Saving Money

Do Today’s Kids Know Enough About Money?

Posted June 10, 2010 by Bernz

It almost seems like a rite of passage – teenagers getting into college, finding more freedoms, and getting a credit card.  credit card companies have always been eager to supply college students with credit cards.  They often turn into customers for life.

While at first it seems like a great way to teach college students about credit, the new shiny credit cards don’t come with instructions or lessons.  For those kids who have never managed money in the past, it can be a nightmare – one that is hard to overcome as credit card bills keep pouring in.

The topic of handling money is not often taught in schools, leaving kids to get their information from friends, and what they think their parents are doing.  Parents themselves often don’t talk about money with their children.  Money is a taboo subject in many households; considered too crass of a topic to bring up.

But where does that leave our children?  Credit card debt among college students has doubled in the past 10 years and often students enter the working world with as much credit card debt as student loans. (more…)

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Emergency Fund: How Much Do You Really Need?

Posted June 23, 2009 by Bernz

Keeping an emergency fund available for unforeseen crises is a financial planning tip that is widely quoted. Any number of situations could come up where you may need to dip into this short term savings fund, such as loss of job (a more likely occurrence with the current economic situation), emergency medical expenses, or home repairs.

emergencyfund

But how big does this emergency fund really need to be? Some financial planners suggest three months salary is a good general rule. If you would ask Suze Orman, (yes I do watch her show especially the “Can You Afford It” segment) she will say 6-8 months or even one year if you can afford is more advantageous. However, the right answer for you will depend on your circumstances and the risks that you are trying to cover. Some of the risks that people put aside savings for can be covered less expensively with insurance.

Take home repair for example. If your air conditioner or furnace were to quit for good, the expense of buying a new one might damage your current cash flow. (more…)

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Posted in Financial Education, Financial Goals, Frugality, Investing in Real Estate, Retirement Planning, Saving Money, Wealth Building | 2 Comments »

Getting Out of Debt vs. Saving Money

Posted June 15, 2009 by Bernz

There are two conflicting tips that are offered by financial experts during these turbulent economic times. The first is to pay off your debts and to save money. For an individual who is already overextended, how would you know which one you should prioritize? Well, each situation is unique and it is difficult to generalize when it comes to situation of each person.

debtorsave

However, there are several questions you need to ask yourself before making the decision:

• How much do you have in your savings right now?
• How much money do you owe?
• How much interest are you paying for your debts?
• How much are you earning every month?
• How secure is your source of income?

Essentially, people who are not worried about losing their current source of income in the near future should focus on debt repayment. They should start paying off the debts with the highest interest such as credit cards before moving to secured debts. In addition, if the amount of debt you owe is easily payable within one or two months, don’t put it off because it is just a waste of interest money. The main point is, you should plan debt repayments thoroughly and carefully. (more…)

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Are You Wasting Money On Water?

Posted June 7, 2009 by Bernz

I just found out from my wife yesterday that our water bill was up by almost 20% from previous and started investigating for possible leaks and sure did find that one of my faucets outside the house (by the deck) was leaking. I readily replaced the shut off valve and then realized that this maybe a good topic to post here. Hope that you find these tips valuable.

leaky-faucet

The cost of water is not something that most people think about. The price of water has actually risen at double-digit levels compared to several decades ago. And with scarcity becoming a serious problem in different parts of the world, it is safe to assume that the price of this commodity will increase even more in the near future. The amount being forked over every month for this commodity is not something to be sniffed at. Significant savings can be realized by simply conserving water. (more…)

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