Investing Your Money Wisely Before Retirement: 5 Things You Need to Know

Retirement might seem far away, but it is never too early to start saving to give yourself financial security when you leave the workforce. It pays to learn about investing before you blindly take a leap of faith that could crumble your financial stability. Take the following steps to ensure that you know where your money is going and how it will change over time. 

Understand the Investment Market

You aren’t going to have a good return on your investments if you don’t understand them. It is best to have a diversified portfolio, which in simple terms designates how much money you should be putting in stocks or bonds. This process involves looking at the returns and risk of investing in a specific plan. Keep in mind that your retirement portfolio extends over your life, and you will experience some years with better returns than others. 

Make Trade Offs

Making safe investments guarantees that you will get a return but at a lower rate than high-risk investments. A decent retirement portfolio consists of some safe investments, some that are riskier and make income and others that are designed for long-term gains 10 or 15 years down the road. 

Seek Expert Advice

A professional can help you decide where you should and shouldn’t invest your money. Professionals know how the investment market works and can tailor a portfolio that meets your needs without being too conservative or risky for your tastes. It also helps to read books, interview financial advisors or take a class on investing. 

Avoid Making Mistakes

Don’t get greedy or careless with your investments. An investment opportunity with above-average returns should set off red flags that something might not be right, since above-average returns are not possible for long, extended periods of time. Don’t allow yourself to get involved with a fraud or Ponzi scheme that could potentially eliminate your retirement investments and make it difficult to pay on the mortgage you might get from LowVARates.com.

Plan Ahead

Avoid jumping into the first investment opportunity that you see. Investing takes careful time and planning to get the most benefit from it. Focus on how much you will be able to earn on a monthly basis instead of putting all your energy into trying to get the highest return as quick as possible so you can make payments on your bills, such as a mortgage from www.lowvarates.com. The money needs to last for your lifetime, and the importance of retirement income should not be taken lightly.

Learn Different Ways Of Saving Your Money

Some say love makes the world go round. Many now say money make the world go round. Money is truly a critical factor to living life on the earth as it is. Money defines power and capability. All issues in one way or another lead to money. Even the good book used by the Christians says, "Money answers all things". However, it is never about spending all the time. It is definitely wiser to save than you spend. This assures you of financial security and teaches virtues such as inner discipline, self-control and contentment. Here are a couple of ways you can save money

Cost effectiveness

Different brands are there on the market when you go buy stuff. Make sure to do your research before you use your purchasing power. This enables you to know what product is best; thus, your money never goes to waste. Without compromising on quality, you are also well equipped to choose what product to buy as the prices from different brands of products. It may seem like a small margin but cumulatively it amount to quite a lot, which is utilizable for other purposes or even save it. 

Avoid luxury

As the word suggests, they are not necessary and so it is best to avoid them when and if you can. If you will not need a new function, it is better not to buy the newest phone on the market that is fancy and instead remain with your former. Businesspersons would say there is no return in that investment. Some people even have the tendency of purchasing stuff without proper knowledge of it, just because it is new and advance. You would rather remain with your old school brand if it suits you comfortably. New is not always better. 

Save as you earn

Do not save what remains after spending. Instead, spend what remains after spending. In fact, such habits like smoking, which are expensive can be turned around by indulging good e-cigarettes to help you quit. This is an ideal practice, especially for those who expect something at the end of the month or the week. Develop the habit of setting aside a certain amount of money once your wages and income gets to you. It is best if you transfer it elsewhere and forget about it. It may come in handy during a rainy day, dealing with disasters and emergencies. It is always best if you are prepared. 

Avoid being spendthrift

Being spendthrift should be a great vice for one aiming at saving money. It creates the tendency of spending money in a way that you had not intended to in the first place. One, you get to buy something that you do not really need. It was never initially on your mind as you went out. Most probably, you liked it because of its attractiveness or good bargain. Two, you purchase the item at the expense of another. It is always best if you do not walk around with cash in close range e.g. in your pocket if you have this habit.

