Why a Mattress Full of Cash Is Worse Than Basic Investments

If you are thinking about keeping your hard-earned cash at home where you can keep an eye on it, you are in good company. While many people actively invest extra cash in the stock market or in other types of investments, you may be worried about your losing money through bad investments, market downturns and more. 

It may seem safer to keep your money at home, but this is not actually the case. These are a few reasons why you may want to consider safe investments, such as CDs or a high-yield savings account.

The Impact of Inflation

While some investments are risky and have the possibility of financial loss, CDs and high-yield savings accounts do not. When cash sits at home, the impact of inflation causes that money to lose earning power. 

On the other hand, CDs and high-yield savings accounts may keep pace with inflation so that your money continues to have the same earning power. In some cases, these investments may outpace inflation slightly.

The Risk of Fire or Theft

Unless you store your cash at home in a fireproof safe, there is always a risk of significant financial loss through a fire or another type of damaging event. Theft is also a serious concern, and some thieves may be strong enough or savvy enough to remove the entire safe from your home. 




While you may lose some cash through a bad stock market investment, you likely will not have a total loss situation as you would in the case of a fire, theft or other event at home.

When You Pass Away

Another reason to consider investing your cash outside the home is related to your death. Death is inevitable, so you need to plan ahead for how your assets will be divvied when you pass away. Preparing a will and working with wills and estates lawyers can help you to create a strategic plan for doing so. 

Funds are more easily and securely disbursed according to your wishes when they are in accounts at reputable financial institutions. On the other hand, cash stored in a safe at home may be inaccessible unless you tell your family what the combination is beforehand. Even then, there is a possibility that some loved ones may pull out cash that is not rightfully theirs.

As you can see, there are several reasons why it makes sense to keep your assets in safe investments rather than at home. Spend time learning about CDs, savings accounts and other safe investments so that you can make a smart decision about how to manage your cash going forward.

Budgeting Magic: How to Make Your Money Work for You

Let your money work for you. We all have heard this saying, but what does it really mean? And, most importantly, how do we accomplish this? It is common financial advice, but it’s hard to imagine. Let’s take a look at some ways it can become reality. 

Retirement Accounts

Everyone needs to have retirement accounts; it’s never too early to invest in retirement funds. The common options are the 401(k) and individual retirement accounts (IRAs). 

Both of these are invested into the market, and this means there is potential for money growth. If your employer matches, always invest up to their match. Don’t give away free money! 

Normal financial advice states that 15% of your income should be invested into retirement funds. The second choice for the remaining amount of your investment should be either a Roth IRA or an IRA. 

Invest in Real Estate

The real estate market can take a little time to understand. If you are looking to purchase a single family home, take some time to decide what home would work best for you and your family’s needs. 

 Professionals, like those at TitleSmart, know that you should be sure that the cost of buying a home doesn’t require too much of your monthly income. Stay below your budget and invest in a property that can be sold later for maximum profit. There is also the possibility of investing in commercial real estate. 

This branching out opens the possibility of making additional money, but it also can fail. The real estate market fluctuates frequently. 

High Yield Savings Account

Before you begin your journey into investing your money, it is important to have a savings account. Ideally, six months of living expenses should be stored away. Using an insured high yield savings account can generate more value. 

Most normal saving accounts only offer an interest rate around 0.01% whereas a high yield is closer to 1%. There are a variety of banks that offer these accounts. 

Live Within Your Means

Millions of people live their entire lives under the strain of debt. Avoiding debt whenever possible is important; it will cost more in the end due to interest. 

Choosing to live a lifestyle that is within your means allows for maximum investment. This means that later in life, your money will have greatly increased and your future is secured.

Making your money work for you doesn’t require you to be rich or to be a financial wizard. Talking to a financial advisor can start you off on the right direction. Remember to invest and pay yourself first.

Looking Forward: Investments, Assets and Your Retirement

Planning for retirement is not something that should be put off to the last minute or after the company farewell party. There are many things to do shortly before you retire and some things you should start as soon as you enter the work force. It is not original, but it is never too early to start planning for your future.

Beginning At an Early Age

If you are just entering the work force and not making a whole lot of money, it is still not too early to get into the practice of savings. Decide to put five percent of your paycheck into savings. 

As your income grows, continue to save. Try not to touch it. This is the first step toward reaching the goal of having a comfortable and enjoyable retirement.

Take Advantage of Any Program Your Employer May Offer

If the company you work for offers a 401K plan, participate in it. Contribute as much as possible to the plan. Usually, there is an option of making taxable or tax deferred contributions. 

Tax deferred may give you a little more spending money when you first begin investing, but it is not going to be a big help regarding income taxes when you retire.

Open an IRA

The individual retirement account allows you to put a portion of your income in an account that will draw interest. The contributions are tax deferred. There is also the possibility of opening a Roth IRA. In this plan, the money you contribute is taxable. However, the money you earn will be tax-free when you withdraw it. 

Regardless of which plan you open, do not go to the nearest bank and take whatever fixed rate is being offered. Talk to a financial adviser or stockbroker and determine how the money can be invested to generate the best yield with a reasonable degree of security.

