Emergency funds are considered to be a necessity as far as financial security is concerned, since it can provide one with financial resources that one can resort to and depend on when an emergency arises such that when one is sick and have the burden of paying huge medical bills, or unexpected home or major car repair.
When one has no emergency fund, one can be obliged to acquire debt on your credit card that might take several years to repay with interest that would later cost so much more.
However by putting an extra thirty to fifty dollars every month in an individual “emergency savings account” one can be secured with what emergency the future may bring. In doing this, it is recommended that one regards the emergency fund as an additional bill, to be punctually paid each month.
Yes, one can and should budget and allocate the extra money for emergency fund, as this is very significant when one refers to his “financial future”. Here, the goal is to create savings from budgeting your income; the emergency savings should ideally be equal to at least three months your living expenditures.
What's important is that you should steadily put a certain amount of money aside, and only use it for real emergencies.
Not like an investment, the success of one’s long-term savings funds does not really count on the amount of return or interests but on placing a fixed amount of money away constantly and steadily so to have immediate access to it at all times.
In spite of one’s financial status, the initial step in the process of constructing an emergency fund is by knowing where your money is presently being consumed or spent.
When one recognizes and determines where one’s earnings are spent, then it will be easy for one to choose and make a decision where to trim down expenses. In other words, budget.
Budgeting is putting or setting aside money for anticipated and unanticipated future use. It is here that one sets up a goal so as to save. So set an emergency fund as your goal.
Checking, savings, money market accounts and “certificates of deposits”, are great places to keep one’s cash that might be needed on quick notice.
The amount saved from budgeting can either go to your savings goal, emergency fund or both. One could utilize the money saved from budgeting financial expenses by saving half of it to your savings account and half of it for emergencies. This way, you achieve your goals in savings and at the same time put in funds for emergency use. It’s your choice.
Saturday, April 5, 2014
Friday, March 14, 2014
BUDGET LIKE MOM
Budgeting is truly the turf of most mothers. Aside from the traditional role imposed on mothers as the one who budgets the family finances, mothers have the instincts and foresights on what might happen in the future.
But how do moms really stretch the budget? She neither uses complicated formulas nor magic tricks but simple ingenuity and common sense. Peek in through moms' secrets in budgeting and learn. Role modeling is a good way to encourage attitude, especially towards money.
1. She clearly knows where all the money goes. Usually it goes to child care apart from the housing, health insurance, food and clothing. It is unlikely for her to cut cost on her children.
2. She studies all options given to her in terms of child care. Before she decides, she examines all aspects like safety, health and education.
3. To understand more, she talks to local child-care specialists and works out schedules with her employer for bonding time with kids.
4. For working moms, it is double the effort. They take care of the house and the children and at the same time work. She incorporates practical ways to accomplish both roles.
- Wearing professional clothes than trendy ones.
- Stays elegant but simple through a combination of basic colors.
- Dry cleaning costs a hefty amount, so, she dons on wash-and-wear clothes.
- Tone down on accessories.
- She engages in a lot of do-it-yourself habits like in cleaning spots and ironing wrinkles in her personal wardrobes.
5. Moms always shop with a list in her hand to keep track of her budget and expenses. She makes sure she does not exceed. Also, she has no time for checking out tempting stuff at the shopping mall.
But how do moms really stretch the budget? She neither uses complicated formulas nor magic tricks but simple ingenuity and common sense. Peek in through moms' secrets in budgeting and learn. Role modeling is a good way to encourage attitude, especially towards money.
1. She clearly knows where all the money goes. Usually it goes to child care apart from the housing, health insurance, food and clothing. It is unlikely for her to cut cost on her children.
2. She studies all options given to her in terms of child care. Before she decides, she examines all aspects like safety, health and education.
3. To understand more, she talks to local child-care specialists and works out schedules with her employer for bonding time with kids.
4. For working moms, it is double the effort. They take care of the house and the children and at the same time work. She incorporates practical ways to accomplish both roles.
- Wearing professional clothes than trendy ones.
- Stays elegant but simple through a combination of basic colors.
- Dry cleaning costs a hefty amount, so, she dons on wash-and-wear clothes.
- Tone down on accessories.
- She engages in a lot of do-it-yourself habits like in cleaning spots and ironing wrinkles in her personal wardrobes.
5. Moms always shop with a list in her hand to keep track of her budget and expenses. She makes sure she does not exceed. Also, she has no time for checking out tempting stuff at the shopping mall.
