Monthly Archives: March 2016

Save Money The Easiest Way To Save Money

f16We are consumers. We simply need things such as gas for our cars, insurance, phones, groceries, furniture and many other things. All of these things require money! Unfortunately, our economy is not good. Luckily, it’s slowly getting better. But even when our economy gets better, wouldn’t it be nice to save money on all the things we need? Wouldn’t it be nice to have an a few extra thousand dollars in our pockets each year? Well, you certainly can! The best part about it is it’s incredibly easy to do!

No more searching online for hours trying to find the best price for your purchase! The way to save an extraordinary amount of money is via saving money memberships! More specifically, lifetime saving money memberships! I am going to go over the 3 things you need to look for before getting any type membership like this!

1. Duration – You can get one that only last for a few months or years but if you’re looking to save thousands of dollars each year then your best bet is to find a one that offers a lifetime holding. Especially if you enjoy the benefits, it would be ideal to continue to enjoy it for the rest of your life. There are plenty of lifetime holding ones out there, however, if you can’t find one you like that offers that then at least look for one that has a long duration. A 10 year or even a 15 year saving money membership will do some great things in terms of adding more money into your wallet.

2. Do The Math – You have to look at the price! If you are looking to get a lifetime one, you may have to pay a decent chunk of money. But it’s important to remember that it’s a one-time payment. You also have to make sure you’ll be able to save more than you originally spent or else it kind of defeats the purpose. Doesn’t it? If a saving money membership with a lifetime holding requires a one-time $5,000 payment but you are able to save $2,000 each year, do the math! That’s a great saving money membership! You will be able to save more money then you originally spent after 3 years! After the 3 years you will be smooth sailing! Be sure to do the math before you freak out about the price!

3. Look At The Benefits – If you want to maximize your savings you’re going to have to look at the benefits! Look for a saving money membership that has a ton of benefits! If you get one for gasoline, you need to make sure you purchase a ton of gasoline each year! There are several out there that allow you to use it on almost anything! There’s no need to limit your savings! As I mentioned before, it would be nice to save on a wide variety of things and you certainly can!

Which Deposit Accounts Are Right for You

f15When it comes to storing money, where it ends up can make a difference. Whether the goal is to let money rest in place and build interest from investments, or be readily available for spending and paying off bills, several accounts can meet these needs. It is common to have a number of options to accommodate various financial goals. Here are some of the more popular deposit accounts available.

Checking

When it comes to deposit accounts, checking is the most standard type available. This is basically a place to collect money that is intended to be spent. They are usually free if a certain balance is maintained, but they may charge a small fee. This resource will give owners the ability to transfer funds, spend, and write checks. A checking account is a smart choice to have for paying bills, day-to-day spending, and collecting paychecks, but do not expect much (if any) interest.

Savings

These are where money can be stored and saved for a rainy day or some other type of investment. Savings accounts are a reliable way to put money aside and let it build through interest. They offer no investment risk for the owner or the bank. Their investors use the stored money and in return reward the owner in the form of interest payments. Unfortunately, the 15% interest rates of the 1970s have been replaced with 2-5% interest rates. That being said, owners can remain at ease by putting their money here and watching it grow.

Money Market

A sort of hybrid between checking and savings, money markets maintain higher interest rates but are subject to greater withdrawal amounts (six instead of three). This higher interest rate is the result of pooling the money into a different fund that is used by investors to produce higher profits. Since this is a more aggressive form of investing, there is more risk associated with it. At no point in history have these deposit accounts ever actually lost money. With the risk being this low, the higher interest rates are widely accepted as a smart trade-off for the customer.

Certificate Deposits

Also referred to as time deposits, this lesser known variety is a great option for safe investing. These get their name from the fact that the owner agrees to let the money remain in place for a certain amount of time, allowing the interest rate to accrue exponentially as the time passes. Because the funds have restricted access, owners can expect a higher interest rate. The money is heavily taxed and penalized if the agreed upon time has not passed; therefore, these are not ideal for anyone who does not have savings and a reliable source of income to supplement their spending. Owners should talk to their bank about the maturity dates offered. Maturity dates are the amount of time that has to pass before money can be withdrawn. This will allow the owner to know how long they would need to leave their money in place before withdrawal.

Patience Is A Financial Virtue

f14Modern society is characterised by fast-paced technology which allows us to enjoy Google searches, Twitter updates and ready-to-eat meals. Today, it seems that patience has become passé; who wants to wait for anything in this age of instant gratification?

Patience, one of the seven heavenly virtues, is the ability to accept delays in the desired timing of an event, or the capacity to endure problems without anxiety. Patience really requires you to take a passive approach while you allow nature or destiny to take its course.

When it comes to money, it could be argued that patience indicates weakness, as we should be fiercely ambitious in going after our financial goals. However, patience is an important trait to have if you want to succeed with money; without it you may be actually be sabotaging your dreams.