Looking Forward: Investments, Assets and Your Retirement

Planning for retirement is not something that should be put off to the last minute or after the company farewell party. 

There are many things to do shortly before you retire and some things you should start as soon as you enter the work force. It is not original, but it is never too early to start planning for your future.

Beginning At an Early Age

If you are just entering the work force and not making a whole lot of money, it is still not too early to get into the practice of savings. Decide to put five percent of your paycheck into savings. 

As your income grows, continue to save. Try not to touch it. This is the first step toward reaching the goal of having a comfortable and enjoyable retirement.

Take Advantage of Any Program Your Employer May Offer

If the company you work for offers a 401K plan, participate in it. Contribute as much as possible to the plan. Usually, there is an option of making taxable or tax deferred contributions. 

Tax deferred may give you a little more spending money when you first begin investing, but it is not going to be a big help regarding income taxes when you retire.

Open an IRA

The individual retirement account allows you to put a portion of your income in an account that will draw interest. The contributions are tax deferred. There is also the possibility of opening a Roth IRA. 

In this plan, the money you contribute is taxable. However, the money you earn will be tax-free when you withdraw it. Regardless of which plan you open, do not go to the nearest bank and take whatever fixed rate is being offered. 

Talk to a financial adviser or stockbroker and determine how the money can be invested to generate the best yield with a reasonable degree of security.

Buy Life Insurance

Term life insurance starts out cheap. However, the premium increases over time. If you outlive the term, you or survivors get nothing. If it was an employer's policy, and you change jobs, there will be no refund. 

You can buy a 20-year paid-up whole-life policy for a higher, but fixed, monthly premium. If married, purchase a policy for yourself and your spouse. If there is an early death, the benefits are tax-free and can cover funeral expenses and help with the mortgage payments.

Be Diligent

Check your investments at least every month. Talk to your financial adviser or broker to get their take on where the economy is heading. Do not invest all your funds in one stock or company. At any given time, some of your investments could be threatened by a change in the financial markets. It may be necessary to make some adjustments.

Simply stated, to plan for your future you have to invest money you are earning today. Social Security in some form will be around 40 years henceforth and probably longer. However, it will only cover a fraction of your expenses. Do not buy over your income. That BMW in the showroom looks great, but the Chevrolet will get you to work. 

Think about the things for which you are planning. Is it your own retirement? Are you saving for your children’s college education? Do you plan to move to an exotic island before you are 50? Prioritize and be reasonable in what you plan to do. Watch your investments. Communicate with your financial adviser on options that may develop. Do not depend on a company retirement plan. 

You may have several different jobs during your working career, and the retirement plan may not follow you. If a company pension comes your way, you are ahead of the game. However, if it disappears, you can still be in good financial shape if you start early in planning for the future.

Term life insurance starts out cheap. The premium increases over time. If you outlive the term, you or survivors get nothing. If it was an employer's policy, and you change jobs, there will be no refund. 

You can buy a 20-year paid-up whole-life policy for a higher, but fixed, monthly premium. If married, purchase a policy for yourself and your spouse. If there is an early death, the benefits are tax-free and can cover funeral expenses and help with the mortgage payments.

Be Diligent

Check your investments at least every month. Talk to your financial adviser or broker to get their take on where the economy is heading. 

At any given time, some of your investments could be threatened by a change in the financial markets. It may be necessary to make some adjustments.

Simply stated, to plan for your future you have to invest money you are earning today. A specialist from Pinnacle Financial Partners recommends taking a look at your financial assets as a whole to determine what they can offer for your future plans. 

Social Security in some form will be around 40 years henceforth and probably longer, however, it will only cover a fraction of your expenses.

Think about the things for which you are planning. Is it your own retirement? Are you saving for your children’s college education? Do you plan to move to an exotic island before you are 50? Prioritize and be reasonable in what you plan to do. 

Watch your investments. Communicate with your financial adviser on options that may develop. Do not depend on a company retirement plan. You may have several different jobs during your working career, and the retirement plan may not follow you. 

If a company pension comes your way, you are ahead of the game. However, if it disappears, you can still be in good financial shape if you start early in planning for the future.

The GOLDen Years: Five Financial Changes You Need to Make When You Hit 60

After spending a lifetime building a career and working toward your retirement goals, it can be an adjustment financially once hitting the age of 60. Although you may be used to living a certain lifestyle, financial adjustments may need to be made to preserve your retirement savings and have your needs met. There are a few changes to make to ensure that the funds last for several decades and are well preserved—keep reading to learn about the most influential changes you should make to your finances once you hit those golden years. 

Reallocate Your Investments

To protect your assets, you might consider shifting to low-risk investments to prevent loss from occurring if you feel comfortable with what you have saved for retirement. If you expect to live longer, you can shift to more aggressive investment options for a few years before you evaluate the success and projected future of your investments. Depending on your financial situation, reallocating your investments could provide you will a little buffer cash to put your mind at ease.

Establish Scheduled Distributions

It's important to reassess your budget each year and make adjustments where inflation may occur for the cost of living. Contact your financial services provider to schedule payments weekly or quarterly, which will ensure that you live within your means and preserve your retirement fund. Look for areas where you can and should make adjustments so that you can take care of payments in a timely manner while still enjoying your finances set aside for retirement.

