advice

5 Ways to Save More Money this Year

Written by adminMay 25, 2018

The secret to saving money is knowing how to spend it wisely. If you want to have a few extra bucks saved in your account for rainy days, for that family vacation you deserve, or for anything else you might need, then you have to be practical about how you spend.

Here are 5 easy ways to save money throughout the year.

1) Pay your bills early and on time.

I get it. You hate to pay bills. It’s a part of being an adult we all loathe. But, if we want things, then we need to pay for them. If you want cable and high-speed internet, it’s going to cost you a good chunk of change. The phone bill for you and the family will require a blood sacrifice and your first born.

We’re not saying you should get rid of that stuff, but if you’re going to have it, then make sure the bill is paid on time every month. Most of these accounts require commitments and if you miss a payment, you’ll be racked with late charges, penalties, and your credit score can take a hit. The last thing you need to do is shell out even more money for services.

2) Have an emergency fund.

You might think this is a waste of time and money. A lot of people don’t bother to save, either because they don’t think they can afford it, or they don’t anticipate something happening. In realty, that’s not a smart choice to make. Things WILL go wrong at some point in your life.

A recent survey said that a majority of Americans don’t even have access to $400 if something were to happen. If you got into an accident tomorrow, and you couldn’t work for a while, how tough of a situation would you be? If you’re living paycheck-to-paycheck and have nothing saved in the bank, you’d really be hurting.

The best advice is to have about 6-9 months saved up in the bank, which is the average time it takes to find a new job or get back on your feet after an accident.

3) Learn how to say no to impulse desires.

One of the biggest financial blunders Americans make is taking on more debt when they can’t even afford the debt they have. They see something they want, really can’t afford it, but mindlessly swipe the credit card and magically believe it will take care of itself later.

Monthly payments will eventually catch up to you, you’ll get late, have fees and penalties added on, it will wreck your credit score, and before you know it, you’re drowning. It happens to millions of Americans every year.

As I stated in the previous point, things happen all the time. It’s better to not have that shiny new toy and put the money in the bank for a rainy day, then to barely eek out every month. Do yourself a favor and just say no.

4) Refinance your student loans and get help paying them off.

We’ve covered this topic a lot on this blog. Student loans are a burden on so many people. They are preventing former students from getting a house and even from being able to work their dream job…the whole reason why they went to college in the first place. A lot of states will revoke your license to work if you have unpaid student loans.

If this is you, there is help out there! Government programs, refinancing loans into one payment so you’re working with a smaller interest rate, and so much more is available to you. To learn more, feel free to give us a call!

5) Don’t borrow from your retirement.

One misstep plenty of people take is borrowing from their retirement whenever they need a few bucks, but that approach is like robbing your future self of the retirement you deserve. Not only is it a risky move, you can be charged extra for pulling money out early. The big question remains: what will you do in retirement if you can’t replenish the fund?

Getting involved in this vicious cycle of poor money habits won’t offer you an ounce of financial freedom. It might make you feel good for a few days being able to buy what you want, but after some time, that joy becomes stale as you (and millions of others) regret the decision. Be smart, learn to say no, and save as much as you can. You’ll be happier for it.

Written by adminMay 23, 2018

Saving

Right now, you might be thinking it’s a precarious time to buy a vehicle, but it’s time for an upgrade. What should you do?

With auto loan rates rising, it can scare a lot of people from shopping as they sit back and wait for things to settle a bit.

That doesn’t mean you still can’t get a great deal on a car or truck that both fits your needs and is at a price you can afford. To do that though, you should do your shopping in the used car lot.

“If you really had to have a certain make and model, look at a used car. It can help with affordability, and you get a lot of the same benefits,” says Joe Pendergast, VP of lending at Navy Federal Credit Union.

It’s all about supply and demand. Over the past few years, people choosing to lease vehicles has reached an all-time high. That means when the leases are up, there’s always a flood of ‘gently used’ cars that make their way to the dealership. That bodes well for anyone hoping to get a good deal.

Vehicle prices have already seen a drop. According to the U.S. Labor Department, the cost has already started to drop, falling nearly 2% in April. Analysts expect that number will only go down as we enter the summer months.

Of course, most people want something brand new, as it offers the best of everything, from top-notch warranties to the latest technology to hit the market. Used vehicles aren’t that far off from buying brand new, but at a steep discount.

Most used vehicles are only a few years older, low mileage, and with the same great technology you’ll find in a new model. In short: you’re pretty much buying the same vehicle at a huge discount.

Trucks and SUVs often top the list as the most popular vehicles in the country to buy right now. Experts don’t believe that higher gas prices this summer will dent SUV sales too much. Navy Federal Credit Union says that the F-150 is the most popular vehicle their members get.

These types of vehicles are often higher in price, making it not uncommon to see buyers taking out 6-year loans. It’s always suggested that buyers stay on top of what they can afford and know their credit score before investing.

“Whether you’re buying new or used, don’t take the first deal you see. Be able to know that you can afford your car payment, as well as gas and maintenance,” said Pendergrast.

Written by adminMay 23, 2018

Saving

Money can be a touchy subject with millennials. This is the generation that is getting hit the hardest with disabling student debt, low wages, and the recession, which hit right as they were graduating college.

