19 Ways To Win With Money

Here it is. My quick list of ways to win with money.

  1. Spend less than you make.
  2. Invest early.
  3. Live on a budget. For a great free budgeting program go to: EveryDollar.com  All you need for set up is an email and a password.
  4. Don’t compare your wealth to others. Make goals that match your values.
  5. Make a very high income.
  6. Write down your financial goals.
  7. Work hard.
  8. Be disciplined. See my previous post.
  9. Save 10% of your income for retirement.
  10. Be united with your spouse about money.
  11. Educate yourself about money.
  12. Be content.
  13. Know your values.
  14. Create passive income streams.
  15. Invest in Real Estate.
  16. Own a business.
  17. Give to causes important to you.
  18. Define your financial priorities.
  19. Treat debt like a dreaded disease. Use the snowball method to attack your debt.

PF Roundup #1

 

Planting Money Seeds shares  how to achieve your investment goals.

Over at Money Manifesto he shares that delayed gratification is the key financial success.

Blonde and Balanced shares how to avoid rookie investment mistakes

Wise Dollar share 4 simple ways to start investing.

Financially Blonde reveals the role of desire in reaching your financial goals.

Dough Roller shares how to invest your first $10,000.

Over at Paying Debt Down he shares top 10 tips for couples to plan their finances together.

12 Money Goals

Do you have a goal for your money? Where do you want it to go? What do you want it to do? Without a goal for your money you are unlikely to succeed. Goals give you direction. Goals give you motivation. To succeed with money you need to have financial goals. Have you ever written a financial goal? Are you guilty of the “get it and spend it” mentality? Below are some suggested money goals for you to establish in your financial life.

  1. I will save $1,000 in an emergency fund.
  2. I will live by a budget. For a free budgeting resource visit http://Www.everydollar.com
  3. Spend less than you earn.
  4. I will open a retirement account and invest $50 a month.
  5. I will talk regularly about the budget with my spouse.
  6. I will save up and pay cash for vacations.
  7. I will visit personal finance blogs to learn more about managing money.
  8. I will check books out of the library to learn more about managing money.
  9. I will schedule an appointment with a financial advisor to discuss my financial situation.
  10. I will purchase term life insurance to cover my family if the unexpected occurs. Great company with competitive rates: http://Www.zanderins.com
  11. I will talk to my spouse and make sure he/she has adequate term life insurance.
  12. I will begin talks with my children about making, spending, saving, and giving money.

Continue reading “12 Money Goals”

The Cost of Procrastination

They say the road to hell is paved with good intentions. You may be among those that says, “I’ll start investing for retirement next year.” Next years comes and you say it again. Next year comes and you say it again. Postponing investing for retirement can cost you LOTS of money when you get to your retirement years. What a sad consequence for someone to get to the end of their working life and be told you don’t have enough saved to retire. There are no doubt millions of elderly over 65 today working because they procrastinated year after year after year.

Example 1: A 25 year old begins investing $100 a month in a Roth IRA and leaves it alone for 40 years (age 65). 8% return on the investment.   Result: $335, 737.25                                                                                  Actual dollars invested: $48,000

Example 2: A 30 year old begins investing $100 a month in a Roth IRA and leaves it alone for 35 years (age 65). 8% return on the investment.     Result: $223,332.58                                                                                   Actual dollars invested: $41,000

The investor in Example 1 only contributed $7000 more dollars than investor in Example 2. However, his reward for investing 5 years earlier is $112,405.00!! Wow! When it comes to investing the early bird gets the worm financially!

Have you started investing for retirement yet? What is stopping you? I’m sure you can see from the above example that SOONER is much better than later. Don’t be hard on yourself if you’re a late starter. You can’t change the past, but you can learn from it. Below is a link for a Compound Interest Calculator. Go ahead and punch in some numbers to see what you can do with your money.

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

 

 

Know Your Retirement Options

It is imperative that folks know as much as possible about their retirement options. Not knowing your options can have negative consequences for your retirement income. Every day you fail to educate yourself and take action can cost you thousands upon thousands of dollars in retirement dollars. There is a lot to learn about investing for retirement. This post will give you specifics on many retirement options that are available.

Below are some retirement account options for Business, Government and Nonprofit:

1) 401K  Private company employees are eligible for this retirement option. Your maximum contribution for 2016 is $18,000. Employers often offer matches that range from 1%-6%. If you are 50 or older you can catch up by contributing an extra $$6000 a year. Your usual investment choice is mutual funds.

2) 403(b)  Employees at nonprofits and state and local governments are eligible for this type of investment. The maximum annual contribution is $18000 a year. Employer match is typically 3% to 5% of pay. If you are 50 or over you can contribute $6000 more each year. Invesment options for this investment type is mutual funds or annuities.

3) 457  Some government and nonprofit workers are eligible for this investment. Maximum annual contribution is $18000 a year. It is rare to get an employer match with this type of account. If you are 50 or over you can contribute $6000 more a year. You usually get a menu of mutual funds for this investment account.

4) Thrift Savings Plan – This is for federal government employees, including the military. Maximum annual contribution is $18,000. Employer match is 5% for those in the Federal Employees Retirement System. Annual catch-up if you are over 50 is $6000. Your investment choices are 10 funds, including 5 target-date funds.

Below are some retirement options for small business employers and employees:

1) SEP-IRA  Small business employers and employees are eligible for this option. You can contribute 25% of your salary, up to $53,000 (same for all personnel). All employer match contributions come from the employer. There is no annual catch-up but contributions are also permitted after age 70 1/2. All funds offered where account is held.

2) Simple IRA Maximum annual contribution is $12,500. The match is 3% (or 2% employer contribution to all employees). Annual catch-up starting at age 50 is $3000: contributions are also permitted after age 70 1/2. You have a menu of mutual funds to choose from.

3) Solo 401K  Sole proprietors and their spouses are eligible. Maximum annual contribution is 25% of profits plus $18,000, up to $53,000. No employer match. Starting at age 50 catch up contribution is $6000. All funds are offered where account is held.

Below are some funds for individual investors.

1) Roth IRA  All earners making less than income phaseouts are eligible. The Roth IRA income phase-outs for single tax filers is $$117,000-$132,000. The Roth IRA income phase-outs for married jointly filers is $184,000-$194,000. Maximum annual contribution is $5,500. Annual catch-up starting at age 50 is $1000. All funds offered where account is held.

2) Traditional IRA  All earners are eligible for this retirement account. Maximum annual contribution is $5,500. Annual catch-up starting at age 50 is $1000. Usual investment options are all funds offered where the account is held.

I hope that the above information gives you help in knowing what retirement account options are offered with your current employment situation. Remember: Nobody should care more about your money than you. Continually educate yourself about your financial opportunities.