Finance and Retirement #3

A Dollar Saved is a Dollar Earned

Did you know that saving money is the exact same as making money? Lets say you purchase a car and the price is $10,000. If you are a good negotiator or shop around you could probably find the exact same car for $9000. You just saved or made yourself $1000. I like to use the words saved and made interchangeably when it comes to money, because saving money is the exact same thing as making money only you did not have to clock in to do it. A wise investor knows the value of waiting for a good deal to come around, wait until the item is on sale or even couponing. Never buy on the same day or be pushed into a deal, remember this is your hard earned money and only buy on your terms, when you are sure you have gotten the best deal possible. The more money we save, the more we can invest for our future.

Additional ways to help you save money

Never buy a new car, always buy a car 2 years old this keeps what your paying for the car close to the real value of the car. Eat out sparingly, we all love to go out to eat at our favorite restaurant but limit it as much as possible. Do your own lawn work and fix the things around the house that you are capable of fixing. With YouTube at our disposal their is no excuse not to know how to install a ceiling fan or replace a sink. Don’t pay for what is free, there are many trial offers out there today and one should take advantage of the services that you can get for free for a limited time, all you have to do is shop around. Remember  every dollar saved is a dollar made and it will all add up come time to retire.

 

The does and don’ts of Credit Cards

When it comes to credit cards there is many things to consider but here are a few tips. Never get a credit card that has an annual membership fee. Unless you have no choice and you are building your credit then after one year of solid payment history cancel it and apply for another one with no annual membership fee. The biggest rule to remember is your credit cards should just be used  for emergency’s only, that’s why its important to have adequate savings. Credit card companies love people who pay the minimum payment every month and stay with a continuous balance with them but strive to keep your balances to a minimum or even paid off completely. If you have your cards maxed out and no available credit on your credit cards it says something about your lack of financial responsibility and this will impact your credit rating negatively. The more responsible you appear to be able to handle your credit the better the credit card offers will be and come time to buy a house or car your interest rate will be lower as well. For more tips on credit cards visit this site.

 

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Finance and Retirement #2

Investments for beginners.

 

More good ideas on what to do what your money when you are ready to invest.

Annuities are a safe and solid investments for beginner investors. Annuities can have extra cost and expenses that can eat into you return so you must be careful when investing in these. There are also different types of annuities so you must do your homework to figure out which one is best suited for you. Annuities can be complex but just ease your way into them and do not be afraid to seek professional advice. In fact before any investment I suggest you sit down with an investment advisor and ask questions and seek advice. You can always go to your bank and ask for an appointment to speak with a financial planner and its free.

 

 

Advice about investing in the Stock Market.

A huge thing about the stock market is an investor must understand is that it fluctuates. A smart investor never rushes out and sells their stock when prices drop, in fact they should do the opposite and perhaps buy more of that stock. Let me explain, what goes down must come back up and it has been proven over time that this is particularly true when it comes to stocks. Since this holds true when the price of stock goes down why not purchase more and enjoy the profits when it eventually goes back up. Another huge thing an investor must understand when dealing in the stock market is that your in it for the long haul, another words do not micro manage your investments on a daily basis. Check out how your stocks are doing once a month because we are beginners and not day traders. For more on stocks visit this awesome site for great tips.

 

 

Real Estate by far the best way to build wealth and set yourself up for retirement.

Real Estate is the number one way to build wealth hands down and its been proven. Investing in real estate is more for a seasoned investor and you must know what you are doing or you could end up losing money. Here are some tips on a few different ways to purchase real estate. You can go to your local court house and purchase foreclosed homes, you do have to have the money at the time of the sale but I have mentioned this is for the seasoned investor with capitol. You can contact real estate agents and let them know that you are looking for fixer upper homes and at what price range. Another great way to get really good deals on real estate is to contact banks and let them know your interested in purchasing their bad paper loans, its another term for houses that have foreclosed and did not sell at the court house. Good luck and remember to take your time and ask questions or you might end up losing money and that would defeat the purpose.

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Finance and the good ideas on how to Invest for retirement.

Finance and Retirement.

Finance and saving for retirement will be a life long struggle for most, but it does not have to be. The biggest and best piece of advice is to start saving and investing at an early age. Another great idea is to commit a certain percentage of your income to savings or your retirement fund.By starting to save and invest at an early age you will have the benefit of compound interest working in your favor. Also if you begin at an early age you will be a seasoned investor when comes time to invest the majority of your wealth in your later years.

At what age and how much should I save.

It is never to early to start saving, but if you start at the age of 18 you will have developed an excellent habit of learning how to save. A rule of thumb is to save at least 20% of your net income. This is the income that you take home after taxes. A young adult typically does not have enough to invest until after college, however you want to try and get 6-9 months of your monthly income saved up just in case you come in to hard times. By doing this you will not have to borrow or use credit cards to pay your bills every month if you happen to lose your job.

What should I do with my money.

After you have 6-9 months of savings in the bank and all your basic necessities are met it is time to consider the best way to get a return on your money.  First are Bonds, and CD investments. They both offer a great deal of security with similar returns, and at the same time they are predictable. They are secured by the government so you will get your money back and the rate of return is stated at the time of purchase. Second is a long term saving deposit such as an IRA. You can put $5500 a year of your hard earned money into an IRA tax free. The only time you would have to pay taxes is if you make a withdraw before retirement. Remember diversification is the key in building a safe and healthy retirement fund. More to come on what to do with your money in my next blog but for now check out this site for more on what a beginner investor should do with their money.

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