Posts Tagged ‘Saving Money’
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.
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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Tags: emergency fund, Saving Money
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.
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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Tags: debt consolidation, paying off debt, Saving Money
Posted in Credit Card Management, Debt, Financial Goals, Saving Money | No Comments »
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.
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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Tags: save on water bills, Saving Money
Posted in Frugality, Saving Money | No Comments »
Rebuilding Your Savings
Posted May 31, 2009 by Bernz
If you’ve seen your savings dwindle to an all-time low over the past few years then you’re not alone. Many people have been affected by the current recession and find that they have less cash on hand savings than at any other time during their lives. Rather than simply lamenting this fact the key thing is to get proactive and began to get your money working for you once again.
When looking to rebuild your savings, the thing to do is to start small and start safe. Simply choose a small amount of money that you can afford to invest and put it away consistently into a savings account. While savings accounts don’t offer incredibly high rates of return, they are extremely safe and any amount of interest you earn will be more than you would if your money was stuck under your mattress or in a coffee can in your closet. Choosing to have a small amount of money deducted regularly from your paycheck and deposited into a savings account is a fantastic way to begin to rebuild your savings.
Another safe and secure investment is a CD, or certificate of deposit. The rates they offer are usually higher than those of savings accounts because they make you keep your money in them for specific periods of time. Once a CD is purchased, your money will stay in them and accumulate interest for the term of the particular CD and once the CD matures you will get your money back with the interest it earned. If you are tempted to take out your money before the end of the CD’s term you will face penalties which can negate the effect of these safe money making tools. (more…)
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Tags: certificate of deposit, Saving Money
Posted in Financial Education, Financial Goals, Investing Basics, Saving Money | 1 Comment »
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