Downsize Your Home

For those who are in their 60s and have children who have moved out of the home, they are likely living in a property that is too large for their needs. After raising a family that is now on their own, it may be time to downsize and reduce the cost to maintain the home. Consider relocating to gated community or condo where landscaping and maintenance won't be a concern and costs for home upkeep will be lower. When it comes to home insurance, the professionals at Underwriters Insurance Brokers Ltd who specialize in Vancouver home insurance suggest that you increase your deductible so that you can enjoy lower monthly premiums. Living in a house that is too big, and paying too much for home insurance will drain your hard-earned retirement funds much faster than necessary, so consider downsizing before too much money is wasted.
Use the Money from Taxable Accounts First

To avoid paying more in taxes with your 401(k)s, make it a point to use the money from the accounts that will be taxed the most after also using the accounts that are not a part of your IRAs or 401(k)s. Using your taxable accounts first will be more efficient, and will keep you from cringing too much when tax season rolls around.

Take Advantage of Tax Breaks

Each state has age-related tax breaks that offer deductions and exemptions for ample savings each year. Research what you qualify for through the state department or talk to a financial advisor to find out what types of tax breaks you might be eligible for. Many people have no idea that they qualify for any tax breaks, so they miss out—do your research and talk to your accountant or financial advisor to see if there are any breaks you should know about or look into.

By making a few financial changes once you turn 60, it can preserve your retirement funds and make it possible to live more comfortably in your golden years. Although it may take time each year to manage your investments and downsize in certain areas, the changes will ensure that you enjoy a happy and healthy retirement while taking advantage of the fruits of your labor.

Looking To Invest? 5 Worthy Causes To Go Into Debt

Whether an individual is looking to invest $100 or $100,000, the principles will always be the same: to make money. This is typically going to be much easier said than done, however, that is why it is important to first narrow down choices. Here is a look at five of the top investing options that may just be worth going into debt for.

1. Indexed Stock Funds

Indexed stock funds are some of the easiest places to invest. While every investment has some risk, these pre made funds come diversified and most leading companies will offer a minimum investment return. Investors simply pick the field or fields that they would like to invest in such as natural resource companies or land development.

This is a great way to get your foot in the game and gain a greater understanding of how to and what to invest your money in and what kinda of returns you are looking for. Many companies will offer these types of investment programs for employees and is something to be taken advantage of.

2. A Hybrid Vehicle

When it comes time to purchase a new car, spending a little extra for a hybrid vehicle could be a great choice in the long run. Hybrid vehicles will not only save on fuel costs, many also now come with government rebates that bring their final purchasing price into the range of traditional vehicles. This is a great option to take a standard item like a car and turning it into a money saving opportunity.

3. Condensing Loans

For anyone that is currently struggling with loans the professionals recommend to check out CreditRepair.com tips and pointer. They recommend having your negative strikes first removed from your credit, then financial professionals can move forward by condensing current loans and reducing premiums and interest. Paying off high-interest loans is still one of the absolute best forms of investment available today. It will not only save you money in interest on the loans, but it is a great way to invest in your future with a higher credit score that will open more doors to you.

4. Higher Education

Taking time to go back to receive an AA, BA, or Masters remains a controversial option for many. Even if some of the costs associated with these degrees can be covered, many students will at least need to take out some lessons, but this is not always a bad idea. Some reports show that each degree in higher education will result in over $500,000 more in wages over the course of one’s lifetime. And many companies will help pay for employees to go back to school and bring those skills back to the work place.

5. Pre-Emptive Health Treatments

Health insurance should be one of the first expenditures for any family, but not everyone realizes just how important pre-emptive surgeries and treatments can be. As with many medical conditions, fixing the issue before it becomes a major problem is often a great reason to spend a little extra. Common options include treatments for the early stages or arthritis, laser eye surgery, and jaw surgery to keep one’s teeth and spine aligned.

Investing does not mean scouring through countless stocks or keeping up with every single market variable. Instead, anyone can set aside some money or even take out loans in order to go to school, update a house, or even carry out important medical treatments.

The Importance of Personal Finance Budgeting

Budget (Photo credit: Tax Credits)

The principles of a sound wealth building system all require the foundation built on personal finance fixus. Solid and consistent budgeting is one of the laws of personal finance that you break at your own expense. Finance is often made more complex than it needs to be, and proper personal finance budgeting to build wealth need not be stressful. Simply by following a few simple basic rules of personal finance your budgeting will not only get you back on financial track but begin the process of wealth creation that we all deserve The cost of not following your money, and knowing how your money flows in and out of your possession is dear, and a very common mistake. But, what are the principles of successful budgeting.

