Simply Junior

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.

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.

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.

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!

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?