Archive for the ‘Smart Money Ideas’ Category
Sunday, March 14th, 2010
Every working man and woman is entitled to a retirement that is secure and comfortable. Saving and planning for retirement is not necessarily an easy process however because we are living longer and healthier lives in general, which means we need more money to survive retirement than ever before. If you want to learn how to plan for a healthy, comfortable and secure retirement then you need to begin planning wisely using a blueprint similar to the one outlined below:
What do you plan to do in your retirement?
- Save early and often. –
The sooner that you begin to save money, the longer the amount of time you will have for those funds to grow. By putting compounding to use, you can make gains every year that will add on to the gains of the prior year, and so on and so forth. This can really add up, fueling the growth of your retirement fund.
- Set realistic and attainable goals. –
Do not use rules of thumb to project your retirement expenses, because they are based upon your needs and not the needs of others before you. What type of lifestyle do you want to live when you retire? Figure out the expenses accordingly and use these expenses to formulate how much money is needed to supplement social security and other income sources during retirement.
- Save using a 401(k). –
This is one of the best and one of the easiest ways that you can save money. Making contributions towards a 401(k) plan can provide you with immediate tax deductions, matched contributions from your employer, and even a tax deferment on the growth that your retirement savings accrues. This is absolutely excellent advice for anyone who ever wondered how to plan for retirement.
- Utilize IRAs for retirement savings with tax advantages. –
IRAs provide you with large tax breaks much in the same way that 401(k)s can. They offer two different types of tax breaks, one which provides growth that is tax deferred, and one that provides tax free growth but doesn’t allow for deductible contributions the way that traditional IRAs can. Roth IRAs do not allow deductible contributions, which mean withdrawals do not require you to owe any taxes in the way that traditional IRAs do.
- Make wise asset allocation moves. –
This means that your portfolio should be divided between stocks and bonds in a wise manner so that you can make a strong and powerful impact on any of the long term investment returns that you have. Stocks are the best option for stable and long term methods of growth, while bonds work well both in the short term and long term. Still, you should not rely too heavily on bonds when planning for retirement. If you want to stretch your nest egg’s life out to the best of its capabilities, you absolutely must make tax efficient withdrawals.
Photo Credits: 1
Originally posted 2008-11-14 05:57:29. Republished by Blog Post Promoter
Related Articles -
Do You Ask Yourself, How Do I Plan for Retirement? /caption] Don't you think that every working man and working woman is entitled to enjoying a secure and comfortable retirement once they are no longer working? Due to the fact that we have taken so many strides in health care and in medicine, many people are living longer and healthier...... -
Teach Your Teen About Saving Money One of the biggest reasons why having a teenage child can be difficult is because teenagers tend to spend money easily and freely without any real regard for what goes into earning that money in the first place. Teenagers tend to spend a great deal of money on clothes, shoes,...... -
Setting Goals for Good Personal Finance /caption] Setting goals is an important part of your personal finance plan. Goals can be divided into four unique categories that are relatively general in nature. These categories are short term goals, intermediate term goals, long term goals and life goals. Short Term Personal Finance Goals - These short term...... -
Teach Teens to Save Money /caption] One of the biggest reasons why having a teenage child can be difficult is because teenagers tend to spend money easily and freely without any real regard for what goes into earning that money in the first place. Teenagers tend to spend a great deal of money on clothes,...... -
Personal Budget Planning /caption] Personal budget planning is an important part of keeping a handle on your finances. Because there is so much turmoil in today's economy, maintaining a healthy personal budget is more vital than ever. Crafting a personal budget begins with determining how money comes in, and how money goes out,......
Related Sites -
Baby Bonds or Lazy Man's Trust Fund It seems like Baby Bonds are in the news. I've been reading at Dollar Roller and Money Smart Life. The idea seems to be that the government would open a $5,000 account for every newborn baby in the US. The money would grow and mature at the child's 18th birthday....... - Your Tax Refund Introduction to I Bonds Regular readers know that I am a fan of I-Bonds and TIPS for retirement savings. If you are at all concerned about future inflation (and you should be), you should own TIPS and/or I-Bonds as part of a diversified portfolio. This year, the federal government is making it easy for......
- Making Your Maximum Annual IRA Contribution at Tax Time RateLadder made a guest post on LazyMan's blog on a strategy he is using to fund his Simplified Employee Pension Plan (SEP-IRA). A SEP-IRA is a retirement plan for individuals that are self-employed, and thus do not have an employer sponsored plan (such as a 401k or 403b). Basically, he......
- How to Plan for Tax Free Retirement Income Many experts tell us that when we retire, it can be important to have several options in income sources, some of which are tax free. Tax rates are going up for a lot of us, starting with the expiration of the Bush tax cuts at the end of 2010. Now......
- Year End Retirement Planning Steps What will a typical baby boomer be doing the last week of the year to advance toward a goal of a successful retirement? I don't know how typical we are but here is a list of steps I will be taking this week, in no particular order. 1. Assess Tax......
Tags: 401 k, amount of time, attainable goals, blueprint, contri, deductible contributions, how much money, income sources, lifestyle, man and woman, retirement expenses, retirement fund, retirement savings, roth iras, rules of thumb, Social Security, tax deductions, traditional iras, working man
Posted in 401K Retirement, Loanio, Money, Plan for Retirement, Savings, Smart Money Ideas | No Comments »
Saturday, March 13th, 2010
Create a budget.
Personal budget planning is absolutely crucial if you want to build personal wealth and overcome things like the credit crunch and the current problems that the economy is experiencing. The word “Budget” is one that worries a lot of people because it often seems more like a hassle and a chore than anything else, but there are a lot of easy things that you can do in order to create a personal budget planning process that is beneficial to you and your entire family and household. Here are a set of basic steps that will help you build a personal budget that is going to work well for you and your household as a whole
- Begin the personal budget planning process by collecting at least three months worth of bills, expense statements and receipts.