The first principle of personal finance budgeting that comes before any dreaded calculations or budget sheet assessment is to remove all the emotion from your finances. This is the hardest and most important of the personal finance budgeting secrets to be revealed. If you find yourself wracked with debt anxiety, overwhelmed by countless financial obligations, or just simply hate counting bills and income, you are not alone. Removing the emotion from your personal finance budgeting will be a work in progress, and you should always remain on guard for its returning. But it is an essential and important to take effort to remove any emotion from this process. You are simply counting numbers,, to paint a map of where you are now, and to measure progress towards your wealth destination. Personal financial budget is a key component of building wealth. It allows you to quickly and stress free, debt repayment, college, regularly, so you can enjoy an early retirement and residential investment can Are you adequately budget, you can easily come and how much you can afford to spend money to know exactly how to go about your life, if you can.

The next step to when personal finance budgeting will be to compile a list of both your assets and your liabilities. With this step in the budgeting process we are trying to evaluate your net worth. With this information you can now make wiser decisions and streamline your finances, all with the help of a little personal finance budgeting each month. You simply need to make a list of what you own, assign each item a number as to what it could be sold for, or its current worth, and subtract from this list what you owe. For example, if you own a boat that can be sold for $1500 and you still owe $750 you would be left with a value of $750 that could be considered a part of your net worth. By determining these numbers in personal finance budgeting we are able to a better idea in the broad sense of what you are worth financially. Boring personal finance budget can guess, most people do not like the numbers work, but it's really simple. I have a budget, sometimes every other week, maybe 10 minutes a week, I had the hard way.

Following the determination of your net worth, our next budgeting step is to determine what your dynamic finances are. This sounds more complicated than it is, I am only asking that you make a list of what your monthly income sources are and how much you bring in each month from these income streams. Your budget provides you with a clear understanding of where your money is and how it is flowing. We then need to compile a list of your monthly expenses, what they are and how much the subtract from your monthly income. Proper budgeting your personal finances means leaving no expense or item off the list, no matter how small, account for everything. This budgeting task reveals to us the speed that you are travelling with your finances, either to financial ruin or towards your wealth building destination.

Investment Ideas For Retired People Who Need Extra Cash

Credit for image

Regardless of what you did for a living during your working life and how much you managed to save, sometimes we find the money just won’t stretch far enough when we reach retirement, and this is where many unexpected problems can arise. You see; the basic state pension in most countries will only just about cover your food bills and living costs, which means you’re going to have to think about ways of earning more money if you want to raise your standard of living. That said; it’s not always easy for elderly people to achieve this, which is exactly the reason why I’ve taken some time out of my schedule to write this short article this afternoon.

Presuming you’ve still got lots of money saved up but you know it won’t last until your last days, deciding to look at the many investment opportunities available for people in your situation could be the best move you ever make. Most consider investments to be far too volatile to trust, but so long as you do some research and put in the ground work, they can actually provide an extra stable income without too much effort on your part. So, if this sounds interesting, read on, and I’ll try to explain how you can benefit. 

The Stock Market and Precious Metals

Gold prices around the world reached an all time high only a few months ago, and this means that millions of savvy people who saw the surge coming have managed to secure themselves some frankly astonishing profits. Likewise, people who manage to make similar predictions within stock market trading can do just as well, so this is something I think you should all try to understand. Alternatively, if you really can’t get your head around metals or stocks and shares, it might be wise to contact a reputable brokerage company to see how they can help. I’d personally check out the reviews on TheBrokerageReview website to get started. 

New Businesses In Your Local Area

If investing in the stock market sounds a little too complicated, then another good idea would be to look for new firms in your local area who need a helping hand. You see; many governments around the world are currently waiving business rates in an attempt to encourage innovation, and this means thousands of new companies are appearing on the market every month. All you need to do is find a local one with potential and offer to buy in as a silent partner. You won’t have to spend your days working, but you’ll be first to get paid when the profits start rolling in. 

Global Currencies

Admittedly, you’re going to need a good knowledge of currency fluctuations to make a success of this, but as all the information you need is available free online, those with the inclination should have no trouble making a profit. As you probably realise, exchange rates change constantly, which means anyone capable of buying large amounts of currency when rates are low stands to cash in when the rates increase and they resell. Simples!

Right, that’s enough about investments for today; I’m getting a bit of a headache, and the kids will be back from school anytime soon. Good luck with whatever you opt to do in the future

Six Tips on Investing your Money without Risking Losing it All

Investing in the stocks can be very rewarding, but it is also full of risks. You could easily make a huge profit or lose everything. There are a variety of different strategies you can employ when investing in the stock market. Some people like to take bigger risks with the possibility of larger gains. However, a lot of people just want to steadily grow their investment without the risk of losing it all. There are many strategies that a conservative investor can use to safely invest in the stock market without taking a lot of risk.

Know the Stock Market

The first thing you will need to do is learn about the stock market. There are many types of stocks including technology, businesses, large cap, and small cap. You should also know if the stock market is in a recession or a depression. A great way to learn more about the stock market is by taking a class or by reading the wall street journal or another investment journal. The more you know, the easier it will be to evaluate each stock and decide what the best decision will be on buying or selling.

Research the Stocks You Are Interested In

Read up on the stocks that you are looking to invest in. For example, if you are looking to invest in Apple stocks, find out how the company is doing. See if the stocks have increased or decreased recently and if the stocks prices are expected to rise or fall. You don't want to throw your money in blindly. It's best to get as much information about each stock you plan to invest in so that you can make the most educated decision.

