Financial Fitness with Alan Akina - Good Money, Bad Money

Most of us don't ever think about our money as either good money or bad money.

That's part of the financial fitness tip of this week, This Morning with Hawaii money expert Alan Akina.

Good morning. Today we're going to take a look at all of our financial accounts that earn us interest, and we call that good money. We also want to look at all of our financial accounts that we pay interest on. We call that bad money. So first, the good money, our checking accounts. We make nothing on that. Savings accounts, less than 1%. CDs is about 2 to 3%. And our retirement accounts, IRAs, 401s, average about 8%. Now on the other side, the bad money. Credit cards, 14% or higher. Car loans, 6%. Personal loans, right around 8%. And the mortgages, right around that 5 to 6% mark. What this tells us is that our good money is only making us 3% on average, but our bad money is costing us 9% or more. Knowing where you stand is half the battle, so here's what I want you to do. Take personal inventory of all of your accounts. Now you get a free good money, bad money worksheet on the Wake Up Today webpage at khon2.com. For Wake Up Today, I'm Alan Akina with your financial fitness tip of the week. See you next time.