Tuesday, November 30, 2010
We Still Need Saving?
3:51 PM | 
Posted by
RamaP |
Most people who succeed in achieving their quality of life (ie rich people) are people who used to be active and diligent in trying to build his business empire, examples such as Donald Trump, Rupert Murdoch, Bill Gates, Bob Sadino, Ciputra, and more . They are the ones who really understand the use of her potential, time, and opportunities. If we think, it is unlikely that wealth acquired by them is merely the result of savings, wealth gained an advantage derived from their businesses, from the money they were able to 'bring' and they 'hire' back to business business-they become even greater.
So what about the presence of banking?, Which always offers one of their products, namely savings. With the mindset of these developments would be quiet savings product demand, or a savings product is not released again by the banks? In fact quite the contrary, banks have more incentive to offer savings products, both with the lure of interest / services that arouse or with fantastic prizes, which of course with a splashy campaign and crazy. This situation shows if savings products still in demand by the public, why can? Because the banks have learned this, that menabunng or savings term is synonymous with the bank, these terms are popular terms that are an integral part of banking promotional media. Actual savings products has flourished and expanded in terms of function, the savings rather than as a means to save money, but he can be as a means of business transactions, with various convenience facilities are provided. Banks are willing to invest all-out cost is only for the savings product.
So back to the question "Should We Still Saving?", If the question was addressed to me, then I would answer, "Yes, I Really Need One to Save!", Why? because of savings products are very accommodating of my financial purposes, if I want to transfer the money then I would open a savings account first, if I want to make my ATM open a savings account first, if I want to borrow money in the bank then I will open a savings account first, if I want to travel so I do not want to bring a lot of cash, so I keep some in my savings, if my employees / employee most of my salary so I can set aside in savings, if it is to transact my business I need a savings account. So finally to conclude, current savings products have become part of our lives, with some facilities that it provides convenience.
Sunday, November 21, 2010
Why Should I Make a Budget?
You say you know where your money goes and you don’t need it all written down to keep up with it? I issue you this challenge. Keep track of every penny you spend for one month and I do mean every penny.
Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years.
That, my friend, is the very reason all of us need a budget.
If we can get control of the small expenses that really don’t matter to the overall scheme of our lives, we can enjoy financial success.
The little things really do count. Cutting what you spend on lunch from five dollars a day to three dollars a day on every work day in a five day work week saves $10 a week… $40 a month… $480 a year… $2400 in five years….plus interest.
See what I mean… it really IS the little things and you still eat lunch everyday AND that was only one place to save money in your daily living without doing without one thing you really need. There are a lot of places to cut expenses if you look for them.
Set some specific long term and short term goals. If you want to be able to make a down payment on a house, start a college fund for your kids, buy a sports car, take a vacation to Aruba… anything… then that is your goal and your reason to get a handle on your financial situation now.
Wednesday, November 10, 2010
Why You Should Invest
Investing has become increasingly important over the years, as the future of social security benefits becomes unknown.
Maybe you've inherited money or realized some other type of windfall, and you need a way to make money growing. Once again, investment is the answer. Of course, your financial goals will determine what type of investments you make.
If you're saving for something in the distant future retirement, like, you want to make safer investments that grow over a longer period of time. Overall investment objective is to create wealth and security, over a certain period.
Maybe you've inherited money or realized some other type of windfall, and you need a way to make money growing. Once again, investment is the answer. Of course, your financial goals will determine what type of investments you make.
If you're saving for something in the distant future retirement, like, you want to make safer investments that grow over a longer period of time. Overall investment objective is to create wealth and security, over a certain period.
Monday, November 1, 2010
Love Your Money. It Will Love You Back
We need to talk.
It's about your finances. How do you feel things are working out between you? Are your needs being met?
If you long for a more fulfilling relationship with your money, remember this simple truth: When your money doesn't feel appreciated, it won't appreciate for you in return.
You pin your hopes and dreams on your ability to pay for them. So it's certainly worth your while to evaluate your finances and commit to building a long-term alliance that's healthy, fulfilling and prosperous. In other words: Give your money a little R-E-S-P-E-C-T, and it'll reward you exponentially.
"You demonstrate respect and appreciation for money the same way you would anything else you value in your life," says Barbara Stanny, author of Secrets of Six-Figure Women. "If you want it to last, you've got to take care of it. Throw it around carelessly or ignore it completely, and guess what's going to happen?"
1. Don't squander its potential. Peter Pumpkin Eater kept his wife in a pumpkin shell. But your money deserves much better. This means putting your cash some place it can earn more money for you. Don't demean it by locking it up in a pitiful savings account. On average, traditional bank savings accounts pay 0.4% on deposits, according to Bankrate.com.
Instead, for your short-term savings, consider a high-yield online savings account or money-market mutual fund. Currently, you can find these paying in the 3% or 4% range.
