Savings Tips

Managing Your Savings So They Will Last

Everyone likes to think that the savings the put away will be enough to help them reach retirement someday. Most do what they can and hope for the best. People who are serious about their savings plans, however, go beyond a simple savings account. If you are serious about making your savings last you a lifetime, here are a few ways to go about it.

• CDs, IRAs, & Other Long Term Investments – These types of securities are sure fire ways to ensure your savings earns more money over time. These come with low risk and low rewards, so there is not room to break the bank, but there is no bottom to fall out on you either
• Short Term Investments – Some people choose to deposit their savings into investments accounts that have a little higher potential than a tradition savings plan. These types of investments may produce greater returns, but also run the risk of providing none, and even losing money along the way.
• Trusts & Annuities – The reason that most savings do not last a lifetime is because people withdraw them early. With a trust or an annuity you are restricted from extra withdrawals which can save you from dipping too much into the piggy bank until there is little pork left.

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Starting to Build a Savings Plan for the Future

People who are concerned with their future will usually construct a savings plan to back them up. The average person wouldn't know where to begin when it comes to this, so they never get around to it. Do not let this happen to you.

Secure your future by constructing a savings plan that will provide you with financial security. If you are unsure where to begin, consult with a professional who can help gear a savings plan towards your goals. Financial consultants are a great help in constructing a savings plan. With their experience, they know every option for any scenario, including yours. If you want to make sure you have the best plan that will bring you the greatest return, get this kind of help for your money management.

No matter how long you have let it fall by the wayside, wake up and take some action. Do what you need to in order to secure the financial future of yourself and the ones you love by constructing a long term savings plan that will make the most out of your hard earned dollars.

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3 Great Money Saving Ideas for You

Everyone wants to save more money, right? We want to help you make sure that you are saving as much as you can on everything from everyday purchases to large purchases like homes and cars. Here are a few wide-ranging money saving ideas that could benefit you.

• Negotiate – If you are buying a home or a car or any other purchase that will require financing, be sure that you use your best negotiation skills. The heart of this money saving idea is to get the best all around deal. Are you getting the lowest purchase price or interest rate possible? Make sure you are with tough negotiating.
• Feed an Army for a Private's Pay – If you have a family and find that the costs of food alone are enough to make you choke on your dinner, than a great money saving idea is to rethink your habits. How often do you eat out? The average family cannot afford to eat out more than they eat at home and if you are doing so, than that could be the root of your problem. Food is one of only a few necessities in life. Make the most of your food dollar.
• Generics Rule – Do you think your kids can tell the difference between Post Raisin Bran and Publix Raisin bran? Probably not. Generic versions of name brand products provide people with savings without sacrifice. From prescription drugs to pencils, you can save a bunch by purchasing generics instead of name brands.

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Comparing Savings Accounts from Different Banks

If you are starting to put something aside for that rainy day that may never come, you will want to choose savings account that provides shelter from that storm.

Choosing the right savings account for you is a matter of comparing different offers from different banks and figuring out what best suits your situation. When you are comparing savings accounts from different banks, be sure that you ask all the right questions. What are those questions, you ask? Here are a few.

• What Interest Rate can they Offer – Savings accounts earn money based on the interest rate that is associated with them. Usually, with credit cards and other encounters with interest rates, you are looking for the lowest rate. However, here you are the beneficiary of the interest so you will want the highest rate available.
• What Security Protections Do they Offer – Banks are simply the most secure place we have found to keep our money. That doesn't mean they are 100% safe. Be sure to ask about the security that they put into their client's money and how your will be protected.
• Is there a Minimum Balance – Many savings accounts require that you maintain a minimum balance in the account. In the event that you need to withdraw funds, you want to be sure you will not incur any fees. Ask your representative about minimums and fees associated with the account.

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Using a Compounding Savings Calculator

Figuring out how much an individual can save over several years can be difficult without the help of a compounding savings calculator. A savings calculator of this kind can help you take compounding funds and interest rates into account when trying to plan for future savings goals. To use a savings calculator, you will need some information at your disposal. Here are the basics you will need to know.

• Starting Investment – If you are starting your savings off with a lump investment, this is the figure you will want to input here.
• Years – If you want to use the savings calculator to give you long term answers, you will need to input the number of years at which you wish to see totals.
• Additional Contributions – If you plan on making regular contributions into your savings over time, you can estimate these here. These additional contributions will compound your savings greatly.
• Rate of Return – What percentage rate do you anticipate gaining from your savings investment? This is essential to the savings calculator doing its job to project your future savings for you.
• Compounded – Will your interest be compounded annually, quarterly, monthly, or daily? This is a question easily answered by your bank or savings account holder.

