Monday, May 12, 2014

Financial Journal 2

Currently, I am doing a catch-up toward my retirement and plan to retire in 5-8 years. I would love to work at least until I'm 66 so that I can at least collect the full Social Security. I have a couple of retirement plans at work. Still, relying only on these sources won't make me financially sound in my golden years.




Although I have been wanting to do it for years, I've finally started investing in the stock market. That is where you will get better returns than savings and checking accounts, money markets, CDs and almost anything else a bank offers. My eyes were opened at 3am one day when I was watching this!




I had just opened a couple of CDs at my bank and now I am committed for 3 years for a mere 1.4%. For the same amount, if I had invested in stocks or mutual funds, I could have made at least 4%. Yes there are risks, but life is all a risk.




It doesn't take much to start investing. You can start little and get committed to contribute in a period of time. A good start number is $1000, and here are 5 Simple Ways to Invest $1,000 now.




When it comes to finances, education is a must. But money can be made and saved by reading beyond the personal finance books.


To start investing, you must have both short and long term goals. The long term will deliver the better rewards. To set goals, you might want to consult with a financial advisor, or do intense homework. Just be realistic and not clueless when it comes to money.


Know the basics of retirement planning whether you are in your 20s, 30s, 40s, 50s, and even in your 60s!







Sunday, May 4, 2014

When Saving Isn't!

I try to give advice on saving money by living frugally. For the most part I intend to empower you to save, make, and stretch your money as much as possible. Sometimes the ways we think we save money, are the ways that can actually end up costing us.


The coupon clipping was something I was aware of, but they can save you, if used on the items you need. Keyword is NEED!


Avoiding all budget saboteurs will keep your budget in check. When cutting items from your budget, cut the ones you truly don't need or can cut back on.

Saturday, May 3, 2014

Spending Freeze

Spending freeze is a great way to save some cash. I am trying to reach a 2-week spending freeze, but so far I have gotten to 4 days without spending. It does require some planning and discipline. The savings in the long run can really add up.


You can find tips on freezing your spending and how to get started. Depending on your current spending habits, successful spending freezes require planning. Start stocking up on food and eat at home and take your lunch to work.


Fill your gas tank and drive only to places you truly must. If you're not planning a vacation, you should take a 2-week vacation from work. This will cut the work travel. A vacation can also make a 2-week freeze a bit easier.


What doesn't count in a spending freeze are essential bills like rent, utilities, etc., unless there is a two week period where no bills are paid.


In the end, I consider any day that I make money and don't spend money is a victory. Many times I watched my weekly budget roll into the following week. I have banked and invested quite a savings.