New article posted at "Everything Finance"
Everything Finance
New article posted at "Everything Finance" |
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A Hybrid Approach to Finance As a New Parent Posted: 20 Feb 2014 10:28 PM PST
It’s not easy being a first time parent because you get so tempted to buy just about everything on the the planet for your kids. Even someone like myself who regularly blogs about frugality has a little trouble resisting every baby accessory out there. What I’ve ended up doing is a bit of a hybrid approach. Here’s an explanation: Purchase New Safety ItemsAlthough I love scouring Craigslist and eBay, I’ve chosen to buy all new safety items. This includes new cribs for my twins, new mattresses, new car seats, and new monitoring equipment. It’s just a personal preference (like every parenting decision). I don’t feel comfortable buying items like this second hand unless I intimately know the source and how long they’ve been in use. Come to think of it, gently used mattresses would have probably been okay, but there’s no way to guarantee that the previous parents used waterproof pads, etc. You get the drift… Purchase Used ClothingDespite not wanting to buy used safety items, I have purchased gently used clothes and cloth diapers like they’re going out of style. It’s become a sort of game to see how many clothes I can find on eBay for very low prices. So far, I’ve managed to purchase most of my children’s 0-3 month outfits for under $1 each. It’s perfect because it they soil them or get them dirty in any way, they are practically disposable. I’ve had to save money on this area because of how expensive the other items have been. I don’t mind putting my children in used clothing, so long as it appears new and is free from stains or odors. To me, there is no reason to spend a lot of money on tiny clothes, since they grow out of them so fast! Books Not ToysI haven’t bought the kids a lot of toys. After all, they aren’t even born yet! It’s my hope that both kids love to read as much as their parents and that they somehow see their mom and dad reading all the time and decide that it’s something cool to do. Obviously, kids enjoy having toys, but I’m really going to try to stay away from cell phones and iPads. I know, I know – I have no idea what it’s like to be a parent yet. Putting on a two hour movie has probably saved the sanity of many a parent. I’m not saying they’ll never play with electronics. After all, I want them to be tech savvy. I’m just saying that we hope it won’t be a dominant part of their upbringing. We’d rather invest our money into other things. Again, I know parenting is very personal. It seems like everyone has an opinion on it, despite the fact that all of us have different kids. Still, so far splurging a little and saving a little has been a good hybrid approach for us, and we hope that we continue to find balance along the journey as well.
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Are you making these money mistakes? Posted: 21 Feb 2014 06:10 PM PST
It’s easy to keep track of the numbers and see how much we progress—or delineate from our goals. But what about the money mistakes we make? Sometimes, it’s just about making progress but making sure that we’re not screwing up the financial choices we do make. Here are three money mistakes that could be derailing your money goals. Not Saving for Retirement I know if you’re in debt, you think that there is no possible way you could be saving for retirement, too. But I’m here to tell you: If your company offers a match, and you’re not taking it, you’re making THE biggest money mistake of all. Most companies these days offer at least a 3% match on a 401K-style retirement plan. Think of that match as a 3% raise. It’s a financial bonus that you’re not taking advantage of. You can surely let go of 3% of your annual salary and you most likely won’t even feel it in your paycheck. If you’re earning $1,000 a week, 3% comes out to $60 a paycheck before taxes. In addition, that’s $120 that will be put into your 401k– $3,000+ a year straight into your retirement coffers and it only cost you $1560, or about $1000 after taxes. That’s a heck of a bargain. If you’re not contributing the match, call your HR department and do it NOW. Being okay with a Car Loan Too often, we’re told that it’s okay to get a car loan and that it’s acceptable and the only way to be able to afford a new car. Truth is, you should start saving for your next car at least a year or two in advance. Last year, my husband and I finally paid off the $45,000 in debt we started off with when we got married almost four years ago. This year, we hope to save enough to pay for a new car in cash, or as close to paying in full as possible. We have vowed to not take on any more loans greater than $10k except for a mortgage. Most people know when they will need a new car, and we have been taught that all we need is a car loan. But what if you start saving for that new car before you actually get it? What a novel idea, and imagine all the money you’ll save on interest. Not Paying Yourself First A key financial mistake many people make is waiting until the end of the month to put money into their savings. Perhaps you think you’re living paycheck to paycheck but you can still afford take-out every Friday night. If you’re serious about your finances, you need to get serious about saving. If you wait til the end of the month, you’ll never have anything left over to put into savings. Figure out your take-home income, subtract your mandatory expenses, and whatever is left, save 10%. So if you bring home $1000, and your mandatory expenses are $500, you have $500 left over, and $50 is 10%. Put away those $50 no matter what. That’s how you build savings. Nobody ever built a savings account by waiting to see what was left over. |
