saving money

How to Become Filthy Rich

 

Saving money is about a number of other things than just negotiating at the top of your voice. You must check out your attitude towards saving money. You may certainly be one of those people who doesn’t fit into the category of filthy rich. Apart from money, personal finance has something to do with your traits. Frugal ways have already been adopted by a number of millionaires, few of who’re celebrities. Understanding the ways in which your financial situation gets affected by your personal traits is your key to accumulating wealth.

Check Out a Few Important Traits:

Discipline

You must prove to be a disciplined investor if you really wish to save money for meeting your end objectives. Personal finance has to be studied in details if you really wish to turn rich in the long run. Actually, it’s all about executing the life plans in a disciplined manner.

Patience

When it comes to saving money, you must have more patience. Exercising a bit of patience holds you from landing into debt and helps you save more. You’ll achieve the cornerstone of great finances once you have the much-needed patience of identifying a great deal.

Risk-Taking Ability

You’ll need to take certain risks if you really wish to acquire wealth. However, you shouldn’t take uncalculated risks. You must consider all the options that you may fall back on and take risks after doing your homework.
The risk element is there to be dealt with by those that participate in the stock market. But if you invest your savings in a wise manner, you’re bound to catch up with great returns in the long run. If you’re among those that fear the overall risk, you may end up saving money in accounts that are bound to be affected by inflation.

Creativity

All of our expectations aren’t matched by our income and our economy. Our financial plans are often disrupted by certain unexpected developments. You must prepare yourself to deal with fresh circumstances. A lot of creativity is needed to ensure financial stability instead of procuring things in haste.

Result-Oriented Action

It’s truly important for you to set a goal and work towards it. It’s truly difficult for you to reach your destination when you aren’t aware of where you’re heading to. For those of you that have financial goals, you may achieve an immense personal finance boost. It will even help you stay motivated and achieve all the goals that you’ve set on your own. It won’t be possible for you to reach your financial destinations very easily if you lack goals and lack a vivid roadmap.



Combining Smart work with hard work

A lot of hard work gets in stake when you’re attempting to steer clear of debt and generate wealth. Some of you may simply start believing that by acquiring a lottery, you might get rid of some financial problems. However, the right path to accumulating wealth is through working hard and acquiring advanced skill sets.

Your knowledge is likely to get reflected in your growth and success. You may not possess some of the traits that the others do, but you must adapt to changes. Once you nurture a few inherent qualities, you’ll soon find out ways to identify your areas of opportunity and acquire all necessary skills that aren’t present in you. Most of the skill sets that you acquire will assist you in managing your finances more efficiently and also acquire more wealth.


Saving Money the Tried and Tested Way

Do you think your financial position is hopeless? If you have a large balance of credit card debt and you struggle to pay your bills each month, you may begin to despair. Your daily life will become one of stress and that is even before you start to think beyond the short term and how you can possibly live comfortably in retirement. Doing nothing really isn’t an option but where do you start? There are a number of ways that people have saved money in the past, most of which are not too painful, and you need to ask yourself whether you have the determination and self-discipline to try them. Even a small daily saving adds up over time and the longer you persevere, the better you will feel, and the healthier your savings will look and will help people to reduce their debt problems they are facing because of over borrowing from high-interest lenders.

Setting Targets

You need to set yourself some targets but not set them too high so you get discouraged and give up. You need to analyse your existing habits. Likewise, creating a surplus each month by using your credit card more is simply transferring the problem on to your card. There may be short term relief but it is no solution. The secret is to change your habits as painlessly as possible.

‘’Luxuries’’

Why not charge yourself a fee for each ‘’luxury’’ you afford yourself? ‘’Luxury’’ is a broad term. You may not regard a beer as a luxury but if you resolve to set aside a dollar against each beer you drink, then you may build up a small fund, and possibly even have one less than you would have ordinarily. Not a bad thing! If you put those dollars aside every few days, you won’t notice they are gone.

Perhaps you can think of our small and regular purchases instead? The choice is yours and many things can be equally effective.

Out of Sight, Out of Mind

If you set up a system whereby money is always transferred out of your checking account into a savings account that is less accessible, you may even gradually forget that you have any more to spend in the month than the amount after that transfer. Ideally your savings account will not be in your bank so that any spending you make on your debit card cannot be taken from your balance.