Remember that wasting is the opposite of saving. Therefore, apart from setting money to the side, it is also quite helpful if you cut down on costs, especially those that might be unnecessary.

Author Bio

Alisa Martin is a renowned financial adviser all over the country. She also has a passion of keeping her followers informed, thus writing various and diversified topics in her blogs. She is also in the lead front in technological advances, well known in the light of ego ce4 and much more.

How to Get a Loan with a Poor Credit Rating

Whether it was reckless spending that soon taught us a lesson, mismanagement of our repayments or a genuine inability to pay back what we had borrowed, at some point in our lives many of us will find ourselves with a poor credit rating. 

This however does not necessarily mean we can simply afford to forego borrowing any more money, nor that we would not be able to better manage a loan now and though getting a lender to agree to a deal might not be so easy, there are a number of things you can do to increase your likelihood of getting hold of the cash you need.

Expect rejections

Applying to one bank and then giving up upon rejection will get you nowhere. With a poor credit rating, you are immediately a candidate for refusal and should enter into talks expecting the worst while hoping for the best. 

Rejection from one institution does not mean that nowhere will accept your application; time and patience will be required.

Negotiate interest rates

While you still want to get the best interest rate you can possibly get a lender to agree to, you have to understand that the compromise for being accepted with a bad credit history is paying higher interest rates. 

Seeing you as a risky investment means that banks will want a bigger return on their money and as much as it might sting, you have to be willing to accept this if you want the loan application to be approved. 

Be wary of Payday loans

While you are more likely to be accepted for a payday loan, you are also more likely to find yourself in deeper financial trouble if you accept one. 

These short-term loans for small amounts of money are designed to tide you over between pay cheques but they come with huge interest rates and massive penalties should you not pay it off on time. 

So many consumers have found themselves crippled by such loans that there are even investigations underway as to how unfair they may truly be.

Keep it to a minimum

The more you ask for, the more likely a lender is to decline you if you have a bad credit history. Carefully working out the minimum amount you need to borrow and being sure to decline any extras such as Payment Protection Insurance that would boost payments and the investment will seem less risky to the lender, encouraging them to say yes.

Improve your rating

Perhaps the best way to increase your chance of a successful loan application is to actually improve your rating, repair your credit score fast thus making you seem like a safer investment. 

Paying off all other outstanding debts by being punctual and organised with repayments will soon help towards this. Another good tip is to lock away your credit card and try not to use it; as this way you will never exceed your limit or fall behind on payments, allowing your rating to gradually improve without actually doing anything.

Ask elsewhere

Banks may be the traditional source of money but other options are available. Borrowing from family and friends is a great way to get better interest rates and a more lenient repayment schedule. 

Just be sure to write up formal documentation outlining any agreement; the last thing you want is to lose loved ones over squabbles with money if things go wrong.

Preparing for the Future – Costs to Be Aware of

Life is full of surprises, many of which turn out to be financial. Even if you are an excellent budgeter there will probably be something that comes completely out of the blue that will knock you for six. 

Many experts suggest having at least nine months’ worth of income saved up for these unexpected and unplanned for costs. This is rather a huge amount and it’s not always possible. But you can prepare by being aware of some of the most common expenses that are rarely planned for.

Take a look over these expenses and try to find out a way of putting a little bit of money aside each month just in case they affect you in the future.

Presents and Gifts

It is quite astonishing how much money you can spend on buying gifts for others. You may have already planned ahead for special events such as Christmas and even set aside money for the birthdays of family and friends but what about when a friend has a baby, a christening, marriages, your children’s’ friends birthdays, retirements, new homes, or engagements. Life is full of times when gifts are given that fall outside of the usual routine.