Everything Finance
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Lower Cost Places to Take Your Family on Spring Break Posted: 23 Feb 2014 11:00 PM PST
But rather than heading to all the typical warm weather destinations with college students, consider a different locale and a flexible schedule if you want to save money. Washington, D.C.Surprisingly, one of the most frugal places to visit is Washington, D.C. The average temperature in Washington, D.C. in March is 56 degrees and in April it’s 67 degrees. Not exactly beach weather, I’ll grant you, but for those of us who’ve been surviving with below freezing temperatures, it sounds downright balmy. In D.C., your only major expenses are likely to be hotel accommodations, food, and transportation. Many of the tourists attractions, including museums, government sites, and monuments, are free. If you have a flexible schedule, you could go in early April during The Cherry Blossom Festival. According to The Travel Channel, “Free events during the 2-week-long festival in early April include cultural performances, fireworks, and a parade. There’s no charge for the main event–the stunning trees framing the Tidal Basin and around the Washington Monument.” Portland, ORPortland, Oregon boast exactly the same temperatures as Washington, D. C. in March and April, but the atmosphere is completely different. While you won’t find as many free sites to visit as you will in Washington, D.C., the city is eager to give you a discount. TravelPortland.com has the low down on the discounts you can get if you book and stay in Portland sometime between now and March 31, 2014. However, in general, The Portland Perks Hotel Package includes a discounted rate at a hotel, free overnight parking (a $25 a night value), complimentary continental breakfast for two, and over 40 Portland Perks coupons. The Portland Perks coupons are good for things like 25% off your total bill at specific restaurants and two for one meals. Stay Off the Beaten PathIf you have your heart set on a warm weather destination, you may save money by staying off the beaten path. For instance, if you want to vacation in Florida, why not stay in a small city outside the major city you’d like to visit? Yes, you may have to drive to the beach during the day, but you’ll save on hotel rates and parking. If you’re staying for a week or longer, these savings can be significant, especially if you forego a beach front hotel for a hotel 10 miles inland, away from the city. Many of us are longing for a getaway somewhere with warmer temperatures and no snow. If you’re flexible with your travel dates and your location, you can find a good deal on your vacation. Who says spring break has to be spent in Mexico or Florida? Getting out of town to a different destination can be just as fun. What is your favorite, lower cost vacation destination? |
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Superb examples to explain you the concept of structured settlements Posted: 21 Feb 2014 05:38 AM PST
The mention of structured settlement might not be an entirely new term for you, but you wouldn’t be the only one who doesn’t yet have a crystal clear idea about exactly what these settlements are. Structured settlements, annuities, plaintiff, and defendant – all these terms could sometimes flummox you. The best way to understand the concept of structured settlements is to do so through the understanding of examples that are closer to real life than the legal jargon with is generally used to explain the concept. In this article, we try to drive home the idea of structured settlements through some fictitious examples of events which you are more likely to easily understand and envisage. An elderly lady being badly injured in a road accident Take the case of an elderly lady, driving back from her daughter’s home in the evening. A reckless driver speeding an SUV from the wrong side rams his vehicle into the lady’s car. She ends up in severe pain, and a life threatening situation because of the injuries and blood loss. In the hospitals, the doctors declare that acute hip injuries would render the lady incapable of moving freely. The court awards her a structured settlement, under which she is entitled to get $3,800 per month, for a period of 15 years, beginning the next month. Also, the car insurance company is liable to pay her an amount of $500,000 in lump sum, when she turns 70. This is a good example to make one understand how structured settlements can provide for