Look at your bank statements, cash transactions and any receipts that you have saved. Look through your credit card statements as well. What did you purchase? What bills did you pay? Were there any fees that you paid? Are there any habits in your monthly bank statements that are worth noting? Are you spending basically the same amount of money every month? Are there expenses that are the same or similar every month? Answering these questions will give you a good foundation for your personal budget planning.
- Now that you have a firm handle on your expenses, the next step is to gather documents relating to your income.
If you are on salary, put together your paychecks and make sure that you are getting the same amount every month. Otherwise you should gather between three and six months of income statements to get an average amount that you earn in a single month.
- Now that you have a good idea of both your expenses and your incomes, the next thing to do is to compare them to see how much money is left.
This may seem like a frightening step, but it is important if you want to know how much discretionary income you have every single month.
- Now that you know how much money exists at the end of the month on average, you can start looking at what expenses can be eliminated or reduced.
Review your expenses carefully to find out how you can leverage additional income on a monthly basis, because this extra money can be used to reduce debts and begin to save money for the future.
Now that your basic budget is outlined, you can begin to work on prioritizing your debts by reviewing interest rates and listing your debts beginning with the highest interest rate and working down. Once your budget and discretionary income have been outlined you can begin to plan for your financial future by outlining both short term and long term goals in your personal financial life. The last step is simply to exercise patience and to stay the course for as long as you can. Personal budget planning is not going to become a habit as quickly as over night, but it will eventually become a habit if you practice it regularly.
Photo Credits: 1
Originally posted 2008-11-13 05:58:04. Republished by Blog Post Promoter
Related Articles -
Should You Be Worried About the Economy? [/caption] If you follow the news, chances are the state of the economy may have you a little concerned. Bad news is rampant, the housing market is shaky and doom appears to be around every corner. While there are some definite problems with the economy right now, that doesn’t necessarily...... -
Defining Your Budget and Crafting Your Financial Future A budget or spending plan is a specific money management tool that is designed to put you in control of your spending, keeping you out of credit trouble and other financial trouble. Your budget is vital because it is your personal plan for spending the income that you have, making...... -
Do You Avoid Personal Budget Planning? /caption] One of the things that can make your life easier, even though it sounds complicated, is personal budget planning. If you're one of the fortunate few who never has to worry about running out of money no matter how many extra expenses might crop up or how much extra...... -
When Disaster Strikes [/caption] As Hurricane Ike took aim for the Gulf Coast, the financial markets reacted much in the way that they were expected to. Gas prices jumped to $5 a gallon along the gulf coast, and many expected the price jump to go nationwide, particularly if the hurricane caused damage to...... -
Tips for Managing Your Money Wisely With a few tips for managing money wisely, you should have no problems putting together a good working budget and learning how to manage your money. Here are some excellent tips for managing money wisely that will give you a great platform for getting started. /caption] 1 - The first......
Related Sites - Guest Post - Save to Live, Don’t Live to Save—Saving Money Ideas The following article is a guest post by David of Your Finances 101. David has been a frequent commenter here on Not Made of Money and has just published his first book Don’t Be A Mule: A Common-sense Guide to Saving More, Spending Less, and Generating Extra Income in Your......
-
It's Time for Some Personal Budget Planning Tips Personal budget planning is an important part of keeping a handle on your finances. Because there is so much turmoil in today's economy, maintaining a healthy personal budget is more vital than ever. Crafting a personal budget begins with determining how money comes in, and how money goes out, but...... - Weekend Personal Finance Links (Catching Up Edition) After the last week in Aruba, I'm exhausted. It's funny how vacation just seems to make you more tired. Maybe it wasn't the vacation, but rather the trip from Aruba through Atlanta to Florida to see my friend get married. Except that I got a call from her 3 hours......
- How to have a successful budget meeting with your spouse Glblguy is the author of Gather Little By Little , a Christian personal finance blog focused on growing wealth using common sense biblical practices and based on the wisdom found in Proverbs 13:11 - "He who gathers money little by little makes it grow." I encourage you to subscribe to......
- Paying Too Much For Gas? Tax Yourself! According to GasBuddy, the average gallon of unleaded gasoline in the United States is $1.86. This is a far cry from $4.00 we were seeing just last summer. The price per gallon of gas was $2.76 even just a year ago today. The price of gas definitely put a strain......
Tags: amount of money, bank statements, cash transactions, credit card statements, credit crunch, discretionary income, economy, expense statements, good foundation, hassle, household, income statements, incomes, least three months, paychecks, personal budget, personal wealth, receipts, salary, six months
Posted in Personal Budget Planning, Personal Finance, Smart Money Ideas | No Comments »
Sunday, March 7th, 2010
Stockpiling can adversely affect prices.
As Hurricane Ike took aim for the Gulf Coast, the financial markets reacted much in the way that they were expected to. Gas prices jumped to $5 a gallon along the gulf coast, and many expected the price jump to go nationwide, particularly if the hurricane caused damage to any offshore oil rigs. Since the industry in the area was still reeling from the effects of Hurricane Katrina, it comes as no shock that the worst case scenario was trotted out with the approach of Ike.
But, what does this mean for the average consumer? How badly will prices be affected by another adverse event? We’ve seen the economic damage caused by Hurricane Katrina, so we have some form of basis to go on as to what to expect, but that does not mean that panic is necessary. There are a few things the average household can do to shore up their own defenses against natural disasters, whether they hit right at home, or thousands of miles away.
Panic is an ugly thing, and as people raced to the pumps to fill up their tanks, it is apparent that fears over even higher gas prices are running rampant. It is important to stock up on necessities such as fuel, but going into a panic mode over it is certainly counterproductive. Preparation is very important but the key is remaining calm. Panic serves only to weaken economic situations, and by looking at the issues rationally, you can rise above this problem and come out on top.
