Simply Junior » Saving Money

How to Get Out of Debt and Start Saving Money

admin — Mon, 27 Jun 2011 12:22:00 +0000

I would like to share with you my thoughts on how to get out of debt and start saving money. I hope you enjoy it.

Whatever your income, whatever your priorities for your money, there are millions of people living happily on less than you earn. This logically means that not only is it possible to enjoy a great lifestyle on your income, but it is also practical.

Lots of people spend around 102% or thereabouts of their income, that is they are not saving anything and in fact they are slowly going backwards.

Have you ever received a pay increase only to find that your lifestyle does not noticeably change but the additional funds just disappear? Like you have holes in your pockets! I know the feeling, it has happened to me, and quite a few friends.

A different friend of mine went to a mortgage broker and consolidated all of his loans to one large flexible loan with all the features of his other loans rolled into one. He used to have a home loan, personal loan, car loan and several credit cards and now all accounts are linked to a central account that is at home loan interest rates and has his home as security . This arrangement can work very well resulting in the saving of hundreds of dollars a month in interest as it did in his case. But he was no better off either!

Yet another friend had his wife return to the workforce after their kids were all at school. Their household income in this case increased over 80% overnight. But. guess what, after a couple of months they too found that they were no better off.

Why is it so? It seems that without some discipline and a plan our spending habits just seem to automatically adjust to use all the money, and a bit more! If you have easily accessible cash or credit you are more likely to spend it. Most of us like spending money or at least are tempted. ‘Hide’ it and you are less likely to be tempted.

Remember before Credit Cards most of us had to save up to buy that special something. Idea : Pretend that you did not get the raise or pretend your wife did not go back to work. Then put the proceeds into a separate bank account (or get your employer to do it) and carry on as you did before. You will not miss the money!

This simple idea can be the start of an effective budget With some prioritizing and fine tuning as outlined below the results can be staggering.

Most people do not have a budget. Every successful business has a money plan. This is what a budget is, a plan for your money, you telling it what to do instead of it telling you what to do. With a budget you can set and achieve your financial goals. You will also get a better view of what your money can do for you now and in the future.

Usually people just pool all their funds and simply take it and spend it without regard to its priorities or limits. At any one time they do not really know if they can afford to or should buy something. For example a night out with friends could jeopardise the next weeks rent or mortgage payment , but they may go out and be blissfully unaware or unconcerned about their bank balance. They could well get a nasty surprise later.

Teaching Children About Money Saving

admin — Sat, 11 Jun 2011 08:42:27 +0000

Money is a hard thing to come by these days. Jobs in this world are scarce because everyone is looking for one and the competition is stiff. You have to be at your best in finding a job and holding on to your money. The same goes for children. Parents should spend some time teaching children about money.

Is is necessary to teach them about money? You bet. Children want to have money of their own, when the finally learn what it is good for, and so they should. But, teaching them the right way is the most important thing. Money has value, and, if not used wisely, can be gone in an instant. This economy is a very good example of that.

Too many times have people seen families that have good cash flow just lavish their children with money and objects. And, when the money is gone, they just give them more. When they become adults they haven’t learned how to deal with less, and therefore are poor managers of money.

Those that are taught at an early age how to save their money, and spend it only when needed are going to be able to live on their own it leaner times. It is these children who are told to save their money for a rainy day and not spend needlessly that will survive in hard times.

Teaching children about money is a very wise thing to do for their future. It ensures they will become responsible and good money managers. Not teaching them the value of the dollar and saving will make sure that they are irresponsible and will rely on others to give them whatever they want.

They do not become independent and resourceful. Parents have a duty to their children to speak to them about proper spending and saving.

Reasons Why You Should Be Saving Money and Spending Less

admin — Thu, 19 May 2011 01:53:54 +0000

In today’s economy it is important as ever to learn to save money and spend less. There are many ways to save money and if you are accustomed to freely spending your hard earned (or inherited) money than making this kind of change can be a challenge. For some it is a matter of survival and even life or death. Why should you start saving?

A lot of young people don’t think about their retirement, but it seems like yesterday I was 25 years old and people were telling me to save for my retirement and I thought to myself, that is so far away, I am not going to worry about it now. Well I am now nearing 50 years old and I am definitely thinking of my retirement and think about what could have happened if I started in my 20′s.