At the end of the Day

Take a look in your wallet and pockets at the end of each day. You could put your coins, dollar bills and even $5 bills aside. If you put them in a jar the money will soon accumulate. As it builds, it will be tempting to dip into it so decide on regularly depositing that money into your savings account to remove that temptation.

If you enjoy seeing your money rise like this, you may even start to leave your credit card in your wallet and start to use cash more often so that you have some to set aside. That in itself is a good habit because you are not going to increase your credit card balance as quickly as you otherwise might do.

The Coffee Shop

Do you really need to go to one of these famous coffee shop chains each morning for a fancy drink? You will obviously have coffee in the house so you could take your drink to work. Some of these fancy coffees are not cheap but are you paying for the brand name?

Some Savings a Little Harder to Make?

• If you are taking a coffee from home, you might just as easily take your lunch. You can easily work out how much coffee and lunch is currently costing you. You will find it so much cheaper to take a healthy sandwich with you and by the end of the month, the dollars will add up.

• While this is not practical for everyone, walking to work is both healthier and cheaper. If you currently drive only a short distance, then you save on fuel while if you drive to the station and park up to then commute, get up earlier and walk. You’ll also save on parking charges.

• Apps will help you keep track of your spending, and budget in general. You can start to price check and even get refunds if you have paid too much for an item.

Conclusion

Some things are easier to do than others. However, if your finances are currently in a mess, you have to try at least some of them. No one has an excuse that they can’t make a coffee and their lunch, even if it is only every other day; it is a start. The more success you have, the more encouraged you are likely to be, and as a result, determined to continue. Think of the stress draining out of your body!

image source: https://cdn.pixabay.com/photo/2013/07/13/11/32/moneybox-158346_960_720.png


Hidden Secrets to Saving for Retirement

Hidden Secrets to Saving for Retirement

Gone are the days where you worked for a certain number of years and had nothing to worry about when it was time for you to retire. Now, in order for you to have a nice-size nest egg, you need to start saving for your retirement as soon as you start working your first job. The average person doesn’t give much thought to their retirement when they are just starting out. However, that doesn’t mean that it is too late for them to start today. Here are some tips and tricks that can help anyone save for their retirement so they can live a comfortable life, not an impoverished one.

Calculate Your Needs

You need to have a realistic picture of how much it is going to cost for you to support yourself once you retire. Don’t assume that if you stick with your employer long enough that you are automatically covered. Take a look at your retirement savings and do the math. Don’t forget to account for the cost of living and inflation. Ideally, you should expect to save up enough money to replace up 60 to 80 percent of your pre-retirement earnings.Brush up on your financial knowledge by readingbooks and surfing the internet on how to start planning for retirement.Fisher Investments Plan Your Prosperity by Ken Fisher lays out what to consider you should consider when planning for retirement. On the internet, Business Insider has a list of the best online financial websites. You can’t do too much research!Don’t forget to check out other sources of information as well.retirement

Check Out What Your Employer Offers

Many employers offer their workers a 401(k). This type of account can be a significant source of your retirement savings if you utilize it properly. Since most employers match a percentage of their employees’ contributions, increasing your own contributions can really pay off. You are essentially getting free money to improve your quality of living in the future.

Many entrepreneurs, independent contractors, and self-employed professionals do not have a 401(k). However, there is an alternative that they can still take advantage of: IRAs. There are two types of IRAs:traditional and Roth. Just like 401(k)s, you can contribute money to IRAs and watch the money grow without being offset by taxes. Just stay mindful of the limits and rules that govern IRAs. For example, the maximum contribution anyone can make to their IRA for 2016 is $5,500. Anyone who is 50 or older can contribute up to $6,500 a year.

It is also possible for you to have a 401(k) and an IRA. If you do, plan your contributions so you can enjoy all of the advantages and increase your retirement savings significantly.

Mutual Funds

Learn what you can about mutual funds, especially target-date ones. Target-date mutual funds can be great investment tools if you utilize them correctly. For example, the “target date” mutual fund uses the date you plan to retire and adjust risk. Once invested, the mutual funds regularly invest into products with consideration to your situation in life.

Social Security Is Extra

Think of social security as dessert. Since you don’t know how much of it will contribute to your monthly income, it is best to leave it as a possibility, not a complete certainty.

