28 February 2010

How to Save When You’re in Debt

Saving can be hard in the best of times, but when you’re in debt it can be particularly. How can you save money when everything seems to be going to making your minimum payments?

Learn some basic advice for how to look at your finances and figure out how to pay yourself as well as your bills.

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17 January 2010

How to Choose a Savings Account

While it is easy to spend all the money which comes in from your wages, and then some, today is the day you will start a savings plan and start using your money more wisely, for two reasons:
Firstly you’ll see how important it is to have a savings plan.
Secondly you’ll see how easy it is to open a dedicated high interest saving account which practically manages and runs your savings plan for you.

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30 August 2009

The Joneses Are Your Enemy

We all know better than to try to keep up with the Joneses. Sadly some of us still try.

Even worse, many of us let the Joneses affect us in ways we never even notice. Are you letting your neighbors have an undue influence on you?

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2 August 2009

Some Thoughts on “Dollar Cost Averaging”

“Dollar Cost Averaging” is pretty much an accepted wisdom in investing circles today, but when we refer to DCA what are we really talking about? Are we using the right terminology?

When we are talking about “Dollar Cost Averaging,” are all our preconceived benefits really as proven as we think? What are the benefits of Dollar Cost Averaging?

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16 July 2009

Why You Spend More Than You Make (and What To Do About It)

We all know we’re not supposed to spend more than we earn, but many of us somehow manage to do it. What is driving us to do this and how can we stop it?

As usual, the answers are pretty simple, but you have to really identify what you’re doing in order to take the steps to avert the problem.

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12 July 2009

Debt Reduction for the Willfully Stupid

Debt reduction is not rocket science. People try to make it hard. Ultimately you’re going to have to spend less and earn more.

Despite all this simplicity people are generally too stubborn to simply accept that they’ve lived beyond their means and take the hard steps to correct the situation.

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9 April 2009

CD Ladders: Some Personal Experience

Building a CD ladder can be a safe way to maximize your savings. Unfortunately the banks you deal with may have some other ideas. At a minimum they often want to make your life difficult.

In order to try to help you avoid some of the painful mistakes I have made, I share my experiences on CD ladders and some tips for maximizing your returns without too much pain.

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16 February 2009

Investing Step #7: Home Ownership

While there are not explicitly tax-deferred savings plans for housing, the Roth IRA can work very much like one. If you are looking to buy your first home in the future, more than 5 years from now, or if you have a Roth IRA opened already, such an account may be a very reasonable option for your investing dollar. While you cannot take your contribution out pre-tax, any income you make over those 5 years can be used tax-free to buy a house, up to $10,000 per person. This can be a considerable savings.

While retirement and college may seem like distant issues, buying a home is much closer on our investment timeline for most of us. If you already own a home, or have in the past, you can pretty much skip this section as a Roth IRA will not do you much good. Its exemption for buying a home only applies to first time buyers, but it can be very powerful for those looking to maximize their earnings.

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14 February 2009

Investing Step #6: College Saving

The next event or investing horizon is College. Obviously in some cases a first house may be sooner than college, or even in more rare cases retirement may be further off. In general however money that is invested in College Savings Plans will be tied up the second longest, next to your Retirement Accounts.

Due to the wide variety in the plans there can be many key details, but ultimately the primary consideration in these plans is the likelihood that this money will be used for college. If it is not, then the money will be taxed when withdrawn, as well as a 10% penalty, similar to early withdrawal in a retirement account. At the same time, college can be a major expense in a family’s life and the tax benefits of these accounts can be huge.

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4 February 2009

Investing Prerequisite #1: How To Deal With Debt

Deciding when and how to pay off your debts is not a simple matter. While it can be comforting to be debt-free, that may not always be the most financially expedient approach-nor is it the whole picture. Here are a few steps, including analyzing and paying off debt, that really make your money work FOR you.

First you must establish a fund to allow for emergencies in your life. Then you need to adopt a strategy for getting rid of the rest of your debt. The freedom this will allow you is key in making investments. Paying off your debts is a must before proceeding.

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