Brookings Institution for the Wall Street Journal found that due to unprecedented inflation rates, parents can expect to spend at least $300,000 raising a child born in 2015 until age 17. While that may sound overwhelming, we’ve broken down eight major expenses for prospective parents to consider and provided some tips on how to prepare mentally and financially for your child’s future.  Costs of Raising a Child in 2022 Housing, food, and child care take up the largest percentage of chi

Most people don’t get into serious credit card debt overnight. Instead, things go wrong little by little until they realize they’ve got a serious problem.  The first credit card mistake is not paying attention to your cards and balances. Your debt can turn into something serious and not so small. If you’ve ended up in credit card debt, it can seem overwhelming. Even though it can be painful, be sure to find all your debt and track it. The good news is that credit card debt is almost always manageable if you have a plan and take disciplined steps to reduce it. Credit Card Traps To Avoid Seventy-five percent of Americans claim they don’t make major purchases on their credit card unless they can pay it off immediately. Yet from looking at actual spending behaviors, over 70 percent of Americans carry a balance, and fewer than half are willing to reveal their credit card debt to a friend.   Those numbers are an indication that American consumers are ashamed of their debt levels, says

In this article, we will look at some concrete steps you can take to find out all the debt you owe and get a plan to pay it off. Debt can come in many forms so it’s important to know all of the debt you have, whatever types they may be. Next important thing is to have a plan. Without a plan to pay it off it’s possible that your debt will only get worse and you’ll continue to be stuck paying interest forever. Figure out how much debt you owe You wouldn’t believe how many people don’t do this and continue blindly paying off any bills that come in with no strategic plan. This is exactly what the credit card companies want, because you’re essentially just dumping money into their pockets.  You can’t make a plan to pay off your debt until you know exactly how much you owe. It might be painful to learn the truth, but you have to bite the bullet. Then you’ll see that it’s not hard to end this bad habit.  In fact, you can get the credit card companies to help you: Look at the back of you

Do you track your net worth and watch how it changes over time? Whether it’s for fun, to compare your financial progress to others, or to help make early retirement plans, there are tools that can make your job easier. Many different apps offer features that not only calculate and track your net worth but also help you budget and manage your investment accounts. The premium ones cost money, but there are free apps you can use, too. To help you choose the right net worth calculator, I’ve compiled a list of the best ones available today. However, before we get to the list, what is a net worth calculator anyways? Table of Contents What are Net Worth Calculators? Best Net Worth Calculators Personal Capital Kubera NewRetirement Topia Tiller YNAB Mint Quicken Manual Budget Spreadsheets How Do Net Worth Calculators Work? Why Are Net Worth Calculators Important? How Do You Calculate Net Worth? Final Thoughts What are Net Worth Calculators? A net worth calculator co