If you have extra gas containers, there is nothing wrong with stocking up, but hording is not recommended. This serves only to impact the overall balance of supply versus demand and can actually make prices worse. Stocking up on other necessities is also a good idea, but again, within reason. There is no need to run and clean out the grocery store and give into that panic mentality.
Preparing for natural disasters should be done well before they strike, no matter where you live. By waiting until the last minute, consumers can end up overspending, only to find that there was no real reason for all of their upset. If you are in the path of a natural disaster, or your area is at risk, keeping a special disaster kit is the perfect response to this problem. Preparing ahead of time, while prices are low and panic is not present, will help consumers beat the common problems of panic-fueled prices.
In today’s society, there is definitely a raised awareness of how disasters, both manmade and natural can affect us all. Preparing is essential, there is no doubt about that. However, the key to getting ready is taking the time to stock up before disaster strikes, so that when it does, you have everything you need on hand. This will help you save money, reduce overall stress and keep you prepared for any eventuality, and without putting you through the paces of panic.
Photo Credits: 1
Originally posted 2008-11-07 05:10:16. Republished by Blog Post Promoter
Related Articles -
Great Budgeting Examples /caption] When you are looking at ways to implement a family or individual budget into your household, one of the most proactive steps that you can take is to look at great budgeting examples from other sources. Because everyone has unique financial and budgetary needs, there is no real one...... -
8 Tips for College Student Budgets [/caption] Below are eight tips for college students about money and finances. 1. Track your Expenses If you track your spending for a few weeks, you will be better able to figure out where your money is going. Are you spending an exorbitant amount of money on Starbucks? You may...... -
401k Planning Most people have questions when it comes to 401k planning and retirement. These people often wonder what 401k planning is, how 401k planning works, and how a dwindling balance can be revived. 401k plans can be complex, but they can also be quite easy to understand with a little bit...... -
Save Money by Managing Your Money /caption] There are plenty of ways for you to save money simply by managing it. It does not necessarily mean that you have to be frugal, but rather you simply have to be wise in the decisions that you make. Too many people these days are finding that they were...... -
Is Your Online Bank Safe? [/caption] Online banking has become incredibly popular and it is very useful. For those that rely on online banking, there is an accepted risk that goes with exposing your financial information online, but before you jump in, it is a good idea to do a little checking to make sure......
Related Sites -
Staying Solvent in Bad Economic Times Every day, the news about the economy seems to be getting worse and people across the world are concerned that they will be personally affected by the changes. In many cases, they already are when you consider how the cost of living has gone up, gas prices that seem to...... -
10 Reasons You Should Never Short a Stock or Index Fund Short sellers are often cast as the big bad villains on Wall Street. After all, they are the all knowing, short term traders placing big money bets hoping your portfolio goes down in value while they turn a quick profit. Unfortunately, for all of the bearish sentiment they spew...... -
World Markets: Be Culturally Savvy for Less Not having a ton of money and trying to eat well is no small task. One needs to maintain a healthy level of nutrition while not busting the budget. Many people in this situation resort to eating inexpensive foods such as ramen noodles, beans and the like. This practice can...... -
3 Ways to Save Money with Smart Alerts Shopping online has turned into a solid way to save money for me not just because it obviously saves much time that I can spend on earning money but for one more important reason that I can do a proper research before buying anything. Really, the Internet has provided with...... -
What Exactly is an Oil Speculator? You've heard the buzz word "oil speculator" shouted from the high heavens of Capital Hill, you've seen Americans at the gas pumps blaming these anonymous likely Caucasian men in suits for the high oil prices we are "suffering" with these days, but have you stopped to actually learn what......
Tags: economic damage, economic situations, fears, financial markets, gas containers, gas prices, grocery store, gulf coast, household, hurricane, mentality, natural disasters, necessities, offshore oil rigs, panic mode, pumps, shock, tanks, worst case scenario
Posted in Money Saving Tips, Personal Finance, Smart Money Ideas | No Comments »
Saturday, March 6th, 2010
#4 Pace Yourself
Below are eight tips for college students about money and finances.
1. Track your Expenses
If you track your spending for a few weeks, you will be better able to figure out where your money is going. Are you spending an exorbitant amount of money on Starbucks? You may want to cut back. Most college students do not realize where their money is going until they really take the time to pay attention to their receipts at the end of the week.
2. Formulate a Plan
The best way to manage your finances over the course of a semester is simply to sit down and really take the time to map out a budget. List all of your sources of income, tracking potential income and actual income earned. Then list all of your expenses, including tuition, books, groceries, and so on. When you have a plan formulated, you can better track money coming in and going out.
3. Make Room for Good Time Money
You need to make plans to have a little bit of personal spending money for entertainment purposes, eating out or other special purchases, otherwise you can easily throw your entire budget plan out of whack. Make some room for entertainment money and just vow to stay within your budget from month to month.
4. Pace Yourself
If you spend too much money at the beginning of the semester you will run out of money before the end. Give yourself a weekly spending limit based on how much income you have, and stick to it so you don’t end up tapped out by the end of the semester.
5. Go Easy on Credit
Credit cards are nice, and useful, but only for some purchases and not all. One quick way to spend way beyond your means is to use credit in the wrong ways. Use your credit cards sparingly if you have them, otherwise you may end up hooked on charging things, which is a great way to rack up unavoidable, unnecessary debt.
6. Set a Personal Credit Line
Just because your credit card has a limit of $2,000, that does not mean you have to spend that much. Only spend what you can actually pay back. If you only have $500 to attribute to paying back a credit card, only spend that much on the card and you will be fine.
