Budgeting For The Future
by: Jennifer Clason
Have you sat down and really thought about your financial future? I know people are busy these days and you think "well I'm young now and I'll have time to do it later." You're dead wrong. You are NEVER too young to start saving for retirement!
They say if a 25 year old puts in $2.00 a day into a savings account ($60.00 a month), buy the time he reaches 65 he'll have a million dollars. However, what is a million dollars these days - really? It's practically chump change with rising housing and cost of living expenses.
So you have to make a budget to save for the future. Don't expect Social Security to kick in, they're having problems already - much less when you get to be that age!
Here are some strategies to help you save for the future and your retirement:
1. Make a list of your monthly income. Include everything from your wages to gambling winnings, child support receive, alimony, and any other income you get every month.
2. Then make a list of your expenses. List everything you spend from your utilities to your cell phone bill. Also your child's violin lessons, pet expenses - everything.
3. Subtract your expenses from your income. Hopefully you are coming out ahead! If not, then you need to make smart decisions on which expenses are a necessity or a luxury. Do you really need a cell phone, or is it just convenient? Discipline yourself now and you'll thank yourself later!
4. Do this for several months. And then at the end of each month, figure out where your money went that was unnecessary. Did you go out to eat more than once a week? Did you buy your lunch instead of making a sandwich from home?
5. Put 10% of your income into a savings plan. This is the "rule of thumb" amongst investors on just how much you should be saving a month. If you make $3000/mo. then you should be saving $300. Pay yourself first!
6. Consider other options besides savings. Perhaps invest in a 401k or an IRA savings plan. Check with your banker to see which one would suit your needs and financial situation the best.
Really that's all there is to it! Never take money out of your savings for frivilous purchases like a new pair of shoes or to go to a movie. That is for your future! However if your car needs a new transmission, this nest egg is there for you!
It just takes a lot of self-discipline and the desire to want to have financial independence. Just apply these easy techniques and you'll be on your way!
About The Author
Jennifer Clason is the site owner and operator of http://www.mommyjobs.com. She has been running a full-time home-based Internet business for 7+ years now and owns more than 10 different Internet Sales websites.
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Tax Magic: How To Turn Taxable Income Into Tax-Free Income
Tax Magic: How To Turn Taxable Income Into Tax-Free Income
by: Wayne M. Davies
Believe it or not, there are ways to convert taxable income
into non-taxable income, without any fear of an IRS audit.
Here's one of my favorites. It's been part of our
tax code for over 30 years, yet many still don't take
advantage of it.
What am I talking about?
The IRA -- Individual Retirement Account.
Now, before you say, "Oh, I know all about that one; what's
so great about an IRA?", give me 10 minutes to explain 3 new
benefits to the IRA rules that you may not realize.
BENEFIT #1: How To Avoid Tax Rather Than Postpone Tax
First, did you know that there are now 2 kinds of IRA's
available?
The so-called Traditional IRA is the one that first came
out way back in the 1970's.
But there's a newer version of the IRA that's only a few
years old -- it's called...
Tax Magic: How To Turn Taxable Income Into Tax-Free Income
Ira > Tax Magic: How To Turn Taxable Income Into Tax-Free Income
Changing Jobs? Don?t let your 401(k) slip away.
Changing Jobs?
Don?t let your 401(k) slip away.
by: Ken Morris
Changing Jobs?
Don?t let your 401(k) slip away.
Today?s job market is more transitory than ever. And, as more and more individuals switch jobs, they begin to wonder what they should do with the money they have accumulated in their employer-sponsored retirement plans such as their 401(k) plans. The good news for 401(k) plan participants is that your retirement plan assets are very portable so you may be able to keep your existing 401(k) plan assets in a tax-deferred environment.
The trick is to resist the urge to use the monies. After tucking money away in your 401(k) for quite some time, you may be tempted to use it to treat yourself to a new car or some other indulgence. Because it could literally take years to replace your existing 401(k) funds, you should think carefully before prematurely taking money from your retirement savings.
A hasty withdrawal...
Changing Jobs? Don?t let your 401(k) slip away.
Ira > Changing Jobs? Don?t let your 401(k) slip away.
Renting vs. Buying: 7 Financial Facts
Renting vs. Buying: 7 Financial Facts
by: J Wynia
Fact: You are going to pay for a place to live. Period.
There is no free lunch and paying for a roof over your head is going to be part of your budget for a very long time. Given your needs (either just you, a partner or a larger family), there is a certain amount of space you need. For a family of 4, that means 3 bedrooms for at least 18 years and likely closer to 30. You are either going to spend that paying to live in someone else's home or your own.
Fact: Rent and mortgages are closer in monthly payments than you think.
Average 3BR rents in my metro area (Minneapolis) are $900-1000/month with many closer to $1200. That's for a rented condominium, not a house. In my metro area, there are currently over 250 condos and townhomes (equals owning the same thing you rent) under $1000 a month in payments. There are another 853 single family homes (an upgrade from apartments) under that...
Renting vs. Buying: 7 Financial Facts
Ira > Renting vs. Buying: 7 Financial Facts
Benefiting Substantially From Your IRA Early
Benefiting Substantially From Your IRA Early
by: Ken Morris
If you own an Individual Retirement Account (IRA), the primary purpose is to accumulate assets to provide an income source during retirement.
In the accumulation phase, you may contribute to an IRA on a tax deductible basis (with some exceptions) with the earnings growing tax deferred.
Upon withdrawal, distributions will be included in income and taxed accordingly.
In addition, for those wishing to access their IRAs ?early,? distributions prior to age 59 ? will be subject to a 10% premature distribution penalty tax, unless an exception applies.
You may have thought that there is no way to withdraw funds from your IRA ?early?, before age 59 ?, and avoid the 10% penalty.
This is not true.
The IRS permits an individual, under the age to 59 ?, to make distributions from their IRA and avoid the 10% early withdrawal penalty if the distributions...
Ira > Benefiting Substantially From Your IRA Early