Legal Bills

You may need to find the money to cover your legal bills. These can arise in all sorts of situations such as selling a home, illegal activity, suing someone and you should also consider the costs of making alterations to your will and testament, rental agreement or the Cost of gaining power of attorney. Legal bills can cost a small fortune so plan ahead and put money aside now.

Health Related Costs

Medical costs are another expense that can suddenly knock you for six. You may have to cover the cost of prescriptions, have surgery or diagnostic treatments or pay for long term care. Insurance is another expense as well as routine check-ups. It all costs money if you are unable to get the treatment for free or if you would prefer to use a private health care option.

Transportation Costs

Cars eat money when they are healthy and on the road let alone when they need attention. The work required to upkeep a care is constant. You will have service charges but also have to cover the costs of accidents, general wear and tear such as replacing brake pads and tires. If you have a car you will definitely benefit on building up some savings to dip into in the future. 

Losing a Job or Clients

There are not many careers out there that now guarantee that you will be in work for years to come. Finding yourself unemployed can be nerve-wracking. You should aim to have at least three months’ worth of wages saved up just in case the firm you work for closes down or needs to make some cut backs. If you are a freelancer you will also need to prepare for times when work slows down between contracts.

By saving you can at least work to soften the blow of unexpected expenses. Start saving now for a more comfortable future.

The author is a freelance copywriter with an interest in personal and business finance. His work has been frequently published on websites and blogs as well as in magazines over the past four years. Besides writing about finance he also has an interest in writing articles about small business start-ups.

Why SelectAware.com is a Website You Shouldn't Pass Up as a Parent

Guest post by Lynn D

With the way the economy is, you need to pinch every penny that you can in order to survive. Most people can afford the bare necessities, but not always. Imagine how much easier it would be to live your life with a little extra cash in your pocket, simply because you didn't have to spend so much on the same products that you always get.

In other words, imagine if you had a one-stop place for coupons, savings and discounts on the products you already purchase. Imagine if there were a place where you could get together with everyone trying to make their pennies go a little bit further.

Imagine if you had a place online where you could share discounts and deals you've found with other people while simultaneously reaping the benefits of what other people have shared.

It would not only make your life easier, but it would make it possible to hello your family afford the things that they regularly sacrifice because money is simply too tight for luxuries.

Here's the good news: There's an online community where people share deals, discounts, coupons, promo codes and tips for saving money in everyday life. It's a place called SelectAware.com, and there's quite a number of people already using it.

There's a large number of things that you need to survive each day. Things like baby diapers, clothing, doggy kibble and anything else that you need to simply live. With SelectAware.com, it's pretty simple to find all of these things. It's even easier to find time-sensitive discounts and clearances that you otherwise would miss.

That's only the tip of the iceberg as to what makes it good.

You know all those things that you have to give up so that you can afford the bare necessities? You can have some of them, because you're able to save money and then save more on the few luxuries you can manage to treat yourself to. You'll find coupons for things like perfume, automotive services and even travel discounts there..

You'd be amazed at how much you can save with one little promotional code in your shopping cart at the online checkout of a store like Sears. You can purchase those new bed sheets that you've simply given up on for years because you needed to purchase uniforms for your children.

Simply put, SelectAware.com is a great place to save money. The community is friendly, the discounts are useful to almost everything that you could want, and you'll find deals that you would often times miss there. If you're someone who needs to save a little bit of money, then you should give the website a try.

5 Ways to Stay on Top of Your Finances in 2013

Finance (Photo credit: Tax Credits)

When you’ve got a family, house, car and everything else to pay for, your finances can often feel stretched. Sometimes it can be hard to pay the bills and still have enough money left for buying food, clothes and all the other things you need around the home. Everyone deals with their finances in their own way, but there are a number of methods that you can implement yourself if you are feeling bogged down by all of the bills. Here are my own tips for staying on top of your finances in 2013... 

