Monthly Archives: November 2018
Invest aggressively to save sufficiently for your retirement years. Compound interest will be your friend if you are consistent over a long period of time.
Use tax-advantaged retirement accounts as a way to save more. The traditional forms such as Roth IRA’s and 401 (k)’s will give you up-front tax breaks by shrinking your taxable income in the year of your contribution –while the Roth versions accept post-tax contributions and promise tax-free withdrawals if you follow the rules. Contribute at least enough to your 401(k) to receive any matching money available from your employer —that’s free money, after all.
For best results throughout your financial life, live below your means- such as by using coupons, comparing prices before buying, bypassing some luxuries, and bringing lunches. The more you can save, the better off you’ll be — now and in retirement. You might hike the percentage of your pay that you contribute to your 401 (k) account annually, and another strategy is to plow any raise you receive right into your savings.
Having a budget is key to your personal financial success. If you have no problem spending money on anything you want while also saving and investing sufficient sums to meet your financial goals (such as retirement or down payment on a home) you may not need to budget. But most folks will profit by taking the time to track exactly how they’re spending their money and coming up with an improved, money-saving spending plan. Categories such as housing, food, utilities, and savings should come before travel and other discretionary spending.
Shop for cheaper insurance regularly. Be sure you have all the insurance coverage you need — home insurance, car insurance, life insurance, health insurance, and renters insurance. Once you buy your policies, don’t stop there. Aim to spend an hour or so each year making phone calls to insurers, to shop around for better rates. Different insurers might offer the best deal in different years, also keep an insurer’s reputation in mind too. Don’t switch to one that’s not rated highly.
Get life insurance if you need it. If anyone is depending on you financially – and this can be not only your kids but also a spouse or even your parents or siblings – you need life insurance. Term policies are generally better deals than whole life policies as they only have you paying for life insurance and no one depends on your income any more — your kids are grown and your spouse will be fine financially without you — consider ending your policy in order to save money.
Have fund an emergency. Here is an alarming statistic: Fully 44% of Americans didn’t have ready funds to cover an unexpected $400 expense and would have to resort to borrowing money or selling something, according to a Federal Reserve report last year. Have 3 to 9 months’ worth of living expenses saved just in case.
Get and stay out of debt. It is good to carrying minimal debt. Having a mortgage is often unavoidable, and most people that’s not a big problem as interest rate are currently low. But any high-interest rate debt, such as credit cards, should be paid off as soon as possible. Many credit card companies are charging cardholders annual interest rates are 25% or more, and on $20,000 of debt at 25% can cost you around $5,000 each year!
If you are unable to save, consider these 3 things:
- The past 12 months were filled with budget busters such as car repairs, medical copays, and a need to replace major appliances.
- You were already living paycheck to paycheck, and the increased costs of food.
- You simply didn’t make it your business to save.
It’s vital to have an emergency fund and ideally additional savings for future goals, such as replacing a vehicle, buying a home or building up a college fund. In the end, you must take responsibility for making them happen.
Happy Veterans Day! There are some valuable perks and benefits available for those in the military and their family members. Whether you’re already serving, or considering it, check out the many financial benefits and discounts that may be coming to you and your family.
- movie theatre tickets
- low rates for financial products
- family health care
- housing allowance
- Disney tickets and hotels
- Busch Gardens, Sea World and more
- Military shopping benefits
- Childcare assistance
- Dining-out discounts
- Recreation benefits
- Space-available flights and discounted airfare
- Military lodging and hotel stays
- VA home loans
- Car discounts
- Motorcycle discounts
- Car loan assistance
- Educational benefits
- Cellphone savings
- Spouse career development
- Employment assistance
- Legal assistance
- Retirement savings
- State tax breaks
- Emergency loans and resources
- Business loans
Recent Posts
Recent Comments
- Donna Taylor on Why Do I Need An Emergency Savings Account?
- Donna Taylor on Focus Second on Eliminating High-Interest Debt
- Sharon Thorne on Focus Second on Eliminating High-Interest Debt
- Ricky B. Wamble on Why Do I Need An Emergency Savings Account?
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