It wasn’t an uncommon sight to see someone in the mid-20s and lower-30s, with a college degree, living at home with their parents. Those who are making it, are barely doing so. High rent prices and the cost of living constantly outpacing their ability to get raises has made life difficult for most of our younger generations.

When the website MarketWatch wrote a piece about how much money 35-year-olds should have saved up (about twice their salary to be safe), the fury was intense. There were many responses of varying degrees, from righteous indignation to jokes to cut the tension.

The message was clear. Millennials SHOULD be saving their money, but they simply can’t afford to. We recently wrote an article talking about how Americans still can’t afford their basic needs. This is a growing problem as debt keeps piling on and wages remain stagnant. Many families still have to make tough decisions and what they can afford and what has to wait.

If you can barely afford to feed yourself, you’re not going to have enough to save, especially if you’re paying insane interest rates on loans just to keep your head above water.

The sad reality is, we can’t talk about retirement enough. This is a subject no one should pass up just because it’s a difficult conversation. No matter what we’re dealing with right now, we need to keep it a part of our thinking and budget planning. In fact, it should be a priority.

There’s no one-size-fits all approach to saving for retirement. What you’re going to need and when you’re going to need it will vary per person, but if you haven’t even begun to address the issue in your 30s, you’re in danger to fall well short by retirement age.

Social Security is dwindling and no one knows how much longer it will last. Many experts aren’t even sure what the future of the program will look in the next 30 years. It’s not a program today’s millennials can take for granted or expect to still exist. They will have no choice but to invest their own dollars into their retirement plan.

That starts now.

There are two things people can do to ensure they’re in a good spot.

The first is to save as much as you can. Ideally, you should be putting away 15% of your monthly salary. If that’s impossible, trying to cut back as much as you can. Even 5% saved is better than nothing. As the economy improves and your situation is better under control, you can up the amount you save.

The second way to better prepare yourself for retirement is to take care of your debt. Don’t keep adding more to it just because you want that shiny new car. If you know things are tough and you can barely afford to save, paying a large debt that’s mostly interest isn’t a good idea.

As of this writing, the government has put in place several programs designed to help people pay back their student loans. Most people who qualify for these programs can have what they owe significantly reduced, as well as the time it takes to pay back these loans.

The sooner you pay down your loans, the more money you’re able to save. Nothing is more important than your future and the future of your family. Paying off debts and having extra money to put away is only the first step into gaining financial freedom.

Written by adminFebruary 12, 2018

Uncategorized

Saving money is hard. It’s a reality most Americans have to contend with. In a perfect world, we’d all love to have a nice nest egg in case we need it. The problem is, the cost of living is way too high! It’s so high, that more than half of us don’t even have $1,000 in savings.

When asked, 36% of Americans claim their biggest regret in 2017 was not saving money, and they blame the high cost of living as the number one reason why. 20% blame their low salary as the reason why they don’t save. 15% don’t even budget, essentially throwing their financials together with duct tape and sawdust.

Everything Changes Except Salaries

The biggest culprit behind people not being able to save is how much things change from year to year. With every turn of the calendar year, it would seem as if prices continue to rise. The cost of rent goes up. The cost of food goes up. Gas prices fluctuate, but most often, go up. Insurance rates go up. Interest rates go up. Taxes go up.

While all these aspects of everyday living continue to grow more expensive, our salaries stay the same. If you’re lucky, you might get a $.50 raise, but that doesn’t go far compared to the other bills that keep stacking on top of each other. It’s no wonder more Americans are finding themselves struggling with debt.

Despite the Struggle, Saving is Key

No matter what our circumstances might be, we cannot afford NOT to save money. It’s crucial, essential, and may even be lifesaving! How would you be able to afford a major crisis happening? Most of us go through life as if nothing bad can touch us, so we don’t even worry about it.

Maybe we can get through until our golden years relatively untouched, but what happens then? We lived at or above our means for so long, did you have time to plan and save for retirement? This is one part of life that just has a way of creeping up on us. Americans are now working longer than they ever used to before due to the lack of financial planning.

You Must Become Debt Free

As difficult as it might sound, the only salvation for rising costs is to get out of debt, especially if you don’t anticipate your salary rising. Americans get caught in the trap of turning to credit cards and getting loans when they want something they can’t afford. But that’s the thing! They try to pay for things they can’t afford and it costs them in the long run.

Just assuming you’ll get things on track before retirement isn’t going to cut it. You need real change and to get ahead of the snowball running downhill. It will only grow larger and larger until you can no longer manage it. Having an emergency nest egg, saving for retirement, and ensuring you can live comfortably below your means is MUCH more important than buying that brand-new car or doing anything that incurs new debt.

If you’re burdened with lots of debt, the best course of action might be to consider debt consolidation. That will allow you to put all your loans and debts into one neat package to make the repayment process simpler, saving you money verses not getting a consolidation.

You can also try to do a debt settlement, which may even lower the amount you owe and can save you thousands of dollars. Whichever you choose, getting out of debt (and not adding on more) is the best way to improve your financial situation.

The best rule of thumb is to not pay for anything you can’t afford. If you’re in a dead-end job and you don’t see your salary going up anytime soon, there’s no reason to make your circumstances more difficult than you need to.

Make new goals and be smart with your finances. Then, you can celebrate being one of the few Americans who are debt-free and without the worry of having nothing to fall back on in case the worst were to happen.

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