7. Be Realistic
You can do what you want to do, but you cannot necessarily do everything that you want to do. Make some choices and be prepared to make some sacrifices because doing things and buying things is going to make a dent in your wallet, but some expenses can be easier on the wallet than others and provide just as much return on investment.
8. Plan Ahead for Emergencies
If you bust your entire budget this week on something you want to do, make sure to make up for it next week. If you constantly spend your entire budget frivolously, you can end up unprepared for emergencies like auto maintenance costs, course materials, health costs and so on.
Photo Credits: 1
Originally posted 2008-11-06 05:11:31. Republished by Blog Post Promoter
Related Articles -
Tips for College Student Budgets /caption] Trying to make ends meet when you are in college is not an easy task. Your income is usually pretty limited and expenses can be high, even if you have a scholarship. If you’re trying to save money or just get by, there are some great tips for college...... -
Is Some Debt Good For Your Credit? /caption] There is no doubt about this, first of all: Getting into debt is more than capable of getting you into trouble. Although there is definitely a large downside to debt, borrowing money can also do you some good. Some debt is actually good for your credit, but only if...... - When Disaster Strikes [/caption] As Hurricane Ike took aim for the Gulf Coast, the financial markets reacted much in the way that they were expected to. Gas prices jumped to $5 a gallon along the gulf coast, and many expected the price jump to go nationwide, particularly if the hurricane caused damage to......
- Great Budgeting Examples /caption] When you are looking at ways to implement a family or individual budget into your household, one of the most proactive steps that you can take is to look at great budgeting examples from other sources. Because everyone has unique financial and budgetary needs, there is no real one......
-
5 Tips for College Students on Budgets When you are in college, it can become easy to get caught up in your busy, stressful lifestyle. With all of the studying and working that you have to do, coupled with hanging out with your friends, working part time jobs and participating in extra activities, it can actually become......
Related Sites -
Welcome MSN Money Central Smart Spending Readers! We would like to thank Karen Datko of MSN Money Central's Smart Spending for the mention on our recent post: Economical Pet and Child Safe Ways to Repel and Kill Ants, Spiders and Other Insects. If this is your first time here, please have a look around and consider subscribing...... -
Recession Not Through With Us Yet While it may seem that the nation's economy is taking a turn for the better and strides toward the positive are being made, the recession times we have been experiencing are not exactly over. With so many people starting to regain confidence in their personal finances again with just the...... -
Create Your Own Layaway Plan. Recently, I have seen a bunch of ads on TV for layaway plans at big box stores. I had no idea that layaway even still existed, as I only remember it from when I was a small child at our local Kmart - and have not seen it since then....... -
The Basics of Personal Finance are Not Hard It Doesn't Matter if you Make $46,000 or $460,000 Every single day at work, I discuss multimillion dollar estates.  Every day I get to work with balance sheets with numbers I can only dream aboutâ¦hell with numbers anyone can dream about. Just today, I saw a balance sheet with approximately $21,000,000, and it was only $21,000,000 because he didnât want it written down...... -
Personal Finance Credit Crunch Budgets are unfortunately quite the necessary evil when it comes to managing your own personal credit crunch. Everyone is going through a credit crunch, even those who have relatively healthy credit. The only practical way to keep yourself financially stable in this volatile market is to get a grip on......
Tags: amount of money, budget plan, college students, credit card, credit credit cards, entertainment purposes, good time, groceries, little bit, much money, pace, personal credit line, receipts, spending money, starbucks, time money, vow
Posted in College Student Finances, Credit, Emergency Fund, Managing Money Wisely, Money, Personal Budget Planning, Personal Finance, Smart Money Ideas | No Comments »
Monday, March 1st, 2010
Help your teen build strong money management skills.
One of the best ways to build a strong financial foundation in teens is by starting a savings plan early on. Over the past few years, there have been more teens saving money and the results are clear. When you take the time to teach good financial practices to your children, these skills will carry them through life, helping them to build up a nest egg that they can rely on in the future. If you want to start your kids down this financial path, here are a few tips on how to get your teens saving money now.
1. Set up a reward system.
At first, before the benefits start to kick in, your child may need some extra incentive to start saving money. Try setting up either a reward once they reach a certain dollar amount, or you may even want to offer to match their savings, dollar by dollar. This is a great way to get your teens saving money and offers them some real incentive, as well as hard evidence, that saving is very beneficial. Even if you only add a few dollars to their account at a time, this extra money will help them get motivated and stay focused.
2. Start discussing sound financial principles with your child.
Once you’ve got your teens saving money, it’s a great time to start talking about setting financial goals, and working on the follow through. For example, you can ask your child to set a goal as to what they would like to be able to buy, that they cannot afford right now. This helps them see the value of the hard work they are putting in towards saving for that item and once again, will keep them motivated. However, it is important that they understand that spending all that they have saved up isn’t the best solution and that they should have long term goals, as well as short term goals.
3. Take them to the next level.
Once you have your teens saving money and they are learning more about goal setting, you can take their lessons to the next level by incorporating information about setting up more than one stream of income. Help them to set up a portfolio, use a p2p lending service like Loanio to lend money, or open a high yield savings account for them so that they can start to watch their money grow. This is also a good time to start talking about investments with your teen, even if they can’t quite make their own just yet.
4. Get them interested in continuing education.
One of the best ways to get your teens saving money is by teaching them how the stock market works and how they can add to their savings account easily. There are numerous online sites that will provide users with free example “money” that can be used to invest in theoretical stocks. This is a great training method that has no risk, but can be incredibly useful in teaching lessons about stocks. You may even want to take part in these yourself and set up a competition to see who can make the best theoretical picks.