Speak to your suppliers

One of the first things you could do would be to speak to your current suppliers of water, electricity, gas, etc. This is so you can discuss other payment schedules and tariffs that might be more suited to your current situation. If you’ve just had a large bill come through the door, the best thing you can do is speak to your supplier as quickly as possible to come up with an arrangement instead of hiding the letter and pretending it doesn’t exist. You don’t want your essential services to get cut off when you need them each and every day. 

Cut out unessential services

If you are currently paying for services you just don’t need, it might be time to call them up and cancel, or where applicable, cancel direct debits that are set up to take payment from you automatically each month. Types of services this might include could be bolt on packages to your satellite or fibre optic television subscription, music streaming or even various insurance policies than you no longer require. Have a good look at your bank statement to see where you can make quick changes. 

Change your supermarket

Another change you can make is to start shopping at a different supermarket each week. You can use online price comparison sites to compare the costs of a basket of groceries from one store to the next - in many of these, Asda comes out as the cheapest of the main supermarkets but you can find deals at economy shops such as Lidl and Aldi too.

Make more money

If these changes aren’t making much difference to your personal economic outlook, you might need to make more money instead. There are so many new things to try, such as simply looking for a higher wage job, asking for a pay rise, or starting up your own business on the side of your current job. 

Seek further advice

You should be able to seek further debt advice from free services online and in your local area. This could help you from getting into debt, stopping you from getting into more debt, or even to how to get out of it. Sharing your worries can take some of the stress off your shoulders, and they should be able to give you additional tips to help day-to-day.

About the author

Lewis McKinross is a financial blogger based in the UK. He often writes about debt advice and other money saving tips.

A 4 Step Guide for Individuals to Manage their Finances

Finance (Photo credit: Tax Credits)

Financial management is one of the most complex things that one ever comes across. The most difficult part about this is that one needs to change their policies with the fluctuating market conditions and also keep a close eye on the impending threats on the market in order to stay safe from any financial crunch. There are however a few things that are quite common yet effective in helping an individual to manage their finances in the best possible way. 

Start with a proper plan

Starting with a proper plan and then implementing it is an important factor. You need to make sure that you do not miss out on the basics. Make it a point that you note down each and every thing regarding your finances. Be it a new source of income or a new expense make sure that you list each and every thing. That would help you to keep a tab of all the vital aspects. Often it is found that individuals fail to locate the expenses that they have made. 

Budget – a pivotal step

A budget is definitely a pivotal step in order to manage your finances in a safe way. By formulating a budget you will be able to take control on things. Experts opine that many individuals do not usually list the expenses they need to incur or the money that they have earned from any source; hence they lose all kind of control on the transactions. With a proper budget you will be able to priories and differentiate the important expenses from the not so important ones. 

Spending Carefully

Spending money carefully is also another important thing that should be mastered by all individuals. In the backdrop of such a fragile economic condition where the prices of things go up all of a sudden one needs to be careful and ensure that they spend on the necessities in the first place and then spend on the luxuries. 

Investing like a pro

A proper investment is all the more important than all the other things mentioned above. The above mentioned steps will help you to save money but this is going to help you in making more money. Hence this is more important than those. Now you need to make a thorough research in order to find out which investment plan will work for you. There are so many ways in which you can invest your money but choosing the correct one is very important. A wrong investment plan can however wreck your financial career. Always try to invest in things that have an appreciating value as that would help you to get better ROI over a shorter period of time. Real estate for example is a good avenue to invest your money.

These are some of the essential things that must be remembered while making formulating a proper financial plan. Young professionals should be extra careful as they have a tendency of splurging more money in luxury items. It is always a better idea to make your own house before you purchase your own car.

Author’s Bio: Adil Kaya has been writing on finance and related topics for over a couple of years now. His articles are a good source of information for the readers. He also possesses a great deal of knowledge on the ways to find http://www.bahis10.com/. Follow his posts for more details on such topics.