Investment Options

There are other sources of retirement income available; however, most require you to make an initial investment. Many of these options do not pay right away. In fact, many of them offer a bigger return on your investment if you are willing to invest for longer   periods of time. Talk with a financial adviser to learn more about your options. Investing for retirement is not as hard as it sounds. With the right amount of knowledge, guidance, and options, you can grow your retirement savings while you sleep. p>

Don’t Touch Your 401(k) and IRAs

If you switch jobs, you may be tempted to cash out your 401(k) or IRA. Not only is this a bad practice, it is one that can hurt your retirement savings efforts tremendously. Instead, a much better option is for you to roll your 401(k) over to your new employer so you can continue what you’ve started to avoid having your hard-earned money taxed at 10 percent and penalized by the IRS at 7.5 percent. IRAs also have age restriction rules that you need to be aware of.

Save Your Windfalls

Every now and then you may receive a bonus from work, a raise, or even win the lottery. While that extra money can help to increase your comfort and financial situation now, they can be more beneficial if you add them to your retirement savings.

Once your retirement savings reach $75,000, you’ll find that increasing it is much easier. Plan your savings decisions wisely and you’ll be able to reap the benefits when you retire.


How should you celebrate a month when you have saved up?

How should you celebrate a month when you have saved up?

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Image via Flickr

This doesn’t happen every year. You don’t get to count many months on your fingers when you have actually gone one up on your expenses. Consider the rent, food bills, electricity bills, entertainment costs, commutation costs, college fees and other debts. Your expenses are always on the rise and it is not easy to save. So, what exactly do you do when you actually end up saving a month- may be by cutting off the entertainment costs, or by ditching the public transport in favor of the walking? After all, you have done it! Any which way you have done it! And, it is extremely important to celebrate your financial victory as well.

Your celebration begins!

And, how exactly do you do it? By becoming more financially aware. Let us explore more in this regard. It is important to acknowledge your efforts – the steps taken by you towards fulfilling your financial goals. You don’t necessarily need to turn to the huge volumes of Economic books in a bid to understand how difficult it is to save. So, reward yourself when you have actually been able to do that.

What you need to be aware of

A part of your celebration is largely about tracking down your needs or financial obligations that you have not been able to fulfill so far- keeping your regular expenses in view. Come to think about it. Is there a debt which you can get rid of with the help of the savings you have made? Becoming debt-free itself is way of celebration. Don’t you think so?

If you don’t have any such debt as that of the aforementioned one, then consider investing a part of the savings in doing something fruitful- a life insurance policy (if you don’t have one) comes to mind immediately – but then again you need to consider the monthly, yearly or quarterly premiums as well. If there’s no assurance that you will be able to save as much every month as you have been able to do now then it would be advisable for you to give more time to this decision.

Do the needful

It is very important to identify areas where you have been able to save. Would you be able to continue with the money-saving measures that you had resorted to this particular month? What is it that helped you save up? Did you use your electricity more wisely? Did you cut down on your entertainment costs? Is it possible to continue with these efforts in the coming months as well? Identify all the avenues of savings so that you can actually embark on a more organized financial goal.

Please make sure you are keeping these points in view. Hope this has been a fun read!


Storing Fuel Safely, Securely, And Legally

Whether you’re setting up your own taxi firm, run a racing team, or store fuel for any other reason, you need to ensure that you store it safely and securely, while also complying with legal regulations and requirements. Buying fuel in bulk enables you to save money, but you shouldn’t overlook the value of investing in good quality storage equipment. A jerry can is a viable means of storing a very small amount of fuel, and for a relatively short space of time, but isn’t suitable for larger volumes or longer periods of time.

Storage tanks and drums are made from different materials. Biofuel tanks tend to be made from a low density MDPE plastic. This material is resistant to the biofuel stored in the tanks, and capacities of tanks, from companies like Commercial Fuel Solutions, can vary from 1,000 to 10,000 litres.

Steel tanks tend to be used for the storage of a large amount of fuel, while MDPE plastic may also be used. MDPE plastic has become a popular choice because it is lighter and easier to work with than steel, but resistant to the materials that are placed inside.

In some cases, it may be a legal requirement that you have a bunded tank. This means that there is an additional layer of tanking around the outside of the primary tank. This helps ensure that spillage and leakage does not seep out of the tank and into the surrounding ground, and it can also prevent noxious fumes from the fuel getting into the local atmosphere. Even where a bunded tank is not a legal requirement, for example in some domestic storage cases, it is worth the additional investment in order to enjoy total peace of mind.

Running your own generator, converting machinery to run on alternative fuel sources, and even storing your own fuel for use with machinery and other items can save you money over the long term. However, you should be prepared to invest in appropriate storage equipment that is not only safe but that ensures the integrity of the fuel inside.