a victim’s care for a long period of time. Also, the regular repeat payment amounts tend to be large when the time of the settlement scheme is not too long. A 10 year old boy being badly injured in a dog attack Johny, a bright young boy, was strolling around the park when his neighbor’s burly dog went mad and attacked him. In the attack, Johny had his face severely scarred, and also suffered fractures resulting from a fall during the struggle with the dog. The court decided that the dog owner was, without a doubt, liable to provide settlement amount to Johny and his family. The dog owner then sought the services of a structured settlement company, which further bought a structured settlement from an insurance company providing annual payments of $25,000 for a period of 5 years, beginning when Johny would turn 18. Also, the dog owner had to give an amount of $100,000 in 4 bi-yearly payments over the subsequent two years. The above case shows how the structured settlement can commence from a later date in the case of the beneficiary being a minor. A factory worker losing his life because of an accident in the factory Mark, a 40 year old laborer, was working near the furnace when it suddenly started spitting flames. The fire extinguisher fastened to the adjoining wall was not working at all. An unfortunate Mark fell victim to the fiery flames. Thankfully, the fire was soon controlled without further damage. The court held the company in whose factory Mark was working responsible for the untimely death of the man, and awarded his wife a structured settlement under which the company was obliged to pay a sum of $40,000 per month for the subsequent 30 years. Also, his wife was given the flexibility to seek higher payments with 6 months prior notice to the settlement company, to provide for her medical care when she grew past 50. Now, after 15 years of the structured settlement period, the company issuing the payments goes bankrupt, and has to be liquidated. Mark’s wife is worried about whether she would continue to receive the settlement amounts. Thankfully, the state government ensures that the company pays all outstanding payments to the intended beneficiaries from the receipts of liquidation. This case exhibits how structured settlements can prove to be long term stability solutions for the families of victims of accidents. Also, these settlements are flexible enough to provide for contingencies. The above mentioned three cases exhibit a lot about the circumstances under which a court can grant structured settlements to individuals. In such situations, the court generally tends to choose settlement mechanisms that provide for long term care of the victim, or the dependants of the victim of an accident whose responsibility can be attributed to an individual or a company. Moreover, these cases also amply exhibit the kind of amounts, and the time periods involved in structured settlements. Also, the fact that even if a structured settlement company goes bankrupt and has to be liquidated, the obligations towards structured settlement beneficiaries have to met first, is explained succinctly. |
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Transfer Money Overseas The Smart Way Posted: 26 Feb 2014 05:39 AM PST
Whether you are new to transferring money overseas or you are seasoned expat transferring money between bank accounts, it pays to transfer the smart way. Just as you might find when using any financial service, there are some sure fire ways to get ripped off and some sure fire ways to maximize the value of your transfers. The first thing you need to know about money transfers is that there is no such thing as a free lunch. You will need to pay for your transfer in some way – after all, banks and money transfer companies need to turn a profit in order to keep their services going. It’s the way that these profits are made that counts and with a little inside knowledge you can be sure you are not handing over too much of your cash in charges. Don’t Be Fooled By 0% Offers Or Free Transfer Deals There are many money transfer companies offering 0% transfer deals and these are best avoided if you can help it. These companies will factor in a poor exchange rate and it could cost you dearly. Treat these signs as marketing gimmicks. It’s the classic bait and switch. Instead, shop around for a good non-bank money transfer specialist who can give you an exchange rate that is as close to the interbank rate as possible. This is the rate that fluctuates every day on the currency markets, and should be viewed as the ‘real’ rate of exchange. An FCA authorized money transfer specialist will give you the best rates, professional guidance and transparent charges. They will also be able to give you access to currency contracts such as forward contracts that save you even more money over time. Opt For A Forward Contract And Lock In Your Exchange Rate Did you know that you can lock in your exchange rate for a fixed period of up to 12 months in advance? This gives you total peace of mind that your regular payments and other money transfers will always stay in budget. That’s great if you are using a currency that