Saturday, March 1, 2014
MONEY SAVINGS ON FOOD
Thinking of cutting down your expenses on food? Then you should read the following tips. They will surely help you on reducing your food expenses. They are by no means comprehensive but they will be very useful.
For coffee drinkers
It is a good idea to re-use the grounded coffee once. Using coffee grounds two times or more will not greatly affect the taste of the coffee. It is highly encouraged to do this using a filter that is permanent and avoid the paper variety. Keep the grounds refrigerated until using it the following day.
For bread lovers
Grocery stores sell bread that was made the day before at a much lower price. There is nothing wrong with eating bread that was made the day before since it still is good to eat. If you have a lot of space in your refrigerator, store a lot for bigger savings. If you will eat the bread, you can defrost it using your microwave oven. Re-heat it every 30 seconds to prevent the edges of the bread from getting too hard.
When buying from the grocery
Before going to the grocery, you should have already made a list of all the things that you really need. Prioritize basic goods and avoid buying things that you do not really need. Observe the prices indicated on the displays. Remember, branded products cost considerably more than store brands. It is also a good idea to keep the receipt of your previous trip to the grocery and make it as a basis for your purchases on your next trip. To have higher savings, buy more of the product. You can always store it in your refrigerator or in the house to minimize your trips to the grocery store.
When eating outside
If you are going to eat in a pricey restaurant, the best time for you to go there would be during lunch. Food during lunch usually costs less and this will be to your advantage. When staying at the hotel on your trips, it is a good idea to check if they also include breakfast in your total room charge. You should also find out where the locals eat. Chances are, they will eat where the food is great and the price is even better. When going around, carry with you some snacks. A chocolate bar, chips, and cookies will go a long way while strolling around.
Eating cheaply does not necessarily mean eating bad food. Look around and you will be suprised at the options you can choose from. Take time and consider your choices so that you will not only eat a lot but save some money also.
For coffee drinkers
It is a good idea to re-use the grounded coffee once. Using coffee grounds two times or more will not greatly affect the taste of the coffee. It is highly encouraged to do this using a filter that is permanent and avoid the paper variety. Keep the grounds refrigerated until using it the following day.
For bread lovers
Grocery stores sell bread that was made the day before at a much lower price. There is nothing wrong with eating bread that was made the day before since it still is good to eat. If you have a lot of space in your refrigerator, store a lot for bigger savings. If you will eat the bread, you can defrost it using your microwave oven. Re-heat it every 30 seconds to prevent the edges of the bread from getting too hard.
When buying from the grocery
Before going to the grocery, you should have already made a list of all the things that you really need. Prioritize basic goods and avoid buying things that you do not really need. Observe the prices indicated on the displays. Remember, branded products cost considerably more than store brands. It is also a good idea to keep the receipt of your previous trip to the grocery and make it as a basis for your purchases on your next trip. To have higher savings, buy more of the product. You can always store it in your refrigerator or in the house to minimize your trips to the grocery store.
When eating outside
If you are going to eat in a pricey restaurant, the best time for you to go there would be during lunch. Food during lunch usually costs less and this will be to your advantage. When staying at the hotel on your trips, it is a good idea to check if they also include breakfast in your total room charge. You should also find out where the locals eat. Chances are, they will eat where the food is great and the price is even better. When going around, carry with you some snacks. A chocolate bar, chips, and cookies will go a long way while strolling around.
Eating cheaply does not necessarily mean eating bad food. Look around and you will be suprised at the options you can choose from. Take time and consider your choices so that you will not only eat a lot but save some money also.
Friday, February 28, 2014
HOW TO SAVE MONEY BY DEFINING LIST OF EXPENSES
With the institution of malls, affordability of technology, and rising cost of health care, loans, and rising inflation, it has become very difficult for one to spend less and save money for future use.
Current statistics show that banks are showing a considerable decline on each bank account holder’s savings and have shown an increased in the number of withdrawals per month leaving people little money to spend before the next salary strikes their account.
Along this fact shows a relative increase in the amount of spending made in private institutions marketing different products.
While these facts and a host of temptations are a commonplace scenario in the real world, there are many ways by which you can keep yourself from getting into the hype and aid you in creating and developing your personal and unique habit of saving a few dollars from your basic salary.
Ø Compulsive Buying – Given enough money, 7 out of 10 people lure into the idea of buying a personal item they like in a store at a first glance.