Some storage solutions offer additional safety and other features. Gauges can tell you how much fuel remains, while dispensing equipment makes it easier and safer to dispense the fuel when it is needed. A locking lid, inspection points, and security measures like tank alarms and bund alarms can also be fitted and these offer even greater security and peace of mind.


Five Easy Vehicle Repairs That You Can Carry Out at Home

When it comes to saving money, every little helps. A major source of expenditure for modern day car owners is vehicle repairs. For the unfortunate, these can cost thousands of pounds per year, and when you’re working on a limited budget, this is far from ideal.

However, a lot of us are paying for repair work that we could really be doing ourselves. Although contemporary vehicles are highly complex pieces of machinery, some tasks remain simple enough and easy enough to do in the comfort of your own garage.

Here, we look at five jobs that you really shouldn’t be paying for…

1: Replacing Spark Plugs

Replacing your spark plugs is one of the easiest automobile repairs around. With spark plugs available online for next to nothing, fitting them at home is a great way of saving on the cost of both labour and professionally sourced parts. Not only will you be able to save money on the job itself, but you’ll also find that replacing existing pieces will improve your fuel consumption, helping to keep more pennies in your pocket.

2: Replacing Windscreen Wipers

Another job that you should always do yourself is installing new windscreen wipers. Nice and easy to carry out, this procedure involves no more than replacing the worn out strips of rubber on the wiper with new ones. Provided that you have the parts and a trusty screwdriver, you’re all set to go.

3: Replacing Headlight Bulbs

Fitting new headlights is another task that’s cheap and easy to do at home. When headlight bulbs burn, they require replacing, and garages charge far more than they need to in order to carry out such a simple task. To cut out the middleman, simply source the correct bulbs from the internet and get to work yourself.  DRV109-1030x773

4: Fixing a Dangling Exhaust Pipe

When your exhaust pipe begins to dangle, it’s often because the rubber loop that supports it has become damaged. This can look quite serious, and most people imagine that it will take a lot of work to correct. Luckily, they’re wrong, and it’s another job that you can do yourself. All that you need to do is substitute the damaged pipe holder for a new replacement, and then you’re all set to drive off into the sunset.

5: Replacing Brake Pads

Last but not least, always be prepared to change your own brake pads. Although keeping them up to date helps to reduce your risk of accidents and injury, this doesn’t mean that caring for them is complex. With the help of an online tutorial, c-clamp, lug wrench, hammer, and jack, you can take your braking system to pieces and put it back together in top condition.

Keep your garage well stocked with a chest full of tools to save yourself some money this year.

 

 


How to start saving for your child’s college education

Saving money for one’s financial future is not always an easy task. When it comes to putting away funds for children to go to college, it is important to know that options are available to ensure that they have the best chances to succeed.

Knowing the right tools can be vital, as making mistakes can end up costing families dearly. According to Bankrate.com, not keeping in mind that some savings accounts have taxes attached when reaching a certain point can really hurt more than help.

“In the federal formula that determines how much financial aid a student receives, there are asset protections for money in a parent’s name that are not there for money in a student’s name,” said Robert Helgeson, director of financial aid for Valparaiso University in Indiana, according to the news source. “If a parent has $100,000 in assets, the government is going to expect them to contribute $6,000 of it to education. If a student has $100,000 in assets, the government will expect $20,000.”

Financial_plannerMultiple options available

Instead of using a plain savings account, it may be a good idea to check out the 529 college plan. The news source explained that these accounts work similarly to retirement plans, and they accrue funds without being taxed. Depending on the type, the plan may invest aggressively at an early age before leveling out as the child ages.

Though 529 accounts are set up to pay for college, parents may not want to cease contributions at the point of acceptance into school, U.S. News and World Report showed. This is due to these tools being useful for those who want to continue to put money toward their child’s education and not be hit with tax penalties while they are in school.

Using an IRA also is a possibility. According to BabyCenter, these options are not just for retirement, and they will help lower taxes, with some contributions being tax deductible. It is important to keep in mind that using this as a part of a personal finance plan will have taxes deducted once money is withdrawn.

Looking toward a number of options may be the best way to tailor a financial strategy that gets a child through college as painlessly as possible.