CDs also make fine choices, but they require commitment. So-called certificates of deposit tie up your money for a fixed amount of time, from a few months to a few years. You pick your time frame and lock in a rate for the period. For example, on average, one-year CDs currently yield 3.66%, according to Bankrate.com.
No-interest checking is so old fashioned. Instead, give your money more opportunity to shine with an interest-bearing online checking account through such reputable companies as Everbank, Charles Schwab, E*Trade and ING Direct. They currently pay between 2.25% and 3.25%.
2. Show your sensitive side. Abusing your money, spending unwisely and being oblivious to your bad habits are surefire ways to doom your financial relationship.
But too often we're careless and insensitive in less obvious ways. Little things matter, and you want to do everything you can to make sure your money saves its love only for you -- and doesn't spread it around to others like Uncle Sam, your bank or credit-card company. Here are a few ways to make sure you keep more of your money:
When you're in your twenties and thirties, the place to show your money a good time is in the stock market. And the best way for beginners to jump in is through mutual funds that invest in several different stocks. On average, since 1926, stocks have returned 10% annually (7% after inflation), according to Ibbotson Associates. That's tough to beat elsewhere.
Sure, you'll have your ups and downs. But just as any relationship grows by small acts of love, so will your money grow. Contributing little amounts of money steadily over a long period of time can add up to big bucks. For example, if a 20-year-old saved just $100 a month in a fund earning 10% annually, he'd have nearly $1 million by the time he turned 65. And if he increased his contributions as his paychecks increased, his money could grow to $1.5 million or $2 million.
Now that's loving you back.
It's about your finances. How do you feel things are working out between you? Are your needs being met?
If you long for a more fulfilling relationship with your money, remember this simple truth: When your money doesn't feel appreciated, it won't appreciate for you in return.
You pin your hopes and dreams on your ability to pay for them. So it's certainly worth your while to evaluate your finances and commit to building a long-term alliance that's healthy, fulfilling and prosperous. In other words: Give your money a little R-E-S-P-E-C-T, and it'll reward you exponentially.
"You demonstrate respect and appreciation for money the same way you would anything else you value in your life," says Barbara Stanny, author of Secrets of Six-Figure Women. "If you want it to last, you've got to take care of it. Throw it around carelessly or ignore it completely, and guess what's going to happen?"
There when you need it
One of the top qualities people value in any relationship is loyalty. Treat your money well and it'll be around when you need it most. Here are three ways to love your money so it will love you back:1. Don't squander its potential. Peter Pumpkin Eater kept his wife in a pumpkin shell. But your money deserves much better. This means putting your cash some place it can earn more money for you. Don't demean it by locking it up in a pitiful savings account. On average, traditional bank savings accounts pay 0.4% on deposits, according to Bankrate.com.
Instead, for your short-term savings, consider a high-yield online savings account or money-market mutual fund. Currently, you can find these paying in the 3% or 4% range.
CDs also make fine choices, but they require commitment. So-called certificates of deposit tie up your money for a fixed amount of time, from a few months to a few years. You pick your time frame and lock in a rate for the period. For example, on average, one-year CDs currently yield 3.66%, according to Bankrate.com.
No-interest checking is so old fashioned. Instead, give your money more opportunity to shine with an interest-bearing online checking account through such reputable companies as Everbank, Charles Schwab, E*Trade and ING Direct. They currently pay between 2.25% and 3.25%.
2. Show your sensitive side. Abusing your money, spending unwisely and being oblivious to your bad habits are surefire ways to doom your financial relationship.
But too often we're careless and insensitive in less obvious ways. Little things matter, and you want to do everything you can to make sure your money saves its love only for you -- and doesn't spread it around to others like Uncle Sam, your bank or credit-card company. Here are a few ways to make sure you keep more of your money:
- Don't overpay Uncle Sam when it comes to taxes.
- Pay off your credit card balances in full each month so you don't waste big bucks on high interest charges.
- Re-shop your car insurance.
- Get a rewards credit card that gives you free cash, travel or merchandise.
- Take advantage of lender incentives to lower your student loan rates.
- Know how to use your credit wisely, to avoid sabotaging your credit score.
When you're in your twenties and thirties, the place to show your money a good time is in the stock market. And the best way for beginners to jump in is through mutual funds that invest in several different stocks. On average, since 1926, stocks have returned 10% annually (7% after inflation), according to Ibbotson Associates. That's tough to beat elsewhere.
Sure, you'll have your ups and downs. But just as any relationship grows by small acts of love, so will your money grow. Contributing little amounts of money steadily over a long period of time can add up to big bucks. For example, if a 20-year-old saved just $100 a month in a fund earning 10% annually, he'd have nearly $1 million by the time he turned 65. And if he increased his contributions as his paychecks increased, his money could grow to $1.5 million or $2 million.
Now that's loving you back.
Copyrighted, Kiplinger Washington Editors, Inc.
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