Know Your Risk

You should determine how much risk you are willing to take in order to turn a profit. If you are not a big risk-taker, you will need to determine how to invest in stocks safely. Invest only a small portion of your cash in the stock market. You can lose your money, including any future interest as well as the principal. You can decrease your risk by consulting with a professional and gaining as much knowledge as you can about market trends and what is expected to happen with the stock market.

Diversification

An important step in reducing the amount of risk you take on is diversification. Invest in many types of stocks including the technology sector, electricity, or international stocks as well as mutual funds and bonds. You should have at least ten different stocks in your portfolio. Invest only a small amount of your total into each stock. That way, if one you choose flops, at least you only lost a small percentage of your total investment.

Create an Emergency Fund

Since investing money in the stock market can be very risky, you should save up a large amount of cash that will last you six months in case of an emergency. You will know that you will have enough money in case you lose your investments. Investing is for your savings and your extra cash. You don't want to put all your eggs in one basket, so make sure you have back up savings in the meantime.

Rebalance Your Portfolio

You should always keep an eye on your portfolio. Re-balance the amount that you have invested in each stock so that one stock does not contain a large portion of the money you have invested. Experts recommend re-balancing your portfolio every six or twelve months.

Creating a well-balanced portfolio will help reduce your risk when investing in the stock market. Taking these steps should guarantee that you will not lose a large portion of your money. If you ever decide that you are taking on too much risk, then reevaluate what you are willing to invest and make changes to your portfolio.

5 Mortgage Problems You Want To Avoid So You Don't Lose Money

They say we learn from our mistakes, so that means it's a good idea to make them in the first place. What they really mean is that it's good to make a spelling mistake so the teacher can correct you. They're not telling you to make a terrible mistake when you're half way through the biggest purchase of your life. You'll still learn from the mistake, but it could cripple you. Let's look at a few things you don't want to mess up when it comes to your mortgage.

Don't go crazy with credit

Before you apply for a mortgage you don't want to have too much credit in your name. That means any big purchases you're thinking of making should be put on hold until your future mortgage is wrapped up. Even if you have the best credit rating in the world it's going to scare companies away when you owe lots of money to different people. What would happen if your circumstances changed and your finances were hit? Everyone who has lent you money would have to compete with each other to get theirs back.

Don't hide from your lender

A lot of people hate hearing bad news so they don't open their mail when it comes in. If they can't afford to pay their mortgage it gets worse because they stop answering their phone. Lenders find it impossible to reach people, but I'm sure you realize this will never make the problem go away. It could actually make it worse since lenders have a few options at their disposal and they could maybe save your home, but unfortunately this is never going to happen when they can't even contact you.

Don't skip the inspection

It's easy to fall in love with a beautiful home as soon as you walk through the front door. Sometimes they just 'feel' right and you know you want to buy it. Unless you can see into the future you don't know what is going to go wrong. The only way you can find any unknown problems is by getting a home inspection and you need one carried out before your offer becomes official. Your perfect home might look beautiful to the naked eye, but you don't know what is going on behind the scenes.

Don't lie on your application

At the moment you might not have the greatest income in the world and you could even owe some money to credit card companies, but you still have to tell the truth when you're filling in your mortgage application. It's even harder when you know you're due a big pay rise within the next year because you'll have to settle for a much smaller loan at the present moment. If your lender finds out you've lied to them you could end up in a lot of trouble and it could also be a federal offense.

Don't pick the wrong mortgage

I know it's easy to change your mortgage these days and everyone swaps around like crazy, but don't pick the wrong mortgage in the first place and you'll save yourself so much hassle. You might still need to change it further down the line, but at least you'll save yourself a few years of wasted money. People only choose the wrong mortgage in the first place because they choose the wrong people to help them, but you can take care of that by making sure you speak to a skilled financial adviser.

You only get one shot

Once you mess up you'll lose money and there is no getting away from it. You can always take out another mortgage, but your money will never magically appear again. Take your time if you're buying a home for the very first time because you don't want to regret something even if it only affects you negatively for a few years.

Author Byline:
The author of this article, Ian Andrews, is a freelance blogger, currently writing for First World Mortgage, well-known mortgage lenders in Connecticut. Ian loves cooking and on weekends he provides lessons to the underprivileged youth.

Easy Tips For Simple Money Management

The process of managing money, including investments, budgeting, banking, and taxes. Also called investment management. So let's turn to the 21st century's primary source of information: Google. And that's when it gets a bit hairy. This is how a prominent website defines 'money management': Money doesn't buy happiness. 

It's not more important than your family, your friends or your health. But let's not kid ourselves - financial security gives you the freedom to make the choices that are right for you, and freedom can be the key to happiness. We'd all like to improve our money management skills, and the first step toward getting better at something is understanding it. 

Money management is a broad topic with a lot of different facets, so it's not surprising that Google pulls up some confusing results. But definitions of money management that get bogged down in the details miss an important point: the secret to good money management is simple. Price action just need commitment and organisation. But it isn't anywhere near as scary as it can sound. 