What Is Needed For Retirement

Retirement (Photo credit: Tax Credits)

People should start to think about their retirement needs even at an early age. Before retirement people should be financially prepared. Some people think that it is not necessary to start planning for retirement at an early age. But will find out that retirement will sneak up on you and you will find yourself completely unprepared. So the question of how do I prepare for retirement and how much money will I need to retire remains unanswered. 

How Much Money Will I Need

Many soon to be retirees are more concerned about how much money they will be needed come retirement age. There is no set amount of money that a person should have in order to retire. What you will need depends on what your plans are once retirement comes about. You will need to decide if you want to make any large purchases such as an RV, If you plan on becoming the world traveler and making many trips, or if you just plan on staying in your home and enjoying the life of rest and relaxation.

Not only will you need to figure out what your plans on but also what your day-to-day living expenses will be. Even though you will be retired you will still have your continuing needs. 

Ongoing Debts And Expenses

Another issue to consider when you are trying to figure out how much to set aside for retirement is how much debt you have. You will need to take into consideration how much if anything you still owe on your automobile loans, credit cards or even your mortgage loan. By calculating how much your monthly payments are and how much longer you will have on these payments you can be sure of an approximate amount of money that you will need every month.

Do not forget that you will also have the other monthly expenses to add into your monthly budget as well. These expenses should include any of your ongoing bills such as insurance, utility bills, grocery bills, fuel, as well as any other expense you may have during the month. By including all of these expenses in your monthly budget you should be able to figure out how much money you will need to live on. 

Healthcare Expenses

Unfortunately when a person is getting close to retirement age the cost of their healthcare will be increasing. After all the older you get the more healthcare needs you will have. It is important to have your healthcare needs taken care of for your future. You would not want to have a major healthcare issue that would take up your entire retirement savings. This could cause you to face some serious money problems later down the road.

Finding your retirement could be a very stressful time in your life that can involve many different decisions that need to be met. It is important to be sure you consider all of your expenses as well as any other expenses that you may think can arise. Once you decide on how much it will take to fund your retirement you can figure out the best time for you to retirement and live the life of rest and relaxation.

Author Bio This article is contributed by Janice Thompson. She is a financial journalist. She says success comes to those who believe in the beauty of their dreams. She gives excellent financial tips on debt, credit card, personal loans for bad credit, insurance and advice on her blog.

5 Possible Investments for a Better Retirement

The best type of investment for your future will depend on your age, disposable income and the amount of money that you have managed to save so far. Generally speaking, the older you are the less risks you should take. For example, investing in equities may be a good idea for those in their 20s, 30s and 40s but if you are planning to retire in ten years or less, it is probably best to minimize the percentage of your portfolio that is invested in stocks and shares. This is because stock markets can be quite volatile and if you are likely to need your money sooner rather than later, you may be forced to liquidate your holdings when the market is at a low point, historically speaking. 

Below are five areas in which you might like to invest, with some comments on their suitability for people of different ages: 

1. The equity market – as mentioned above, investing in the stock market, whether via exchange traded funds or directly in individual shares, can provide healthy returns over a reasonable period of time but is not advisable for those that are hoping to retire in the near future. Free online advice such as that offered by moneyvista financial planning and other similar organisations can be very useful when trying to work out which equity funds are the most suitable for your needs. 

2. Government bonds – known in the UK as gilts and elsewhere as treasuries, they are considered to be very low risk investments and because they pay a fixed amount, known as the coupon, it is easy to work out exactly how much income you will receive over time from the government bonds in which you invest. The value at which they can be sold does change but if you are going to hold them until maturity this is not an issue that will concern you. 

3. High interest savings accounts – sadly, these are largely a thing of the past. The low rates set by central banks in developed countries across the globe mean that it is very hard to find a safe home for your cash where you will receive interest payments that exceed the level of inflation in your home country. However, if you are prepared to accept the higher exchange rate risk associated with holding deposits with banks in developing nations, it is still possible to get a good return on your savings in certain parts of the world. 