So maybe you are raking in the money and have a great job. Well in these times you can’t count on that job to last forever. You don’t know if you will walk in on Monday morning and you could be handed a pink slip. Or maybe you own your own business. You never know what the future will bring and there could be a downturn in your business.

That “American dream” of owning a home isn’t even anything you can count on anymore. It used to be you can buy a home and count on some kind of appreciation. The average person was able to own a home for 20-30 years and be able to sell it and make enough money to fund a large portion of your retirement.

You never know what your future will bring, you might become ill and not able to work, you may suddenly find yourself supporting yourself (and maybe children) on half of what you used to because of divorce. Maybe there will be massive inflation and everyday staples will become unaffordable to the average person.

I realize all this sounds like doom and gloom but it really is only meant to bring up possible scenerios that alot of people don’t want to think of. There is nothing wrong with a little planning in advance for a rainy day.

Quicken Deluxe 2011 – Saving Money

admin — Sat, 30 Apr 2011 11:00:07 +0000

Quicken Deluxe 2011 provides you with the tools you need to manage your money more effectively. By combining colorful easy to understand graphs with automatic categorization you can easily see where your money is being spent.

All of us could use a little help with our finances and this software gives you everything you need to accomplish this. From creating a budget to paying bills on time this software has you covered.

It’s easy to get started with the set up guide that asks you a few simple questions and then gives you a accurate picture of where you are financially and more importantly where your headed. Spot problem areas before they become a major financial headache.

Never has managing money been more important than it is today. It is crucial for families and individuals to know where they are spending their money. Stay on track with your goals to eliminate debt, save for college or retirement or invest in an emergency fund with a individual plan that is right for you and easy to follow.

Stop worrying about your finances and take action to ensure your financial success with the tools and features you need to manage your money smartly. Your Quicken Deluxe 2011 will be tailored to meet your individual needs and goals.

Simply your finances by having access to all your accounts in one place. Checking and savings accounts as well as credit card, investment, college savings and retirement accounts are password protected to keep you safe and worry free.

Eliminate worry and stress during tax time. Software works with Turbo Tax to provide you with the correct information you need.

Your satisfaction is 100% guaranteed with Quicken Deluxe 2011. Free support is included and the Quicken Live Community feature allows you to get the help you need from other experienced Quicken users.

Visit Money Saving Software to discover special deals and discounts on Quicken Deluxe 2011.

Why Start Young With Saving Money?

admin — Tue, 19 Apr 2011 16:09:31 +0000

What does it take to encourage a child start saving as early as 5 or 6 or perhaps when they start going to school and being exposed to money, may it be paper or coins?

I would say that when kids are encouraged by parents through example, it will not be so difficult to parents to convince their kids to save in the future. When there is initiative in the part of a child to save every penny that is left of the daily allowance, then that will be a sign to parents that their growing kid will be a person who will value money, great or small.

There are banks that have saving programs for kids and the minimum age starts at 6 years old. The best thing here for the kids is, while they are able to save as they are growing and on their way to college it will be easier for them to start on their own by the time that they decide to totally be on their own. This means they do not have to ask a penny from mom and dad, unless of course mom and dad will offer to give help or a surprise in the form of money.

So, how are kids motivated to save early on. We all know that whatever the kids will see their parents do that is what they will also do, sooner or later. So, basically when the kid starts to learn about money and they see their mom, dad or both parents’ attitude about money that subconsciously gets programmed in their minds.

For example, when the kid sees her mom splurges on make up, perfume or expensive clothes and shoes too. Soon when she is probably in college or when she is already earning for herself, she might do the same or perhaps a little bit different.

It would be good that parents would explain about spending and saving. Spending is easy IF you are earning for yourself already. Spending really depends on what you are spending on. Expensive items are supposed to be explained as little rewards after working for a long time. Spending on luxurious things is not a hobby like collecting things. It is okay to spend on luxurious items as long as it will not instantly drain your savings. Saving is the best thing that anybody could do because that would mean we do not have to loan either from banks or even friends. Being able to save is supposed to be one’s pride because it would show others that you are responsible enough to value money.

Money Saving Tips

admin — Mon, 04 Apr 2011 12:09:30 +0000

Money saving habits are subject to lifestyle and can be cultivated over a period of time. It is not necessary to give up on all the pleasures of life. In fact, a few minor adjustments and awareness of expenses can help people save a considerable amount of money. By utilizing various money saving tips to their advantage, people can build a net of financial security without sacrificing the kind of living they enjoy.