Photo Credits: 1
Originally posted 2008-10-31 04:55:15. Republished by Blog Post Promoter
Related Articles -
Free Investment Research Can Make Your Money Profitable /caption] Do you still recall learning how to conduct research in high school and college? If you are tired of researching subjects for school, it may be difficult for you to come up with a good reason to continue conducting research as an adult, but it is unfortunately a little...... -
3 Tips for Teen Investing Parents like to complain that their teenage children do not listen to them. However, when it comes to matters dealing with money, the opposite is actually often true. Teenagers often welcome the advice that their parents have to give regarding finances, money management and investments. In the past few years,...... -
Managing Money Wisely [/caption] One of the hardest things for many people to accomplish is managing money wisely. We may all know the basics, and understand that spending too much is a good way to get on the road to financial ruin. However, when push comes to shove, we end up making mistakes...... - Save Money by Managing Your Money /caption] There are plenty of ways for you to save money simply by managing it. It does not necessarily mean that you have to be frugal, but rather you simply have to be wise in the decisions that you make. Too many people these days are finding that they were......
-
Child Savings and Investment /caption] Having children is not a cheap proposition these days, especially when you consider long term costs. The older your children become, the more they are going to end up costing in the long run. High education prices, for example, continue to soar making it nearly impossible for you to......
Related Sites - Recession Not Through With Us Yet While it may seem that the nation's economy is taking a turn for the better and strides toward the positive are being made, the recession times we have been experiencing are not exactly over. With so many people starting to regain confidence in their personal finances again with just the......
-
Finding Money to Save Saving money is challenging when most (or all!) of your income seems to be going towards living expenses and debt repayments. There are several ways to reduce your expenses in order to give you some money to save each month - here are a few tips to get you...... -
How I Love Thee ING Direct, Let Me Count The Ways I've had a high interest savings account with ING Direct going back to 2003. I was at my parent's house doing my taxes on their computer with Turbo Tax. At the end of the session an ad popped up with an offer to sign up to ING Direct's online savings...... -
How to Survive Inflation Turn on the television, read a paper or go online and chances are you’ll be bombarded with bad news about the state of the economy. Inflation is being whispered about, and in some cases, shouted about from the rooftops. Are we really facing inflation and how bad will it get?...... -
Festive Link Love Carnivality #23 The first week of school has come for our daughter, now entering third grade. Seriously I feel like it was last year that I took her to kindergarten! This is the first time in a long while that my wife isn't going back to school (work). We haven't felt......
Tags: best solution, extra money, financial foundation, financial goals, financial path, financial practices, financial principles, great time, hard evidence, high yield savings, long term goals, nest egg, next level, reward system, saving money, short term goals, Stock Market
Posted in Managing Money Wisely, Money, Personal Finance, Smart Money Ideas, Stock Market, Teens Saving Money, Teens and Money | No Comments »
Saturday, February 20th, 2010
Have an emergency fund.
If you are concerned about the state of your finances, your job or if you would just like to have a safety net that will be there to catch you if something goes wrong, an emergency fund is a very powerful tool to have in your financial arsenal. Emergency funds can be used for just about anything and these are the proverbial “rainy day” funds that can help you stay afloat when the worst happens. Since we can’t control everything in life, it’s always nice to know that you do have other options to keep you financially solvent.
Setting up an emergency fund is actually quite easy and although it can take a few months to get to the point where you won’t have to worry, you’ll have the satisfaction of knowing that you’re saving ahead for your future. This makes it a lot easier to keep going and keep working on building up that emergency fund.
The average emergency fund should contain at least enough money to pay your expenses for three months. Ideally, it should be for six months to a year, but the key is to get started and worry about the actual amount later. Once you have your emergency account set up, adding to it is the easiest part.
So, you’ll need to sit down and calculate how much money you make a month, and how much you are spending. Use one month as your basis for the average amount of money you would need and you can go from there. The main use for an emergency fund is typically to cover you if you end up losing your job, so use this as your template for building up your emergency fund.
Once you have a better idea of how much needs to go into your emergency fund, it’s time to get started on where you will be keeping it. While burying it in the back yard is out of the question, it is important to keep your emergency fund in a place where it can be quickly accessed. A savings account with a debit card or checks that you can write is ideal in this situation since you’ll be able to quickly withdraw your funds if necessary and you won’t have to wait for business hours if you are in the midst of an emergency.
Your emergency fund should not be tied to your regular checking account or any other account. This can help cut down on the temptation to spend your rainy day money while it is still quite sunny out. Remember, whenever you are tempted to dip into that account, what could happen if you lost your job today. Would you have enough money to pay all of your bills, and keep your house and car? This is very good motivation if you are having a difficult time keeping your hands out of the till. Work towards a bigger goal with your emergency fund and don’t forget to keep adding to it to make it grow further.
Photo Credits: 1
Originally posted 2008-10-23 08:47:00. Republished by Blog Post Promoter
Related Articles - Do You Avoid Personal Budget Planning? /caption] One of the things that can make your life easier, even though it sounds complicated, is personal budget planning. If you're one of the fortunate few who never has to worry about running out of money no matter how many extra expenses might crop up or how much extra......
-
Breaking Down Budgeting A personal budget is simply a spending plan. Before you work on personal budget planning you need to have a good idea of where and how your money is being spent. It can be a tedious process, but it can also be a true eye opener if you are not...... - Great Budgeting Examples /caption] When you are looking at ways to implement a family or individual budget into your household, one of the most proactive steps that you can take is to look at great budgeting examples from other sources. Because everyone has unique financial and budgetary needs, there is no real one......
- Personal Budget Planning /caption] Personal budget planning is an important part of keeping a handle on your finances. Because there is so much turmoil in today's economy, maintaining a healthy personal budget is more vital than ever. Crafting a personal budget begins with determining how money comes in, and how money goes out,......