 

 

 


How to Save Money When Buying a House

If you’re a first time buyer, a property will usually be the most significant purchase you have ever made. Those looking to buy homes should be aware of all the costs involved and make detailed budgeting plans to avoid unforeseen financial pitfalls. There are ways that you can save money when buying a new home, and below are listed a few of the basics.

Get Clued Up on the Costs

Buying a house isn’t just about the deposit and the mortgage payments. You should also be prepared to pay your lender an arrangement fee of typically £1,000. Your lender may also expect you to pay a valuation fee that covers checking the property exists and offers sufficient security for the loan in question. If the property is more than £125,000, you will have to pay a percentage of the price in Stamp Duty. Many buyers will pay to have surveys done on properties that they are interested in, even if the sale falls through. Surveys usually cost between £400 and £700 and it’s important to budget for two or three.

Choose an Online Estate Agent

You can save money when buying a house by choosing an online estate agent. Many agents including the House Network will provide you with a one-stop service that cuts out many fees charged by traditional estate agents. If you’re going to go with an online estate agent, make sure you ask all the relevant questions about the kind of sales they can offer you and compare a number of quotes before you make your decision.Closing Steps, How Closing Costs Affect You

Moving Day and Home Repairs

Look for the cheapest and most reliable moving company, or enlist the help of friends and neighbours to move heavy items of furniture and rent a van independently. It’s best to go with a removal firm that comes with plenty of good recommendations. Many first time buyers find that when they arrive at their new home, there are plenty of DIY tasks that need to be completed. If you’re on a tight budget and haven’t got the cash to spend on an extensive remodel, look online for DIY tutorials and attempt all minor fixing-up tasks yourself. Remember that you only need to call in a tradesman when it’s absolutely necessary, for example with electrical and plumbing work.

Save on Conveyancing Costs

Don’t automatically use the conveyancing firm that is attached to your estate agents, but use the price they charge as a benchmark. It’s important to shop around for quotes and use price comparison tools online to determine which conveyancing service is most suitable. The firm doesn’t need to be in your local area, but it does have to be accredited by a regulatory body.


How To Save More Money And Boost Your Finances

The year is 2014 and the financial climate of the world is only getting worse. More and more jobs are being cut and employers paying less and wanting more time and work from employees. The cost of living seems to be soaring and with a paycheck that doesn’t increase, many people wonder, how can they save more money or at least cut down on their expenses. Not to worry, this article will outline some of the easiest ways you can instantly save some money and improve your financial situation.

planning_budgetThe first thing you can do is refinance your home. You may be doubtful of doing this; however, this can give you huge savings on your current mortgage in the long run. Sure you will pay more on the monthly for a period, however, in the long run, you will save thousands of dollars.

The next method to save money is to cut your grocery bills and food expenses. The first step is to reduce how many times you eat out and drastically cut this to the bare minimum. Instead of wasting hundreds of dollars in restaurants or bars, buy all your food at the grocery and market. You can save even more money at the grocery if you collect coupons and use these to purchase essential items in bulk and save hundreds. The television show, “ Extreme Couponing”  will show you exactly how little you can spend i.e. less than $20 at the grocery but get a basket full of groceries. Also, there are usually days that you can get discounted fresh produce from the market – usually the day before they get new stock and you will get fruits and vegetables for less than half of their original cost.

The third tip to drastically cut your monthly costs is to disconnect your telephone service. This may seem shocking at first, but I promise, you don’t need it! Once you have a good internet connection, you can use a device such as the “ Magic Jack” to make calls through your internet. Alternatively, you can use Skype or free calling services such as Viber to keep in contact with friends and family.

Another way to save money is to donate your stuff – clothes and household items to an IRS charity. These IRS affiliated charities allow you to donate your belongings in exchange for a reduction on your yearly taxes. However, be sure to keep a note of all the items you donate and their cost so you can attach them when you are doing your taxes for the year.

The last method that will help you to save more money is to cut up your credit cards! Okay, well maybe you won’t be able to cut all of them since modern living requires the use of credit cards, however, you don’t need to have more than 1 or 2. By drastically reducing your use of credit cards, you will reduce your debt and stop spending money you don’t have! Alternatively, you can use a debit card for online transactions and get rid of credit cards altogether.

On ending, you will save thousands of dollars by following the above tips and guidelines. By taking charge of your monthly and yearly finances, you will be taking charge of your life!

Albin Poulsen is a third year PhD student in the Dept. of Business and Economics at University of Southern Denmark. In his spare time, he runs a blog, where he talks about finances, debts, loans and about the economy in general.


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