Analaura & Wilson Luna are Authors, Licensed Financial Planners and Founders of Your Family Your Money - a financial literacy resource hub designed to help families with Money Management. By being conscious of what you do with your money, you can use the principles of money management to build wealth and take control of your future. And hey - Google isn't always scary. After all, if you ask it to, it will bring you here. 

You're probably not feeling very inspired right now. In fact, if you're like most people, reading that has probably got you thinking that 'money management' is something best left to the professionals - people who know something about money. But what you may not have realized is that, when it comes to your money, the person who knows the most about it is you. 

Let's be clear: money management is a big topic, and there are lots of books, articles and advice that will help you deal with the specific issues you'll face as you work toward financial freedom. If you find out what they are and learn how to use them to make money management a part of your daily routine, you'll be able to make the best use of your resources and create a lifestyle for yourself that's a lot less stressful, with a lot more options for Money Management. 

This terminology can be a bit intimidating but the thing to remember is that these are just names for the tools that will help you sort out how much money you have, where it's going and how you can generate more of it. You know how much money you make and how much you spend - after all, you're the one spending it! Whether you're investing in the stock market or buying a sandwich, you make money management decisions every day of your life, and if you don't like the results you're getting all you need to do is change your habits. 

Like any subject, financial advice comes with its own language, so you've probably heard words like 'budget' and 'statement of net worth'. So what exactly do you do? Well, as we said, money management is a big topic and the learning process is going to be a lot easier if you take it one bit at a time. You can browse our list of articles for specific topics and you can check out our online store for comprehensive guides on how to create strong financial foundations for your family.

How to be Ready for the Unexpected When it Comes to Saving Money?

When it comes to saving money, most of us have some sort of budget that we will use in order to guide our spending and help ensure we put away as much as we need on a regular basis to fund our future plans. Often these budgets will consist of complex and in-depth spread sheets with detailed break-downs of precisely what we're going to spend money on and exactly how much we're going to save over a set period of time.

The problem though is that budgets are consistent and inflexible and they don't tend to have much room for error. When unexpected expenses crop up then that you didn't anticipate – and they will – your saving can end up going on hold and you can end up running out of cash.

Sometimes it will be because the boiler broke, sometimes it will be because your energy bill is obscenely high for unknown reasons, sometimes it will be because you get invited on some amazing night out/trip abroad that you just can't say no to. Whatever the reason though, you will find that budgeting and saving rarely goes unhindered and that there's almost always something that will surprisingly cost you money.

If you have the right attitude however, these costs can be managed and dealt with. Read on and we'll take a look at some of the best ways you can prepare for those unexpected expenses.

Save When Times Are Good – Don't Rely on the Future

You know when you buy yourself an extravagant gift one month because your finances are going strong and because you promise yourself that you're going to pay it back later? Well unfortunately that just doesn't work. You promise yourself to save more money next month, but then something unexpected comes up and you end up losing more cash – thus the panic starts. You can justify things all you like, but ultimately buying on a whim will always be a mistake as far as your savings are concerned. Don't rely on having more money later – save now. 

Of course you should be able to treat yourself to things from time to time, but when you do this it should be as a reward for having already saved a certain amount. Set yourself targets and buy yourself rewards when you reach them – that's a much healthier and safer way to occasionally get what you want.

Expect the Worst

It goes hand in hand with the above point, but more generally you should just make sure that you plan for the unexpected. Not specifically, but overall – by putting aside a little extra in savings so that you can dip into those when you need to, by making conservative estimates of how much you can save. It's better to expect the worst and be pleasantly surprised with extra cash than it is to hope for the best then be shocked because you have much less.

Have Contingency Plans

But it's not enough to just acknowledge that you'll sometimes be spending extra money – you also need to plan for that eventuality and know what you're going to do about it. That means having a contingency plan for those emergencies – perhaps that involves dipping into a savings fund, maybe it means asking your parents for a loan, or maybe it means doing a little extra work on the side to get by. Whatever you do though, make sure that you don't end up getting desperate and taking out expensive pay day loans.

What's also useful is to take out insurance which can help to prevent some of those dire situations. Insurance won't protect you against every outcome, but it can help to prevent situations where you're working out for a new phone or paying for new furnishings in your home and lots of repair work.

Live Cheaply

Life will generally be easier financially if you find ways to live within your means. Don't spend as much as you can while still saving – rather find ways to make do with less and treat yourself occasionally when you can. By requiring less money day-to-day you'll be less caught out by those one off expenses and better able to save under any conditions.

Author Bio:

Miley Brooke, the author of this post, works for Donnelly's, providers of life insurance in Australia. She likes to write and is keen to learn new languages. You can connect to her team on Google+ and have a look at their profile on LinkedIn.

5 Ways to Reduce Living Expenses and Save Money

As adults brace for their fiftieth birthday and continue to grow older, they worry more about the unlikely possibility of comfortable retirement. Although the economy slowly grows and unemployment rates drop, many older adults find themselves forced or willing to work into their 60s and later in life.

They still have mortgages to pay, college tuition for their children, car payments, and other bills that reduce their savings accounts or retirement funds. Those individuals not able to consider or not wanting to retire must readjust their long term life plans.