-
How Do I Plan For Retirement Every working man and woman is entitled to a retirement that is secure and comfortable. Saving and planning for retirement is not necessarily an easy process however because we are living longer and healthier lives in general, which means we need more money to survive retirement than ever before. If......
Related Sites - When is the right time to start an emergency fund? Craig (of Budget Pulse) recently asked, "Everyone stresses an EF [emergency fund], but when's the right time to start one?" I think he brings up a good question -- one with a brief, all-purpose answer: Now. If you don't have an emergency fund, start building one today. Right now. Open......
- The Tri-Level Emergency Fund This past Saturday evening I joined radio talk show host Michael Finney of KGO AM 810 San Francisco on his weekly radio show, "Consumer Talk with Michael Finney," to discuss my recent post about safe places to keep cash at home. During our conversation I shared with him my Tri-level......
-
Using a Home Equity Loan for an Emergency Fund Most mainstream financial advisors will suggest that you should keep some money aside in a special savings account for emergencies. This seems to make sense, say if thereâs something such as a car accident, an unexpected medical expense, or something goes wrong in the house, thereâs money to take care...... - Emergency Funds For Different Kinds Of Emergencies One of the key components of my family's financial turnaround was the addition of an emergency fund. An emergency fund may be best described as a pot of money used to handle life's emergencies while helping you avoid reaching for a credit card. In the past it was these small......
- The 7-Day Turnaround, Day 2: Build an Emergency Fund, Quickly This is the second article in Frugal Dad's week-long series, The 7-Day Turnaround: One Week to Change Your Family's Financial Destiny. Each day brings a new step to implement and help you get control of your finances. Experts argure over the first step of a money makeover. However, anyone who......
Tags: amount of money, back yard, business hours, checks, debit card, emergency account, emergency fund, emergency funds, enough money, how much money, losing your job, rainy day, safety net, satisfaction, savings account, six months, three months
Posted in Emergency Fund, Money, Personal Finance, Smart Money Ideas | No Comments »
Friday, February 5th, 2010
Money managers for many are necessary.
If your idea of organizing your finances is throwing a receipt in a big pile, you may want to consider the benefits of hiring a money manager. There is a new trend in the financial world where daily money managers are becoming very popular, and for many consumers, they are very necessary. Let’s take a look at what a daily money manager does and how they may be able to benefit your personal finances.
1. Organize paperwork and receipts.
When it comes to getting your paperwork in order, or keeping a record of all of your receipts, most of us end up failing miserably. Trying to track down little slips of paper is maddening at best, and for those of us with little time on our hands, the task of getting our paperwork organized is simply too much. We put it off and before long you end up with a slew of jumbled papers and you can’t find the one receipt you really need. A daily money manager will catalog all of your paperwork, filing it away and help you keep track of expenditures by organizing your receipts.
2. Paying bills on time.
If your schedule is hectic, or you simply aren’t good about dates, paying your bills on time can be a struggle. A daily money manager can be used to help you make sure that all of your deadlines are met, and that nothing is left unpaid by the end of the month. Once again, for those with a busy lifestyle or an inability to keep everything running smoothly, a daily money manager can be a true financial lifesaver.
3. Mediation.
A daily money manager does not replace an accountant or a lawyer, but they can assist in mediating between their clients and these professionals. For example, if you have filed a claim with an insurance agency, a money manager can assist you in handling the communication with the agency and getting all of your necessary documents together. The vast majority of daily money managers are trained and have backgrounds that include legal, financial, and insurance expertise.
4. Day to Day Basics.
For many of us, the devil is in the daily basics of keeping our finances ordered. Instead of letting things get out of hand for months at a time, a daily money manager can offer assistance in keeping checkbooks balanced, paperwork accounted for and everything you need to have handled in your personal finance life done.
As we get busier as a society, it is clear that there is a definite need for daily money managers. If you do decide to hire a daily money manager to help manage your finances, there are a few things to consider ahead of time. First, you will need to make sure that they are accredited and licensed. This professional will have access to your documents and it is vital to ensure that you can trust them. Look for a major national firm or someone in your local community that you can rely on.
Photo Credits: 1
Originally posted 2008-10-09 05:14:08. Republished by Blog Post Promoter
Related Articles - Save Money by Managing Your Money /caption] There are plenty of ways for you to save money simply by managing it. It does not necessarily mean that you have to be frugal, but rather you simply have to be wise in the decisions that you make. Too many people these days are finding that they were......
- 3 Tips for Teen Investing Parents like to complain that their teenage children do not listen to them. However, when it comes to matters dealing with money, the opposite is actually often true. Teenagers often welcome the advice that their parents have to give regarding finances, money management and investments. In the past few years,......
-
4 Things You May Not Know About Budgeting /caption] While most of us understand the basic concept of having a budget and sticking to it, there are many misconceptions about budgeting that keep people from implementing one. Let’s address the most common things that you may not know about budgeting. 1. It’s not that difficult. The prospect of...... - 5 Tips for College Students on Budgets When you are in college, it can become easy to get caught up in your busy, stressful lifestyle. With all of the studying and working that you have to do, coupled with hanging out with your friends, working part time jobs and participating in extra activities, it can actually become......
- Setting Goals for Good Personal Finance /caption] Setting goals is an important part of your personal finance plan. Goals can be divided into four unique categories that are relatively general in nature. These categories are short term goals, intermediate term goals, long term goals and life goals. Short Term Personal Finance Goals - These short term......
Related Sites - Personal Finance Interview with Weakonomics I wanted to try something different with the blog. I'm doing two part interviews with bloggers on two of my sites. The first part is on my freelance blog at Vega Baja Productions and the second will be here on Green Panda Treehouse. I was fortunate enough to have Phillip......
