Personal Finance from a 29 year-old perspective

Personal Finance… you mean, how much money in my bank account? Oh wait. How I manage my bills. Ah. Got it! This is exactly what I think of when you ask my 29 year-old self what personal finance is.

Then I looked up the definition:

according to wikipedia:

Personal finance is the financial management which an individual or a family unit is required to do to obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.[1] When planning personal finances the individual would consider the suitability to his or her needs of a range of banking products (checkingsavings accounts,credit cards and consumer loans) or investment (stock marketbondsmutual funds) and insurance (life insurancehealth insurance,disability insurance) products or participation and monitoring of individual- or employer-sponsored retirement planssocial security benefits, and income tax management.

I guess I was kind of right..

Little did I know, there is SO much more to it then I thought. You know, I’m just lining up with the rest of the 30-somethings that are deep into their IRA, ROTH or mutual funds. Oh ya. I’m totally ready for retirement. Did I mention that I am collecting interest on my high earning interest savings account also? Yep. I’m pretty dang smart with my money.

The truth is, I haven’t been doing any of those things.

My husband and I didn’t know anything about high interest savings accounts. We earn a whole $0.05 on our savings per year. Mutual funds? We do have an account that gets $50 per month deposited but we kept cashing it out when we thought there was too much there. (secretly, we are money hoarders who prefer to SEE our money each month) its just like a savings account, right?

IRA? Nope, knew nothing about that either. My husband has a 401K through his job.. I thought that was all we needed? Being an online entrepreneur and almost 30.. who wants to think about retirement? It’s like 35 years from now… who cares?

This is personal finance in my eyes.