Immediate not always ideal

Persuasive advertisers often encourage you to buy their products with a sense of urgency, as they insist that you can’t afford to miss out on the latest fashions or their amazing sales. When you’re spending your money, sometimes you may feel under pressure to act quickly to get the best deal.

Most times, applying a little patience when spending will not let you miss out on must-have items or a once-in-a-lifetime shopping event. In fact, taking your time and thinking twice before you hand over your money can help you to avoid making impulsive purchases that you may regret in the future.

Before you commit to any purchase, ask yourself if it is the best use for your hard-earned dollars. Are there more important purposes to which your funds could be allocated? If you postpone your purchase until the following day, you may actually be relieved that you didn’t give into the desire to spend.

Defer getting into debt

Lending companies also promote the idea that you don’t need to wait for what you want, as you can attain all the items on your financial wish-list if your credit rating permits you to borrow. The concept of saving to obtain the finer things of life is almost obsolete, as your dream is just one loan away.

Experience has taught me that consumer debt is easy to get into and extremely hard to come out of. If you used your credit card to buy the latest high-end smart phone and your bank account is empty, you should be questioning your priorities. Is it worth paying loan interest just to keep up with the Joneses?

Instead of borrowing to buy luxuries, save for them or try to increase your earnings to match your desired lifestyle. Once you have fallen into the debt trap, it will definitely require a lot of time and patience for you to extricate yourself and get back on the road to financial stability.

Slow but steady savings

Another area in which you have to exercise extreme patience is with your savings growth. With the low interest rates currently available on savings accounts, some people choose to forgo saving to spend, or look for more lucrative ways to turn over their money for profit.

Apart from the fact that saving teaches you about making sacrifices and builds discipline, the act of saving is essential to create a store of money for emergency purposes. You also need to save to amass lump sums that can be used for goals such as the down payment on a home.

To get the most from your savings, opt for term deposit accounts that may offer higher interest rates, and ensure that the interest you earn is added to your principal every month. With lots of time and a little patience, the magic of compound interest will allow your savings to grow exponentially.

Wait for wealth

As the saying goes, ‘poverty sucks.’ It can be hard to be patient when there’s never enough money to live in the way you truly desire. While you should aim to improve yourself financially, you must also be realistic about the time it takes for your wealth to grow.

One avenue in which many persons allow their impatience to get the better of them is with investing. People who respond to rumours about high-performing investments without doing the necessary checks to ensure that they are legitimate, often end up losing their funds.

To increase your wealth, you need to become knowledgeable about investing and business options which can help you to multiply your money. You also have to patient to wait for the opportune time to reap your rewards; remember you don’t plant an orchard today and start harvesting tomorrow.

Patience brings personal growth

Patience also refers to your ability to tolerate challenging times. If you are currently experiencing financial difficulties, take the time to understand why you are in this position, and learn what you need to do to overcome your issues. Patience will allow you to face your reality with an optimistic outlook.

If you think it’s taking too long for your money situation to improve, recognise that delay does not signify your eventual failure. You may just need this time to develop and mature into the person you need to be to take full advantage of the opportunities that are waiting for you.

Money Market Accounts: A Smarter Way to Save

f13When you think of saving, you probably think of a savings account. While this is a reliable option for a secure place to hold your money, it is not always the smartest. Gone are the days when they offered 10% interest rates. The current average return is 1.4% per year. What that means is you can expect a few dollars in the end, and that is assuming there is not an annual fee associated with it. If you want to put your money to work, then a money market account is the choice for you. With higher returns, they can present both risks and rewards.

Interest

Money market accounts are usually subject to higher interest rates. This means that you get more for doing essentially the same thing as keeping your money in a classic savings account. This is because money market accounts are pooled in a different fund used by investors to produce higher profits. This more aggressive form of investing can potentially open up to loss of funds, but this is highly unlikely and has never actually occurred. With the risk being this low, the higher interest rates are widely accepted as a smart trade off.

Access to Funds

Another benefit is that you have more access to the money you deposit into it. Unlike a savings account where you may withdraw a maximum of three times per month, you are allowed to withdraw or transfer out six timers per billing statement. Additionally, most banks will allow you the option to write checks directly from it. Even better, many banks will also allow you to pair a debit card with the account for easier withdrawals and spending. This allows for greater flexibility than a standard savings account.

Security

As mentioned above, these accounts have never lost any money. This makes them a safer place to leave your money while still receiving a decent return. With the volatile nature of the stock market, this is certainly a better guarantee to maintain and build your funds.

Drawbacks

While a money market account is more appealing than traditional savings in terms of returns, it certainly does not compare to the returns of a mutual fund or other stock options. If your primary interest is to generate greater income, then this safer option might not be for you. To put it into comparison, a stock can return on average 8-10% while these bring closer to 2-4%. At best, you are looking at making half of the amount.