That’s why now presents an ideal time to change your lifestyle, lead a healthier life, count your pennies, live within your means, and save. The cost of living will not cease to rise while annual salaries and benefits remain stagnant.

The only way for these older adults to brace for change, prepare for a possible delayed retirement, and to save is through changing the way they live in small, significant ways.

1. Conserve Home Utilities

Reduce the utility bills and save energy at home. Often, especially during the winter or summer months the heating and electric bills paralyze home owners, especially those still paying mortgages.

Take the tiny steps to decreasing that utility bill by shortening the length of showers, washing the dishes, the number of times you wash clothes per week. Turn off lights when possible. Unplug power adapters to computers, tablets, and cell phones that can consume costly electricity. During winter and summer, keep the thermostat at a reasonable temperature and do not change it often. Maintaining a consistent temp ensures less electricity, gas, or oil usage.

If possible, perhaps invest in an energy efficient dishwasher, washing machine, or other household appliances. More energy efficient homes and eco-friendly houses are popping up everywhere. Consider the investment of roof solar panels if you have the necessary funds or think the investment is worthwhile after a consultation.

If you’re not overly reliant on cable television and internet within the home, then eliminate that costly monthly bill. Most individuals have internet access via their smartphones when home. Save the long computer tasks for a couple hours at Starbucks, the local public library, after hours at work, or any places of business that provide complimentary Wi-Fi.

2. Rent to a Tenant

After the kids moved away from home and went off to college, it’s time to start considering renting their rooms. A tenant will help pay the utility bills and even their extra rent contributes to a mortgage. When maintaining a house, the living expenses can grow out of control quickly.

3. Downsize

As individuals grow older, maintaining a larger house proves more difficult. Older parents don’t have the time, money, or resources to maintain a large house that was once necessary for their families.

Fight the urge to keep every piece of furniture, old stationary bikes, and anything you might find useful one day and downsize your home. Those individuals in their 50s or older lived through countless shifting economies that leave them with a frugal mindset. Instead donate, sell, or trash the unnecessary items in your home. Rent or sell the house and move into a smaller condo or apartment.

4. Credit Card Benefit Programs

If you failed to do so already, apply for one or two credit cards that boast fantastic reward programs. There are countless credit cards offered through VISA, American Express, Discover, Capital One, and Chase that provide numerous cash back opportunities on daily purchases such as gas, food, eating out at restaurants, online shopping, and even going to the movie theatre. You can earn redeemable points on travel for cash or free flights.

5. Short Term Loans

When entering old age, it’s important to know your financing options, especially in the event of unemployment that creates financial emergencies. Absorbing unemployment in your 50s could very well be nightmarish initially. Don’t let that unfortunate experience side track you financially.

While searching for a new job or in between jobs, there are lending options available to help pay for living expenses such as groceries, gas, rent, or utility bills. Explore the options of personal loans through lending institutions such as the ones available at Instaloan.com or with friends, credit cards, payday loans, and short term bank loans. These borrowing options save money in late payment fees, late rent payment charges, and related expenses.

Image Source – colourbox.com

Savvy Tips For Pensioners Looking To Save Money This Winter

When we reach our twilight years we expect to be treated with respect and compassion, yet the British government is coming down on pensioners like a ton of bricks at the moment in the hope of finding a way to offer them less money without having to deal with a mass revolt. 

They’ve already raised the retirement age to 67 (rising even further to 68 in a couple of years) and now they’re talking about sliding it all the way up the scale to 70.

Pensioners Looking To Save Money

This is truly tragic, and so it should be unsurprising to see so many campaign groups protesting the changes in London of the last few months.

The worst thing about this increase in retirement age is that almost 50% of people who smoke die before they reach 70, meaning it’s basically condemned the vast majority of smokers to a life of labour without even the slightest chance of being able to see the end of their working days. 

Personally, I find these changes completely disgusting, which is why I’ve decided to write an article about some ace money saving tips guaranteed to help pensioners (and all old people) this winter. 

I might not be able to change the governments infectious decisions, but I’m confident I can treat the symptoms.

Opt For Free Eye Tests

Although a lot of pensioners and old people in the UK still choose to pay for their eye tests and prescriptions, there really is no need for this. 

• Click Here and learn "How to Save Money Each Month – 76 Easy Things You Can Do Right Now"

Sure, the NHS glasses probably look a little less appealing than the designer brands available, but as everyone over the age of 60 is legally entitled to free tests and prescriptions, I’d advise you to take full advantage. This could free up more cash to pay for your rising heating and fuel costs.

Always Use Vouchers

When you open up a newspaper and see coupons or even when you visit specialist website and find discount codes, it’s of paramount importance that you print them off / cut them out and use them. 

This is guaranteed to save you lots of money in the long run that perhaps could be better spent taking the grandchildren out for the day or something similar. I really can’t stress enough how significant savings can be when utilising this technique.

Ask For A Water Meter

Unlike their electricity counterparts, water meters often result in people having lower bills, especially if they tend to take showers rather than baths. 