In a simulated sociological study, people who originally planned on window-shopping ended up buying personal stuff if they are taking their personal bankcards with them.
If you are doing window-shopping, limit your spending to a few bucks and try making your list the next time you plan on buying such items. Buy only the store items you need and abandon those that do not satisfy an immediate need.
Ø Budgeting – Along with your pursuit to saving money, it is also important to keep an organized and effective, yet reasonable budgeting technique. Budgeting eliminates buying temptations that would tend to build up during malling and help you save money along the process due to preformed lists of items you need to buy.
Ø Performing Price Comparison – The World Wide Web provides a great avenue on providing a checklist of prices on specific items that you plan on buying.
This is great for you if you are into bulk buying and plan on conducting your malling activity in one place. This will give you a good idea if the usual store from where you usually get all your everyday household needs provides you a reasonable price for specific products.
Ø Take All the Convenience At Home – Lunch, snacks, and major meals are something which you can prepare at home. If you are serious on saving money, you can prepare all this from home and get away with some amenities of the gut by replacing soda with water. This is not only beneficial to your pocket but does a great deal for your health as well.
Current statistics show that banks are showing a considerable decline on each bank account holder’s savings and have shown an increased in the number of withdrawals per month leaving people little money to spend before the next salary strikes their account.
Along this fact shows a relative increase in the amount of spending made in private institutions marketing different products.
While these facts and a host of temptations are a commonplace scenario in the real world, there are many ways by which you can keep yourself from getting into the hype and aid you in creating and developing your personal and unique habit of saving a few dollars from your basic salary.
Ø Compulsive Buying – Given enough money, 7 out of 10 people lure into the idea of buying a personal item they like in a store at a first glance.
In a simulated sociological study, people who originally planned on window-shopping ended up buying personal stuff if they are taking their personal bankcards with them.
If you are doing window-shopping, limit your spending to a few bucks and try making your list the next time you plan on buying such items. Buy only the store items you need and abandon those that do not satisfy an immediate need.
Ø Budgeting – Along with your pursuit to saving money, it is also important to keep an organized and effective, yet reasonable budgeting technique. Budgeting eliminates buying temptations that would tend to build up during malling and help you save money along the process due to preformed lists of items you need to buy.
Ø Performing Price Comparison – The World Wide Web provides a great avenue on providing a checklist of prices on specific items that you plan on buying.
This is great for you if you are into bulk buying and plan on conducting your malling activity in one place. This will give you a good idea if the usual store from where you usually get all your everyday household needs provides you a reasonable price for specific products.
Ø Take All the Convenience At Home – Lunch, snacks, and major meals are something which you can prepare at home. If you are serious on saving money, you can prepare all this from home and get away with some amenities of the gut by replacing soda with water. This is not only beneficial to your pocket but does a great deal for your health as well.
Tuesday, February 25, 2014
TIPS ON HOW TO SAVE MONEY
In this world today, prices seem to go higher every year. Saving money can sometimes be a hard job for many people. To help you save money, here are some pointers for you:
1. Determine the things that are important to you. Identify the items that you need and the items that you want to have. Always remember that you should only buy things that are important and needed in your lifestyle.
2. Make sure that you spend your money only on basic needs like food, transportation, shelter, and clothing. These basic needs are worth spending for because these are important for your health and security. They are the things that you cannot live without and should be allotted in your budget.
3. Make a list of the things that you want to buy and be sure that the items that you are buying are good enough to sustain your basic needs. You have to be satisfied with the things that you have now, as long as it is still useful and can accommodate your needs.
4. You may avoid unwanted purchases by trying the item first before buying it. This is to make sure that the item is worthy enough to acquire. There are instances that you tend to buy things without even knowing its effectiveness and quality. You have to keep in mind that you always need to spend your money wisely on items that have quality and are according to your budget.
5. You may try to budget your money in advance. You can make a plan first before spending your money. There are instances that you spend your money without even thinking that it is not the right time to have it. It also advisable to buy items at the end of the season, prices at this time of the year are low and cheap.
6. You may compare items on their prices. Do not limit your options to just one store only. You may find the best item that can be useful and affordable to you by window-shopping first rather than buying by impulse. Many stores out there carry the same items and can offer lower prices.
7. You can save more money in your household by conserving electricity. Be sure to turn off appliances that are not in use. You may compare your monthly electric bills regularly to check if you are maintaining your desired bill.