- The Weekend of Nothing (and Personal Finance Links) With the wife out town for what seems to be the 745th straight day, Jake (my new puppy) and I had a weekend of sitting around in a pool of our own slobber. I did nothing and it was everything that I hoped and dreamed it would be. Office Space......
-
Five Ways Fantasy Baseball is Like Personal Finance I had my draft for my fantasy baseball league I'm in earlier this week. I've been in the league with these particular guys now for over five years. It's not a money league but we're real competitive nonetheless. I gotta say I'm real excited! Not only is real baseball starting...... -
Personal Finance Resource Links 05-10-09 Happy Mother's Day!! Make sure you appreciate all of the moms in your life today. It's supposed to be nice here in NYC so I think we'll be getting outside for some family fun. (If you haven't gotten anything for Mom yet check out my Ways to Save on...... - Personal Finance Links (Harry Potter / Michael Edition) This weekend my wife and I went to see Harry Potter. It's a bit of shocker that it took this long. My wife is a huge fan to the point were we have Gryffindor dinner plates. I'm not as much of a fan. While I like it, Harry and I......
Tags: accountant, consumers, expenditures, insurance agency, lawyer, lifesaver, mediation, money manager, money managers, necessary documents, new trend, organizing your finances, paperwork, personal finances, receipt, receipts, slips of paper, time on our hands
Posted in Managing Money Wisely, Money, Personal Budget Planning, Personal Finance, Smart Money Ideas | No Comments »
Thursday, February 4th, 2010
Your appliances are adding to your energy bill.
We live in a digital age and the vast majority of us rely heavily on numerous technological devices to get us through our days. What we may not realize however is just how much these gadgets cost to run. Companies throughout the United States are finding out that they are wasting millions if not billions of dollars overnight in their companies and consumers face the same problem, even if the cost isn’t quite that high.
The energy drain caused by our gadgets is quite significant and can greatly affect a monthly power bill. Here are some tips to help you reduce your power bills, and keep your gadgets from sucking the life out of your wallet.
1. Turn off your computer at night.
Even though it is convenient to let the computer go into sleep mode, it is still using power, even if it doesn’t look like it. Simply turning off your computer can result in big energy savings, since it is one of the biggest culprits when it comes to energy drain.
2. Turn off your monitor.
In addition to shutting down your computer, it is also very important to turn off your monitor. Once again, we’re dealing with a sleeping issue, but in reality, that monitor is pulling quite a bit of juice throughout the night. Many consider monitors, especially CRT’s to be one of the biggest energy drainers in existence and they can greatly impact how much you spend on your power bill every month.
3. Unplug unnecessary items.
Just because a gadget is off doesn’t mean that it is not using power. It is best to unplug any unnecessary items throughout the night, especially if you have several throughout the house. Take a quick inventory of your home and see just how many different things you have plugged in. The amount may surprise you. Try unplugging a few at first and see just how much money you can save. Chances are you’ll be inspired to unplug the rest.
4. Consider rechargeable batteries.
They may not be on your power bill each month, but many of our devices rely on batteries and it doesn’t take long for the costs to mount up. You may want to consider purchasing a battery recharger to help you lower your reliance on new batteries. The initial cost can easily be paid off in a short time with the money you save on your batteries. For Wii owners, the rechargeable remote stations are a big money saver!
5. Less is more.
If you have a copier, fax machine and printer all plugged in, you’re increasing the amount of energy you’re using without doing a thing. Consider getting an all in one machine that will be more efficient. In addition to saving money on your power bill, you’ll also be able to save some space.
We need our gadgets, and as a result, there is a price to pay. How high that price is will depend on how well you implement energy saving techniques throughout your home.
Photo Credits: 1
Originally posted 2008-10-08 05:10:03. Republished by Blog Post Promoter
Related Articles - 3 Tips for Teen Investing Parents like to complain that their teenage children do not listen to them. However, when it comes to matters dealing with money, the opposite is actually often true. Teenagers often welcome the advice that their parents have to give regarding finances, money management and investments. In the past few years,......
-
Prepare for Your Retirement Now /caption] If you are young and just beginning a career, then the concept of retirement planning may seem so far away that it is the last thing that you put any consideration into. However if you are on the opposite end of the fence and retirement is just around the...... -
Save Money with These 4 Tips /caption] There are ways that you can save money, and all you need to do is learn about managing money wisely to do it. You are not necessarily being frugal, per say, but rather you are learning how to be wise in the decisions that you make. Unfortunately, most people...... -
Finding a Legitimate High Yield Investment Most people hear the words High Yield Investment Program, or the acronym HYIP, and many of them quiver. This is not completely unnatural, because high yield investments only come with high risks, and most HYIP opportunities are not even legitimate to begin with. There are simply too many people out...... - How Do I Plan For Retirement Every working man and woman is entitled to a retirement that is secure and comfortable. Saving and planning for retirement is not necessarily an easy process however because we are living longer and healthier lives in general, which means we need more money to survive retirement than ever before. If......
Related Sites - Business Telecom Choices and How Convergence Affects You Years ago telecommunications was rather straightforward. You had a phone on your desk, it rang and you answered it. The telephone operator sat downstairs and answered each call, directing it to the proper telephone. Things have changed drastically since those days.Now there are automated systems to answer and direct......
-
Save Time, Money and Space in Over 80 Ways If you're looking for handy gadgets, tools and various items that can save you time, money or space (or all three!) this list of more than 80 top products is just what you need. Everyone's got saving money on their minds these days. Some of us are always looking to...... - The state of my finances Part of goal-setting involves monitoring your progress. I do this mentally on a regular basis, but sometimes it's good to step back and actually write out the bigger picture as well. I believe that it's good to do that at least annually. Here is a checkup on the money-related goals......