The major block in saving money is the total debt accumulated by an individual over a period of time. It is possible for students to have credit cards, which implies that individuals are sucked into the vicious cycle of debts quite early in their lives. It is possible to come out of debts with disciplined spending and saving. However, applying every expendable penny to existing debts is not an answer for saving money. Rather, emphasis must be laid on emergency savings and variable expense savings in order to achieve long-term goals of remaining debt free. If all the extra cash is utilized in reducing debts, then there will no reserve left for unexpected expenses such as car trouble or medical expenses. Therefore, it is necessary to put aside a certain percentage of a total regular income for urgent cash requirements.

Money saving can be done via various methods such as depositing a certain amount in a savings account or investing in a safe fund. Putting a check on unnecessary expenditures also goes a long way in maintaining a healthy money saving regime. Impulsive shopping, frequent withdrawals, and lack of any long-time investment plan can further hamper any money saving plans. People can invest in life insurance plans, annuities or mutual funds as a way of making compulsory monthly savings. They can also choose to automate the installments or investments for these plans that will insure that the money is not spent elsewhere.

The awareness towards saving money has increased drastically, which is why many easily accessible sources offer money saving tips. Many of these tips can be easily found on the Internet or a financial advisor can be consulted for professional guidance.

Small Business Retirement Plans

admin — Tue, 29 Mar 2011 16:16:14 +0000

Present alternatives help small business owners save a noteworthy amount of money in tax-deferred small business retirement plans. If you’re seeing or running your own business, think big when it comes to saving for retirement. Oftentimes with all the excitement around setting up a company, one tends to forget about retirement plans for them and their employees. Don’t disregard setting up an own retirement plan because fortunately, there are major benefits to small business retirement plans that compensate the time it might take to set one up.

Small business retirement plan does not only allow a business owner to sock away a considerable amount for the future, but it also takes a sizeable tax deduction as well. Small business retirement plans can help fill in any personal savings gaps toward a more financially secured future. What are the benefits of getting small business retirement plans today for business owners? First, they may be able to take a tax deduction just for saving money for the future, secondly, all earnings on their investments grow tax-deferred until withdrawn, and they can include their spouse if they work together and also have a major advantage to offer employees nowadays or when their business gets bigger.

And what about the employees of your small business, are you finding it hard to have savvy employees working for you? The problem might just be on the small business retirement plan presented; it might not be appealing to your employees. So where does one start? Here is a rundown of small business retirement plans option for your employees, based on 2006 rules and requirements, the best plan however, depends on ones needs:

Simplified Employee pension Plan (SEP IRA)

For a handful of employees and looking for a plan that is really low cost and low maintenance, consider this plan. The SEP IRA is funded with tax-deductible employer contributions that cover all eligible employees. Contributions from employees are not allowed. There is no “plan document” and filing annual reports with IRS are not needed. Contributions can differ from year to year, so if your business hits the lean, you are not locked in.

Savings Incentive Match Plan for Employees (SIMPLE IRA)

These retirement plans are good for your employees because they allow employee contributions. They command an employer match, only problem is it will not allow you to sock away much for yourself. Annual contributions for 2006 are generally restricted to $10,000 plus an employer matching contribution. If you have a small business with less than ten people, then these small business retirement plans for your employees is a good way to get started.

There are many other small business retirement plans offered for both the owner and employees that can do a lot of good to the business. Also remember that in addition to small business retirement plans, you can also fully fund an IRA and create catch up contributions if you are fifty years old or older.

Buying a Car and Saving Money

admin — Fri, 25 Mar 2011 14:33:16 +0000

Aside from their home, most Americans will spend more money on their car than on anything else they will buy. And yet, when it comes time to buy that car, most people spend far more time researching the engine, the stereo and the moon roof than they will the finances of the purchase. By failing to do a little homework on the finances, many people end up spending more money for their car, truck or van than they otherwise might.

