Aja McClanahan

The average person may have different reasons for calculating their net worth. They may want to know this figure for estate planning, to create a personal financial statement for lending purposes or to be aware of their numbers so they can improve them.
No matter the reason, it's important to understand how to arrive at this number accurately – and which assets and liabilities to include in this calculation. This quick guide will provide a few tips on what you should and should not include wh...

Figuring out how you'll sustain your lifestyle in retirement can feel like a shot in the dark. However, there are ways to determine how much you should aim to save based on your preretirement spending.
One rule of thumb, known as the $1,000 per month rule, could steer you in the right direction for a comfortable retirement.
According to the $1,000 per month rule, retirees can receive $1,000 per month if they withdraw 5% annually for every $240,000 they have set aside. For example, if you aim ...

Key Takeaways:
Create a budget to track monthly expenses and understand essential financial needs for a shorter month with less income.
If possible, explore options to bring in additional income or negotiate with service providers to modify payment due dates.
Adjust your discretionary spending to match reduced income during shorter months.
Build an emergency fund to cushion income fluctuations.
February is one of those odd months that many don't know what to do with. From Groundhog Day to Val...

Consumer sentiment is an aggregate measure of how individuals feel about their finances and the economy as a whole. Also called consumer confidence, this economic indicator can serve as a barometer for future consumer behavior – particularly spending and saving patterns – which, in turn, influence broader economic trends.
For instance, when consumer confidence is higher, people tend to be more optimistic, which is reflected in their spending and other financial behaviors. Gauging prevailing c...

During the election, President Donald Trump made clear his intentions to introduce tariffs to major international trade partners such as Mexico, Canada and China.
He's making good on his promises, including starting to take punitive action against countries that have not stemmed the influx of fentanyl and people immigrating illegally into the U.S.
On Jan. 30, the administration announced that the U.S. may be imposing a 25% tariff on imports of Mexican and Canadian products starting as early a...

Key Takeaways
Wage garnishment is a legal process initiated by the IRS to collect unpaid taxes directly from your paycheck.
To stop wage garnishment, promptly contact the IRS to discuss your options.
Seeking the assistance of a tax professional can help you navigate this process and potentially remove or reduce the IRS levy against your wages.
When the IRS comes knocking, it's rarely a pleasant experience. But when wage garnishment starts, it can be a total pain. Suddenly, your paycheck is lo...

Capital gains taxes are levied on the profit from selling assets such as stocks, bonds, precious metals, cryptocurrencies, real estate and other property.
Though many factors determine your tax liability when selling an asset, most investors agree that the lower the tax liability, the better. However, it's also common for government entities to propose tax increases to raise revenues and balance their budgets.
One of the most pressing issues in this election cycle is the Biden-Harris administ...

Key Takeaways
It's crucial to address your mental and emotional health to gain financial resilience.
The first step toward creating a financial recovery plan is assessing your current financial situation.
Remember to trust the process and celebrate the small victories along the way.
At one time or another, many people experience a major life event that disrupts their incomes and potentially throws them into financial turmoil.
Whether it's a job loss, divorce, illness, the death of a loved one...

Valentine's Day is often seen as a celebration of love and affection, but it also presents a common dilemma for many couples – how to mark the occasion and, more importantly, how much to spend.
While some view the holiday as a special opportunity to express their feelings with meaningful gestures or gifts, others regard it as a commercialized "Hallmark holiday," designed more for marketing than romance.
If you're not quite settled on the issue, perhaps knowing about how others celebrate this ...

Key Takeaways
Tax avoidance is the legal use of tax laws to minimize tax liability and maximize savings.
Tax fraud involves illegal activities, such as falsifying income or deductions, to evade paying taxes.
Tax avoidance strategies are permissible under the law and often involve proper planning and deductions.
Tax fraud can lead to severe penalties, including fines and imprisonment.
The 2025 tax season has already begun, and millions of individual and business taxpayers will soon file their ...