-
Choosing the Right Triathlon Bike The biggest step in figuring out what type of bike you should ride in for your triathlon is to determine what kind of money you have in your budget for the right bike. This is going to be absolutely the biggest factor in helping you to determine which bike is...... - Earth4Energy: Generate Power And Reduce Your Electricity Bills So, you are interested in knowing how to generate power and reduce your electricity bills, than you have come to the right place. With the ever increasing costs of living and global warming, there should be better time when we stop throwing money out the window and save some by......
Tags: billions of dollars, consumers, energy drain, energy savings, gadget, gadgets, how much money, power bills, rechargeable batteries, sleep mode, technological devices, united states, wallet
Posted in Money, Money Saving Tips, Personal Finance, Smart Money Ideas | No Comments »
Thursday, December 31st, 2009
Plan for Retirement Now!
If you are young and just beginning a career, then the concept of retirement planning may seem so far away that it is the last thing that you put any consideration into. However if you are on the opposite end of the fence and retirement is just around the corner, then you may find yourself struggling to figure out how to keep things handled. Regardless of what your unique situation currently is, it is an absolute must that you begin to prepare for your retirement now if you have not done so already. Considering everything that is going on right now, like gas price fluctuations, fears of recession and the instability of Social Security, planning for retirement is simply not what it used to be. You need to invest, plan and save for your retirement these days rather than simply saving and hoping for the best.
First of all, your place of employment may be able to offer a retirement plan or 401k plan, but this is not always the case. Back in the day, 401k planning was known as pension planning, and it was a vital and solid part of the retirement planning process. However, as the economy turns into an economy that is more competitive than ever, these older and more reliable retirement plans are becoming a thing of the past. Still, 401k planning can be absolutely vital, and most employers do offer 401k planning support to their employees.
401k planning is a vital and powerful way for you to invest for your retirement over a period of time. 401k planning usually allows for you to invest in a number of different company stocks and mutual funds. When making your selection for investments, it is important that you learn how to practice diversification, which means spreading your investments out into different asset classes. Most importantly, it’s important for you to learn from others mistakes. Do not put all of your retirement funds into the company’s stock, for example. No matter how solid you think the company is that you are working for, things can go wrong, and you can lose your retirement plan when you lose your job if you’re not careful.
Now, if your employer does not have a 401k planning process, then it is more important than ever for you to take a proactive approach to retirement planning. You can set up an IRA or Individual Retirement Account, which is an excellent way for you to kick start the retirement planning process when you do not immediately have 401k planning options available to you. Traditional IRA accounts allow you to deduct your contributions so that you can take advantage of growth with taxes deferred until retirement. Roth IRAs work differently, in that they are not deductible when you contribute, but when you go into retirement they will be completely tax free.
401k planning is an important part of preparing yourself for retirement, so take it seriously and do not wait. The sooner you begin planning for your retirement, the better off you will be.
Photo Credit: 1
Originally posted 2009-01-02 05:53:44. Republished by Blog Post Promoter
Related Articles -
Teens Saving Money [/caption] One of the best ways to build a strong financial foundation in teens is by starting a savings plan early on. Over the past few years, there have been more teens saving money and the results are clear. When you take the time to teach good financial practices to...... -
401K Planning 101 If you are young, and you are just beginning a career, then the idea of retirement planning may seem so very far off that it is probably the last thing on your mind right now. But if you are on the other side of the fence, and retirement is approaching...... -
Personal Budget Planning is Crucial! [/caption] Personal budget planning is absolutely crucial if you want to build personal wealth and overcome things like the credit crunch and the current problems that the economy is experiencing. The word "Budget" is one that worries a lot of people because it often seems more like a hassle and...... - 401k Planning Most people have questions when it comes to 401k planning and retirement. These people often wonder what 401k planning is, how 401k planning works, and how a dwindling balance can be revived. 401k plans can be complex, but they can also be quite easy to understand with a little bit......
-
Are Your Gadgets Sucking Your Wallet Dry? /caption] We live in a digital age and the vast majority of us rely heavily on numerous technological devices to get us through our days. What we may not realize however is just how much these gadgets cost to run. Companies throughout the United States are finding out that they......
Related Sites - Money Management Tip – Always Check for Errors Money management tips come in all shapes and sizes. Some relate to complicated matters like maintaining a diversified investment portfolio or maximizing your retirement plan contributions by taking advantage of employer matching contributions. Other money management tips, however, can be very simple. In fact, one of the simplest tips I’ve......
- Why Your 401K is Important Do you have a 401k plan? If not, does your employer sponsor this type of program? If so, you should enroll and immediately. Why the rush? Continue reading on to find out. If you weren’t aware, a 401k is an employer sponsored retirement savings program. Over time, you contribute money.......
-
Top Retirement Planning Blunders Planning for your retirement doesn't have to be a game of chance. There is simply no way you can predict exactly how long you will work, how much money you will be able to accumulate or what expenses you may face in retirement. One thing we can each count on...... - Our Early Retirement Plan: My Wife's Plan (Part 3) If you are just starting this, I suggest you start at The Introduction - Part 0. Alternatively, you can jump to Our Early Retirement Plan: Where We Are Now (Part 1) or Our Early Retirement Plan: My Personal Income (Part 2). Before I start, I should come clean. I'm going......
- Tips for Retirement Planning Some days I think that I get so bogged down in dealing with our day-to-day finances that retirement seems too far away to even think about. I know that my husband and I won’t be old enough to retire for almost thirty years. Who has time to think about retirement......
Tags: 401k plan, asset classes, company stocks, different company, diversification, economy, fears, fence, gas price, Investments, mutual funds, period of time, place of employment, price fluctuations, recession, retirement funds, retirement plan, retirement planning, retirement plans, Social Security
Posted in 401K Retirement, Managing Money Wisely, Money, Personal Finance, Plan for Retirement, Smart Money Ideas | No Comments »