Most elderly UK residents spend their days visiting friends or sitting the local cafe anyway, so the amount of water being used is usually minimal. You never know; this could free up more than a few hundred pounds this winter.

So guys, now you’ve had time to read through my suggestions I sincerely hope you’ll manage to save enough cash to keep yourselves comfortable as we move into the cold months. 

Just remember that your heating is the most important expense on which you should not try to cut back. We all hear too many horror stories at this time of year about people who couldn’t pay the bills on time, so make sure this doesn’t happen to you.

Have a lovely Christmas folks!

Save Yourself the Headache: Five Tips for Financial Security

Everyone dreams of the day when they can finally retire from work and have the freedom to travel, pursue hobbies, and spend time with loved ones. These dreams can become reality if you are willing to follow some simple steps to attain the goal of financial security.

1. Save When You are Young

The single most important thing a young person can do is start saving right away. It may be tough to have the discipline, but saving now guarantees that your investments have decades of compound interest to help them grow. For example, if you put away $5,000 at the age of 20, that money will grow to $160,000 over 45 years at a steady eight percent interest rate. But put away the same amount of money at 39, and your money only grows to $40,000. That is the magic of compound interest.

2. Don't Get Divorced

Splitting a household of assets diminishes wealth like few other major events. Granted, there are times when staying married is unthinkable, but faced with the prospect of spending tens of thousands of dollars in attorney fees, dividing the family's assets, paying child support, and possibly dipping into retirement funds, couples therapy can be a much wiser investment for your financial future. This may not be a very popular point but nontheless you can save money by actually staying togther.

3. Refinance to a Shorter Term Mortgage

A traditional 30 year mortgage costs a homeowner, on average, hundreds of thousands of dollars in interest. Refinancing to a 10 or 15 year mortgage through a reputable company like Legacy Lending Group saves you money in two ways: The interest rate is lower, and principal payments on the loan are larger. This combination of factors allows you build equity faster, helping you to achieve financial security.

4. Make a Budget

It is hard to deny the real cost of your daily muffin and espresso if the figures are entered in a spreadsheet. If you chart every single expense for one month, you will have a much better idea of how to trim back your expenses. It is extremely surprising to me how many people don't do this because the money that you save, in turn, can be invested in an IRA or used to pay down your home mortgage faster.

5. Avoid Spending Habits

At an average of six dollars a pack, cigarettes are an expensive habit, hampering an individual's ability to save while they are young. For an older person, the loss of income due to smoking-related health problems and the higher cost of health care itself pose even more serious challenges to financial security. Other expensive habits include drinking alcohol or even frequent trips to the gas station for their daily coffee. Simply put, you can't afford not to quit these habits.

Attaining financial security is a goal within everyone's reach. You just have to plan carefully and make judicious short-term sacrifices to achieve those long-term rewards.

5 Secrets to Getting Your Business Loan Approved

English: (Photo credit: Wikipedia)

Applying for and obtaining a business loan can feel like an overbearing process. Every year, thousands of people apply for loans for their business, be it a new business or a credited one, and do not get approved. Here are some facts and tips to make sure you can secure the funds you need.

1. Be able to articulate the future

Borrowers need to have an updated business plan. Show the lenders how the business is expected to grow in every aspect. Have a detailed report of how you believe you will profit from the loan. More and more lenders and starting to dig deeper into the plans of businesses. You should talk about all aspects of your business from employees, to management, to cash flow. Lenders will feel much more confident in loaning their money if they feel good about your plans and know exactly what the money is going towards.

2. Know Your Business History

When it comes to getting a business loan, your past history definitely becomes a major supporting factor in the decision of whether you are acceptable for a business loan. Lenders will review past business earnings as well as business history to help decide if your request warrants an approval. New businesses can still get a loan without any history by having a well-organized and situated business plan.

3. Be smart in other financial aspects of your life

When applying for a business loan, lenders will examine all aspects of your financial life including your personal credit. Personal credit can play a huge role in deciding if you are granted approval for your loan request. To the lenders, how you manage your personal expenses are most likely how you are going to handle your business expenses.

4. Present yourself well

Bankers do not want to give their money out to people they do not believe can pay it back. First impression makes a huge difference when meeting with a loan advisory board. You should come into the meeting with a detailed business plan extremely confident, without appearing needy or helpless. Dress professional, be clean-shaven, shake hands, look the lenders in the eye and be stern. If you present yourself well and provide a great business plan, it gives the lenders confidence in you, they will feel better about lending their money to you.

5. Build a board of advisers

Building a board of advisers will put you over the top in your loan seeking process. If possible, put together your team of accountants, management, legal experts, marketing advisors etc. Some small businesses simply cannot compile advisers, however. Contracting your business with an agency, such as the CPA who understands the world of business and can work on tax returns, looks just as good in the eyes of the lenders. This compiled with the rest of the steps stated above will show lenders how organized and thought out your business plan is. The more detailed your overall plans are, the better bankers will feel about lending you money.

By following these 5 simple tips, you’ll give yourself the best chance of getting the business loan you need.

Author Bio: – Jason Bengert is a professional blogger and works at Park Place Equity. He is a fun loving person and his areas of interest are finance and technology. You can connect with him at Google+.