8. You can save on your transportation by traveling wisely. It is recommended that you make your itinerary to help you to not forget your destinations. Being organized will help you save money and time.
1. Determine the things that are important to you. Identify the items that you need and the items that you want to have. Always remember that you should only buy things that are important and needed in your lifestyle.
2. Make sure that you spend your money only on basic needs like food, transportation, shelter, and clothing. These basic needs are worth spending for because these are important for your health and security. They are the things that you cannot live without and should be allotted in your budget.
3. Make a list of the things that you want to buy and be sure that the items that you are buying are good enough to sustain your basic needs. You have to be satisfied with the things that you have now, as long as it is still useful and can accommodate your needs.
4. You may avoid unwanted purchases by trying the item first before buying it. This is to make sure that the item is worthy enough to acquire. There are instances that you tend to buy things without even knowing its effectiveness and quality. You have to keep in mind that you always need to spend your money wisely on items that have quality and are according to your budget.
5. You may try to budget your money in advance. You can make a plan first before spending your money. There are instances that you spend your money without even thinking that it is not the right time to have it. It also advisable to buy items at the end of the season, prices at this time of the year are low and cheap.
6. You may compare items on their prices. Do not limit your options to just one store only. You may find the best item that can be useful and affordable to you by window-shopping first rather than buying by impulse. Many stores out there carry the same items and can offer lower prices.
7. You can save more money in your household by conserving electricity. Be sure to turn off appliances that are not in use. You may compare your monthly electric bills regularly to check if you are maintaining your desired bill.
8. You can save on your transportation by traveling wisely. It is recommended that you make your itinerary to help you to not forget your destinations. Being organized will help you save money and time.
Saturday, February 22, 2014
SHOP AND SAVE
You have long known the credit card. It is said to be your ultimate gear when you go shopping. The plastic can even be a best friend to a happy shopper.
Considering the times nowadays, this plastic seems to be the least practical option out there. It is actually the most convenient tool used for consumption when you are out of cash. It lures you to spend.
Is there anyway for your credit card to be useful for your saving endeavors?
Yes, actually there are ways that the plastic can be helpful. You CAN actually save money with that credit card.
0% Balance Transfers
If your present credit card has high interests, you can transfer your balance to one with a low-interest or no-interest at all. It can offer you a 0% interest for a certain period and then a lower regular rate later on. A 19% interest rate can be transferred to one with 16.1%. The 2.9% difference means a lot, especially in the long run.
Lower Interest Rates
Look for one with the lowest rate among others to further maximize having a credit card. This definitely spells savings. If you do not have a balance yet, it is best to look for a card without annual fees.
Take extra precautions, too, in assuming that the lowest interest rate is the best for you. Factor in your buying habits. You may be attracted to the low rates, but the end result may not be desirable if combined with the annual fees and the like.
Rewards Program
Reward points system and cash back programs are offered now. This can save you money. Maintaining a low balance despite your frequent buys will give you at most 5% off on purchases.
There are even cash rebates up to 5% when you use the credit card at certain gas stations, convenience stores and groceries. This can be automatically applied to your bill, the more you can feel the savings you are making.
Maximizing the Experience
To reap the rewards, you must avoid the drawbacks. A prudent person will definitely look for the best deals and grab it right away but with some caution.
Thus it is necessary that you read the details. Check the fees that may be charged and the penalty rates in case you delay. This may be the downside of the deal offered to you. For example, be careful of cash advance features of credit cards. Some of them can be very expensive. They can come with numerous fees and higher rates.
Be wary! Spending cannot be avoided at times. Just don't forget your goal, getting a good deal to save.
Considering the times nowadays, this plastic seems to be the least practical option out there. It is actually the most convenient tool used for consumption when you are out of cash. It lures you to spend.
Is there anyway for your credit card to be useful for your saving endeavors?
Yes, actually there are ways that the plastic can be helpful. You CAN actually save money with that credit card.
0% Balance Transfers
If your present credit card has high interests, you can transfer your balance to one with a low-interest or no-interest at all. It can offer you a 0% interest for a certain period and then a lower regular rate later on. A 19% interest rate can be transferred to one with 16.1%. The 2.9% difference means a lot, especially in the long run.
Lower Interest Rates
Look for one with the lowest rate among others to further maximize having a credit card. This definitely spells savings. If you do not have a balance yet, it is best to look for a card without annual fees.