A little bit of work ahead of time can help you save quite a bit of money on your car purchase. Here are some tips that might help:

Check your credit report – A few months before you decide to buy you should check your credit report for errors. Mistakes on your report could adversely affect your credit score, which will prevent you from obtaining financing at the lowest possible interest rate. While you are checking your credit report, check your credit score, too. That way you can avoid an occasional scam where the salesman tries to trick you into paying a higher rate by falsely claiming that your credit score is too low. You can’t fall for that one if you know your score. Arrange your financing in advance – While you can sometimes get competitive financing from the dealer, you may do better at your bank, credit union, or online lender. Check with those sources ahead of time to find the best possible deal. Watch for factory incentives – Sometimes, the manufacturer will offer inexpensive financing. In the past, such deals have gone as low as 0%. If such a deal is available, no bank or credit union will be able to match it, so keep an eye out for such incentives. Cash back bonuses are often available from the manufacturer, too, and those can be applied to your down payment. Check the pricing – A number of Websites, such as Edmunds.com, offer information on pricing. With that information, you can negotiate the best possible deal. Ponder the extras – Undercoat? Extended warranty? These are things you may wish to consider before the salesman asks you if you want to buy them. Whether you do or not is your own choice, but you don’t want to get caught with the extra expenses if these are things you do not need.

Buying a car need not be a complicated procedure, but it works best if you know ahead of time how you intend to go about it. The better your preparation, the less harrowing your experience of buying a new car will be.

Saving Money – How Does Quick Access To Money Affect Your Spending?

admin — Thu, 17 Mar 2011 01:00:33 +0000

Having rolls of cash in your pocket when you are out on the town is not a good idea. If you had that money safely tucked away at home or even in your bank account, it might just save you from spending it. I personally like to go out with a minimum amount of cash, even without any cards that could even give me access to the money. I know I am an impulsive buyer and could happily spend any amounts of money on absolutely nothing. So the answer for me is to simply not take the money with me in the first place.

Easy access to your money is not a good idea.

Having easy access to your money is a recipe for disaster. Being cashed up will give you a choice to actually spend your money, whereas having no access to your money would leave you with no choice to spend anything. It’s not just about carrying money in your wallet or purse, it’s about being able to get to it at all. You shouldn’t even be carrying a credit card or easy access eftpos card unless you are a long way from home.

Tips to avoid having access to your money?

1. The main tip is to not to carry too much money in your purse or wallet. Just don’t take it out! It’s that easy.

2. Do not keep money in bank accounts that are easy to get to. Lock your money away in non-accessible accounts. Make it hard to get to.

3. Pay extra bills if you have extra money. Do this before you can spend it.

4. Freeze your credit into a block of ice. Just be careful with that as my husband took my credit card on a fishing trip to keep the bait cold and fresh. I did not appreciate the smell when I finally got it back.

5. Talk to yourself! Ha Ha Ha… No I am not joking. Talk to yourself in your head, silently, and stop yourself from accessing your money. At least it will make you think twice.

Simply having money in the house can drain your savings, especially if you have children. Any loose change hanging around my house is swallowed up into never never land. Never to be seen again. However I find that if I do not have it there, the children seem to survive quite nicely. They really do not need to money, but use it because it’s there.

If you can try and cut down access to your money, I guarantee you will save money and spend less. Give it a try!

Saving Money Versus Spending Your Money Freely

admin — Mon, 14 Mar 2011 17:22:09 +0000

Recently my niece’s 21 year old friend died in a car accident and my niece mentioned that he had already lived life to the fullest. He had inherited $120,000.00 and immediately started living like a king. He had no regrets, and as fate had it, he got to enjoy his inheritance just in time. People remember what he did with his money and now smile. He enjoyed himself.

Now I am thinking, what if I died tomorrow? Would I have any regrets about being strict with my money and not living the full life I could. Of course it’s not that serious but I cannot help but ask the question. Am I living life to the fullest or I am caught up in the day to day need for money? Should I be spending my hard earned bucks more freely if I need to, or should I still save it for a rainy day.

Why should you save your cash?

Save for the “just in case” as the economy is unstable. We should hold onto our earnings because it is hard to get in the first place. We should build our savings because the more you have the more you get.

Why should you spend money?

You might die tomorrow and you cannot take it with you. You might miss out on some great experiences. Money is not the be all and end all of life.

Will spending or saving your hard earned cash make you happy?

This is a questions I often ask myself. Should we be spending what we earn and having a bit of fun, as we work hard for it, or should we be saving it? Everything costs so much money now days. Even to give your family a simple camping holiday is not cheap any more. Really what can you do? Just simple living costs probably take all of your spare cash anyway. Are we in a catch 22?