4. Property – if you had asked a hundred people for investment advice 5 years ago, the chances are that nearly every single one of them would have recommended investing in property for those that could afford it. Recent events may have changed some people’s opinions with regard to the safety of bricks and mortar as a home for retirement funds but residential properties still offer a high potential for capital growth when compared to other investment opportunities. As with stocks and shares, it is inadvisable to put your money into property unless you have plenty of time to ride out any possible downtrends and wait for a recovery. 

5. Antiques and art – although not many financial advisors are likely to suggest investing a sizeable proportion of your retirement funds in Queen Anne chairs or paintings by Old Masters, such objects not only offer the chance of making a big profit over time but they also come with the added advantage of providing their owners with many years of pleasure in the meantime. If you appreciate beautiful things and you don’t mind taking a risk, antiques and works of art could be worth further investigation. 

About the Author: 

The MoneyVista financial planning site is a service that aims to provide users with helpful information on personal finances, covering topics on borrowing, saving, and budgeting.

The Necessity of Individual Retirement Accounts

retirement (Photo credit: 401(K) 2013)

Even if you have quite a long time before you retire, it's never too early to start thinking about a plan. When that day comes, you want to make sure you have enough money saved up and that you are able to live comfortably. What are the benefits if individual retirement accounts, which are sometimes referred to as IRAs?

An Individual Plan

Not everyone has the same needs, and you want to ensure that your personal ones are met. By developing an IRA, you can work to craft a plan that makes sense for you and addresses your personal and financial needs. When you take the time to sit down with a certified financial planner and come up with an individual retirement account, you are being smart about your future. Specifically, you will be able to work toward attaining a specific amount of money to have reserved for you when you retire. In society at large, these accounts allow people to develop a greater sense of personal responsibility.

Personal Responsibility

Let's explore this concept of personal responsibility a little bit more. It is clear from the state of the economy that many people and government entities are not great with money. Therefore, it's also smart to take some steps to amplify your knowledge and to learn more about where your money goes and why it's important. Taking the step to have an IRA, regardless of the specific type, means that you are putting personal stake into your financial affairs and working toward a plan that works for you.

Tax Options

You likely want to know about taxes on these accounts, and CNN Money's article, "Retirement: IRA Investment Advantages" discusses them in detail. The article writes, "There are two types: a traditional IRA offers tax-deferred growth, meaning you pay taxes on your investment gains only when you make withdrawals in retirement, and, if you qualify, your contributions may be deductible...A Roth IRA, by contrast, doesn't allow for deductible contributions but offers tax-free growth, meaning you owe no tax when you make withdrawals in retirement." You don't need to be told that both of these situations are rather desirable.

Withdrawing Money

The end of the article notes, "Further, if you need the money before retirement, there are more opportunities for penalty-free withdrawals." Ultimately, the goal here is to save up as much money as possible before retirement so that you do not have to deal with financial burdens later in life. However, sometimes situations do arise, and you just need to have the cash available now. When that happens, you can turn to your IRA and take out some of the money to help get you through. Since it's your personal account, you do have the freedom to do that.

Working toward an IRA is really a smart idea. Whether you have just entered into the workforce or you are thinking about retiring soon, it's smart to start making a plan that can be really beneficial to you and your financial situation.

Author Jason Harter is a retired accountant who can happily say that he has all of his retirement accounts in proper order. He obtained his Online Bachelor's in Accounting Degree.

4 Budgeting Lessons Families Can Learn from Federal Spending

Family budgets don't work like federal budgets. Still, the average person can learn from the successes and failures of the federal government. These stand out as 4 lessons that we should all learn.

Don't Buy Things You Can't Afford

Everyone knows, or should know, that you can't buy things you can't afford. A big line of credit does not mean it makes sense to spend money that you don't have. Chances are, if you don't have enough money now, you won't have it tomorrow.

Now, the government does this all the time. When you don't include two wars in your budget, you build a huge fence along the Mexican border, and you keep entitlements at about the same level year after year even though you don't have as much money coming in, you end up with a $16 trillion dollar deficit. And growing.