Take extra precautions, too, in assuming that the lowest interest rate is the best for you. Factor in your buying habits. You may be attracted to the low rates, but the end result may not be desirable if combined with the annual fees and the like.
Rewards Program
Reward points system and cash back programs are offered now. This can save you money. Maintaining a low balance despite your frequent buys will give you at most 5% off on purchases.
There are even cash rebates up to 5% when you use the credit card at certain gas stations, convenience stores and groceries. This can be automatically applied to your bill, the more you can feel the savings you are making.
Maximizing the Experience
To reap the rewards, you must avoid the drawbacks. A prudent person will definitely look for the best deals and grab it right away but with some caution.
Thus it is necessary that you read the details. Check the fees that may be charged and the penalty rates in case you delay. This may be the downside of the deal offered to you. For example, be careful of cash advance features of credit cards. Some of them can be very expensive. They can come with numerous fees and higher rates.
Be wary! Spending cannot be avoided at times. Just don't forget your goal, getting a good deal to save.
Friday, February 21, 2014
CUTTING YOUR KID'S SCHOOLING COSTS
Whenever the school season is just around the corner, there's only one thing that parents are thinking about - the impending costs. Education is a primary right and a pertinent need of every child but it can become very costly. Availing of scholarships and education grants for your children is the best way to get them through schooling. But of course, only a small percentage of children can be given these privileges.
There are simple and effective measures that parents can employ in cutting the costs of their children's schooling, especially during the back-to-school season. Most often, these measures are often taken for granted, but don't miss out!
Organize and Save
Keep an inventory of your children's school supplies and keep it organized. If you are not organized, you will be spending more money on replenishing your supplies. Small things like pencils and crayons may not cost too much, but if you replenish your supplies unnecessarily, you are losing valuable money.
You should also try involving the kids when making the inventory. This will give them a sense of ownership for their things and would know where to take and put their things.
Tax Holidays
Tax holidays are often offered by many states during the back-to-school season. Price ceilings will be put on different school gears. You might want to do a little research and ask about the schedule and the details of the tax holidays in your area.
Bulk Buying
It's a basic economic principle - "the more you buy, the more you save". Well, this is applicable if you are buying a specific item which you will really need in the near future. In buying pencils, for example, you might want to buy a box rather than buying one for each of your kids. Face it, you will be needing to replenish these after some time, so might as well avail of the lower price by buying in bulk.
Transportation
You might want to consider buying your child a bicycle for him to bring to school. This, of course, is not always feasible. Finding a cheap and safe way to bring your children to school daily is an important thing. Car pools and school transportation services are options that you can look at.
Snacks
Whenever you have the time and energy to prepare food for your children, do so. You will not only be saving on the pocket money that you will give to them but you are also secured that your children are eating healthy and safe meals.
Getting your children through school is a hard task and a costly one. Saving money through practical and simple means can assist you in this endeavor. The benefits will eventually add up to bring a brighter future to your children.
There are simple and effective measures that parents can employ in cutting the costs of their children's schooling, especially during the back-to-school season. Most often, these measures are often taken for granted, but don't miss out!
Organize and Save
Keep an inventory of your children's school supplies and keep it organized. If you are not organized, you will be spending more money on replenishing your supplies. Small things like pencils and crayons may not cost too much, but if you replenish your supplies unnecessarily, you are losing valuable money.
You should also try involving the kids when making the inventory. This will give them a sense of ownership for their things and would know where to take and put their things.
Tax Holidays
Tax holidays are often offered by many states during the back-to-school season. Price ceilings will be put on different school gears. You might want to do a little research and ask about the schedule and the details of the tax holidays in your area.
Bulk Buying
It's a basic economic principle - "the more you buy, the more you save". Well, this is applicable if you are buying a specific item which you will really need in the near future. In buying pencils, for example, you might want to buy a box rather than buying one for each of your kids. Face it, you will be needing to replenish these after some time, so might as well avail of the lower price by buying in bulk.
Transportation
You might want to consider buying your child a bicycle for him to bring to school. This, of course, is not always feasible. Finding a cheap and safe way to bring your children to school daily is an important thing. Car pools and school transportation services are options that you can look at.
Snacks
Whenever you have the time and energy to prepare food for your children, do so. You will not only be saving on the pocket money that you will give to them but you are also secured that your children are eating healthy and safe meals.
Getting your children through school is a hard task and a costly one. Saving money through practical and simple means can assist you in this endeavor. The benefits will eventually add up to bring a brighter future to your children.
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