fluctuates wildly each week. You can usually set your exchange rate for up to 12 months, requiring only a 10% deposit Save Money On Your Next Overseas Money Transfer Saving money is important when you make any financial transaction and sadly currency transfers are one of the hardest hit transactions when it comes to opaque charges. Foreign exchange is commonly known as one of the last areas of financial services where the customer doesn’t know what it’s costing their bottom line. Exchange rates are inherently designed to confuse. The good news is that trading with an FCA authorized money transfer specialist can help you to save hundreds and often thousands on your money transfer deal. In fact, you could save up to 5% on each transactions versus the high street bank. In real money terms, that’s savings of up to £5,000 if you were to transfer £100,000. Banks set their exchange rates only once or twice per day whereas currency brokers call into the live markets, accessing wholesale exchange rates. Aviva Tabachnik is a personal finance blogger and Partnerships Executive at OPP award winning comparison website, MyCurrencyTransfer.com |
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Five Ways to Increase Your Salary Posted: 26 Feb 2014 06:30 PM PST
At the time, I was starting to think I should have listened to everyone who asked “What will you ever do with an English major?” But less than five years after college graduation, I had more than doubled my salary—this is how I did it. Pay Your Dues All I had coming out of college was a part-time job offer with no health benefits making $11 an hour as a reporter’s assistant for a small metro newspaper. Having worked there as an intern the previous summer though, I knew that I loved the job and the people and I figured I would make it my mission to land a full-time job. For eight months, I smiled while I did grunt work for anyone that asked. And when the hiring freeze was finally lifted, I was one of the first to land a full-time job—with a pay increase and health benefits. I considered this first full-time job as the starting point in my career. Always Be on the Lookout for Opportunities I was thrilled when I finally landed my full-time newspaper reporter job. And for a while, I really thought I would stay there for a very long time. Oh, to be young and naïve. Within that year, the newspaper was pounded hard by the economy, lay-offs were occurring quarterly, and pay decreases were the norm. As much as I loved the job, I knew I had to get out. When a co-worker mentioned an entry-level position at a small public relations firm, I pounced on it. Two weeks later, I had the job and a $10,000 annual pay increase. Don’t Wait for Disaster to Strike An entry-level PR position at a small firm was a great place to gain experience and learn the ropes of a new industry. However, in 2009, the economy pretty much tanked and so did our firm. As soon as it got slow at work, I started looking for a new job. In fact, the week I found out I landed a new job at a national advertising agency, was the week my boss cut my working days from five to three. My new job came with a $12,000 pay increase. I was feeling pretty good about myself, but it was still mid-2009. And almost as soon as I started my new job, the talk of impending doom started around the water cooler. Network, Network, Network I didn’t like the uncertainty at my new job, and the rumors of a large scale lay-off were deafening. So I began my job hunt once again. I reached out to all my friends, all my former supervisors, and colleagues and asked them to please forward my information. One of my contacts sent me a tip on a Friday morning, and by Monday evening I had landed a new job with a pay increase to boot. I was laid off two weeks later (less than six months after I had started there), and started my new job the next day. Negotiate The new job had wanted to offer me less than I had been making and I flat out refused. I said, “This is my final offer, take it or leave it.” Luckily, they met my request because I really had no other options, but I refused to go backward and earn less, when I knew what my real worth was. A year and half later, after a change in management, I was on the job hunt again. This time, it took me six months to land a job. If you’re keeping track, that’s five jobs in five years, and I more than doubled my salary from my first full-time job as a newspaper reporter. To the recent college graduates: don’t get discouraged if you’re not making as much as your friends. Give yourself some time to catch up. Always pay your dues and be on the lookout for opportunities. And then opportunity presents itself, pounce on it! You too can more than double your income in less than five years out of college. |
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When Is It Okay To Buy Something Expensive? Posted: 27 Feb 2014 09:51 PM PST