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Setting Short Term and Long Term Savings Goals

At the heart of any good savings plan is setting and meeting goals. If you are trying to build your savings as fast and securely as possible, you will want to set hard and fast goals for your savings.

• Short term goals are important so that you are always able to see your progress.
• Long term goals are important because they are what all of your work and short term goals will lead to.

Short term goals – If you are worried about having the necessary discipline to build your savings over time, short term goals are the way to eliminate those fears. Set short term goals of how much you will deposit from your pay, how much you will allocate to investment and how much to savings, and how much you want your money to build over months and individual years. These types of short term goals are easy to set, but if you do not meet them, than they were pointless. Be sure to stand by your rules and you will reach your short term goals.

Long term goals – When do you plan on retiring? If you are like most people, the answer is when you have enough money. Your long term savings goals should be geared around a goal of retirement at a specific ago.

By following your short term goals, you can calculate how long it will take to reach certain landmarks which make up your long term goals. Meeting your long term goals will wholly depend on meeting your short term goals, so again, stick to it. With a little planning, anyone can build savings at a realistic pace. The key is in planning accordingly and meeting your short and long term goals.

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Health Savings Accounts from the Federal Government

A health savings account is a tax-sheltered savings account similar to an IRA, but mandated to go towards medical expenses. Deposits into health savings accounts are 100% tax-deductible for almost everyone with an HSA and can be easily withdrawn by check or debit card to pay for regular medical bills.

When it comes to larger medical expenses, these are covered by a low-cost, high deductible health insurance policy. Whatever you do not use from the health savings account each year stays there and builds interest to help supplement retirement. The health savings account is required to be used in conjunction with a separate health insurance policy that carries a high deductible.

Unlike many HMO and other health insurance plans, a health savings account allows you to choose your own physicians without extensive restrictions. The best course of action is to calculate your typical health insurance costs. Now, take that same amount of money and divide it between a lower cost policy and a health savings account. By using the HSA, you will not only need to spend less for everyday medical expenses, but it is all tax free.

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Starting a College Savings Plan for Your Children

With the rising costs of education these days, who knows how much a college education will cost by the time your toddler is ready for a University. Too many college students are forced to take on loans that they will work to pay off for a good portion of their lives. This does not have to be the fate of your kids.

If you start a college savings plan today, you can build enough savings over time to fund as much education as they desire. There are many options for a college savings plan. Many states offer their own prepaid programs that can be used for colleges in the state. These plans are great because the funds accumulate without you hardly paying into them. At the same time, these state savings plans are usually fully tax deductible.

If you want to start a college savings plan but do not want to restrict where your child can attend school in the future, you can go with an independent savings plan. One of the largest college savings plan providers out there today is UPromise. UPromise offers their clients with the opportunity to save money by making traditional deposits, but also by making specific purchases from specific locations. Things such as shopping for food or clothing can actually earn money for your child's college education.

No matter which path you choose, don't let your child be forced into debt to fund their education. Start a college savings plan now and give them a big surprise on High School graduation day.

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Everyday Money Saving Ideas You May Have Missed

Some ideas can be right in front of your face and somehow you completely miss them. There are many money saving ideas that are nothing new and yet many people do not take advantage of them. Are you saving as much as you could be? If you are missing out on any of these money saving ideas, than the answer is probably ‘no'.

Coupons – How many coupons do you get in the mail? What percentages of those go directly into the trash? If you are like most, the answer is pretty darn close to 100%. That is a shame because there are probably money saving coupons on things that you were going to buy anyways. Next time, take a closer look at what you are discarding. Interest

Specials – Of the money saving ideas that most people miss is one that involves an interest rate special. Let's say you were planning on buying a refrigerator by the end of the year. When you go to look at what is out there, you see that there s a special right now that provides 0% interest for a certain amount of time. Most people will miss out on these opportunities because they are just ‘shopping' and not ‘buying' that day. But if you are going to buy the fridge anyways, you may as well do it without having to pay extra for finance charges. Don't pass these specials by.

Carpooling – Do you drive to work? If so, you are definitely feeling the pinch at the fuel pumps. Gas prices have made it difficult to justify owning a car. But we all need to get to work, right? If you want an obvious money saving idea when it comes to gas, the answer is to get a carpool together. Even if you have only a single co-worker to share the driving with, that will cut your gas costs in half! Imagine if you can get 3 or 4.

These are just some obvious money saving ideas that we should all take note of. For longer term money saving ideas such as savings plans and retirement planning, consult with a financial specialist who can build you a road to retirement with innovative money saving ideas.

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