Learn from this. If you can't afford a Ferrari, buy a Corolla. If you can't afford a house, rent an apartment. There are smarter ways to spend money. You just might not like them as much.

Know When to Limit Subsidies

Subsidies are great for certain things. Federal subsidies, for instance, were instrumental in developing the Internet and countless medical breakthroughs that have improved the lives of millions. Even early subsidies to oil companies made sense. When an industry doesn't have the ability to generate profit yet, subsidies let the government give new companies a little push towards success.

It's similar as you giving your child an allowance. The allowance is basically a subsidy. Sure, it's a lot smaller, but it works in similar ways.

The problem is that the government, like some parents, never learn when to let subsidies expire. Once your kid gets old enough to earn a living, you don't need to give her a weekly allowance anymore. That would be like the government giving the oil industry $20 billion a year even though the top five oil companies made $375 million in profits per day in 2011.

Wait, that happened? You don't need a masters in public administration to see why that doesn't work.

Stop Relying on Fossil Fuels

Fossil fuels are considerably more expensive than you think. You might get a stress headache while pumping $5 per gallon gas into your car, but you're not even thinking about the tax dollars that were used to pay the subsidy mentioned above.

The fact of the matter is that the country and its people need to rely less on fossil fuels. Riding a bike not only uses less money, it contributes to your health, which will become increasingly important as healthcare costs continue to skyrocket.

 

More Money or Less Spending: You Have to Decide

The government and families face a similar choice: they can either make more money or spend less money. For the government, making more money means raising taxes. For your family, that means getting a higher-paying job or picking up extra hours.

For the government, spending less money means cutting programs, staying out of wars, and limiting subsidies. For families, it means living within your means by setting a budget and sticking to it, even if it means you don't get all of the things you want.

What other lessons do you think families could learn from the federal government?

Seek Investment Advice and Have a Good Plan Ready for Your Retirement

retirement (Photo credit: 401(K) 2013)

Maybe you have just recently entered into the workforce, and retirement seems like it's so far away. Despite this feeling of yours, it's important to seek out investment advice and start to plan for retirement. Why is this necessary so early in the game?

Knowing Your Options

One of the reasons why you should start looking into some advice is because you do may not really know what all of your options are. For example, let's say that one of the options in which you are interested requires that you start early on in your career to have a sizable amount of money for when you retire. However, if you do not look into such a plan early on, then you might not be able to get all of the benefits from it.

Backup Funds

Sometimes, situations arise in life that we really have no control over, and the only way to deal with them is to have a large sum of money. Some types of retirement funds, 401ks, for example, allow you to start working toward these types of goals right now. For example, let's say that you really needed some money a few years down the road, and you have a decent amount saved up in your 401k. You are usually able to take a loan out against yourself to get you through the situation.

Reaping the Benefits

At some point, you are probably going to retire. Even if you really love the job you have, a time may very well come when you are simply unable to do the job to the best of your ability anymore. While this time may seem to be so very far away, it is wise to start planning for it now. You do not want to reach retirement only to feel regret about the way you have handled your financial affairs. Yes, it might be a difficult way to think about the future, but at least you are being smart and being prepared.

Professional Advice

The other part of this equation is to look for professional advice as opposed to using only what is being presented in front of you. So many different possibilities exist, and it's hard to learn about all of them by yourself unless you are a professional in the field. Therefore, you really need to make this conscious effort to learn about the different possibilities that stand before you and to choose a plan that works for your situation. Certified financial planners and accountants are the people who can really help you out when it comes to sorting through all of this information and picking the best programs.

As you can clearly tell, the time to get started on a plan for your future is right now. The longer you wait, the less time you have to save up money and make an exciting and appealing retirement situation for yourself. No matter how young you are, it's never too early to start planning for the future in a smart and logical way.