None of them have been anything particularly exciting, like a new purse. All of these expensive purchases have been for my kids. Still, every time I make an pricy purchase, I have to go through this exhaustive list of questions in my mind: Do I really need this? Will this make my life easier? What is the cost-per-use? It’s gotten to the point where I really can’t buy a pack of gum without asking myself if it’s worth it. My mind jumps to my budget and how each purchase will impact it. I know what it’s like to not have enough money in the bank, and I never want to go back there again. So, I find myself being extra careful with my purchases, even though I know I’m in a much better financial position than I was back then. Over time, I’ve developed some rules for when it’s okay to purchase something expensive. Here are some examples: 1. Special OccasionsMy husband turned 30 this year, which is a big milestone. We haven’t gone out to properly celebrate it yet because he’s been studying for a big test, but when we do, I know we’ll spend a little bit more than usual on a nice meal out. We rarely go out to eat and have nice meals, but it will be a fun thing to do before our twins arrive in just a few weeks. 2. After I’ve SavedThere have been many times when I’ve saved up for a specific purchase over the course of several months. I’ve saved up for a new laptop, a nice anniversary vacation, and lots of other things. In fact, I saved $10,000 for expenses for my twins, and I’m glad I did since our medical bills have been substantially higher than we thought they would be. A few years ago, I wouldn’t have had that type of savings, but I’m so glad I do now. 3. For Daily UseIt might not be the most exciting or the most expensive purchase known to man, but over Christmas I bought myself a Keurig. Now, did I need a coffee pot that cost $85? No, I didn’t. But, I bought it as a gift to myself, and I have used it multiple times a day since then. I’d much rather have this electronic than a pair of $85 earrings that I might only wear once a week. Cost-per-use is an important factor for me with any purchase, so if I’m going to get enjoyment from it every single day, it’s much more worth it to me. Ultimately, every single person is going to have a different threshold of what they are comfortable spending. As long as you can afford it and the purchase doesn’t plunge you further into debt or cause your family strife then I think it’s okay to splurge every now and then. I even think it’s okay to splurge often on something that makes your life infinitely better, like a cleaning service, as long as you take away and sacrifice on other parts of your budget. Essentially, it’s all a give and take, but I’ve had luck by following the rules I’ve listed above. |
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How To Save When Saving Exhausts You Posted: 28 Feb 2014 04:19 PM PST
I might do a great job for a while and put hundreds of dollars away. Then, I’ll get an e-mail about a great sale at my favorite store or see my friend wearing a cute new pair of heels, and I get tired of saving. Sometimes, I don’t want to save at all. Yes, I said it. Sometimes, saving isn’t that much fun. Still, being a personal finance blogger, it’s my duty to stay the course. It’s my full time job to write about smart spending and saving, and although I’m sure my readers will understand if I mess up from time to time, I feel a responsibility to make good financial choices. I’m human, though, and saving does exhaust me from time to time. Here’s how I get out of a savings rut when I know I’m in one. I hope it helps you to stay out of a rut too: 1. Make Sure The Goals are Clear and DetailedSaving just to save isn’t very fun. There’s no point in just saving stacks and stacks of cash, especially if you have a stack of cash saved up already! As long as you are debt free and have a good retirement plan and an emergency fund, it really is okay to spend a little something from time to time. However, since most of us aren’t 100% financially independent, it helps to make sure sure your goals are clear. Saying “I want to save money” is great, but it’s not very detailed. Make sure you give yourself an extra boost of motivation by saying, “I want to save so I can go on a vacation to France without feeling guilty,” or “I want to save so I can afford to send my kids to a good school without them having to suffer from debt.” Big, general goals don’t produce results. Specific ones do. 2. Make Sure You Have Someone On Your SideIt’s even easier to get exhausted from you savings regimen if no one is there to support you. If your closest friends are having a bachelor party in Vegas or your mom wants you to accompany her on a beach trip, it makes saving even more boring and exhausting. Embarrassing as it may be, you have to let those close to you know your plans. Ask them to help you stay accountable. Your real, true friends will find fun things to do that aren’t costly. Those who don’t care about your well being will either stop inviting you or make it all much harder by constantly asking you to partake in expensive activities. Ultimately, we all know that we are supposed to save. However, it can get tiring after a while. So, remember to celebrate the small victories, choose your friends wisely, and keep your eyes on the (very detailed) prize. I’m currently saving for retirement and to boost my emergency fund. What are you currently saving for? |