Author Jason Harter is an accountant who also works in the finance department of his firm. He deals with the payout of the retirement funds, and is an expert on how to use those funds most efficiently. Jason obtained his BS in Accounting Online degree.

Confused About Retails Bonds? Learn How to Start Investing

Interest Rates (Photo credit: 401(K) 2013)

With interest rates on savings accounts still rooted to rock bottom, many people are looking for alternative places to invest their cash to get a decent return.

One such option is a retail bond. Not everyone will have heard of retail bonds and they may well sound like a complicated financial instrument but in reality are relatively straightforward. They allow the individual to control the level of risk they are exposed to.

If you think you might be interested in investing in retail bonds and want to know more, read on to find out more.

Retail bonds: the basics

A retail bond is simply a way of investing your money in a certain company, which not only returns your capital at the end of an agreed period, but also pays you interest along the way.

Cash flow can be tough for a company to raise and when it comes to growth and expansion, an injection of capital is needed. One way of getting this is to create a series of bonds that investors can buy. The company offers a guaranteed interest rate in return for the use of the cash for the agreed period. The concept really is that simple.

The amount of interest offered will depend on the size and stability of the company. Large organisations such as Tesco might offer bonds with an interest rate of around 5-6% whilst a smaller, less secure business might have to give an investor around 10% in order to be sufficiently attractive. As a general rule, the higher the rate of interest, the more risky the investment is.

How do I buy a bond?

If you already have an investment portfolio, the chances are that you have either a wealth manager or a stockbroker who executes deals on your behalf. They will be able to purchase a retail bond upon your instructions.

If you are new to investing, it is possible to set up an account with a stockbroker on an 'execution only' basis, which means you will not be receiving advice or management services. This will be the cheapest way for you to get your foot onto the ladder.

When you are ready to purchase your bond, there are several factors you need to ensure you have carefully considered. How long you want your money to remain invested for, the level of risk you are willing to accept and the return you are hoping to receive are all key and will help to determine your choice of company to purchase the retail bond from.

Once you think you may have identified a suitable target - research, research, research. A company that offers a higher interest rate will be at a greater risk of going bust or defaulting on the debt, so think very carefully before ploughing your money in.

To summarise, retail bonds are very accessible to the general public even though they may not be the most well-known way to invest. However, with detailed planning, research and clear goals, it is possible to secure a much better return on your money than with a bank.

Samantha Wood is an experienced finance writer but wishes she had more money to invest. To keep up to date with the latest opportunities and news, Samantha uses sources such as Investing In Retail Bonds.  

8 Great Tips to Save Money in 2013

With high inflation rates, the current state of the economy and ever-increasing inflation rates, it is never easy to save money. With 2013 looking to be just as difficult as recent years, we look at 8 ways you can defy the odds and save money, from reviewing your mobile phone contract to saving energy at home. 

1 - Online Banking 

Setting up and regularly monitoring your online banking is a great way to keep on top of your finances and help you save money. You have the chance to reduce costs or perhaps cutting out expenses in certain areas just by reviewing what you are paying for. 

2 - Sell Your Items 

A great way to raise some quick cash is to sell your items, from books to DVDs to old phones. Whether you choose to cash in at a pawnbroker, a car boot sale or even online, there is money waiting to be made in your own home. 

3 - Compare Energy Providers 

As recommended by The Finance Legend - the internet now holds all the information you need so why not research who is your cheapest local energy provider to help you save. With energy rates increasing again in 2013, even a small saving would help you out in the long term. 

4 - Mobile Phone Contract 

Reviewing the amount of calls and texts you send each month against your contract details can help you save money, especially if you are using a lot less than you are paying for. On top of this, get quotes from a range of different network providers to find the best deal for you. 

5 - Low Cost Loans 

If you want to become more energy efficient around the home then consider taking out a low cost loan in order to help you carry out repairs and DIY. On top of the savings made from cutting energy costs you could also increase the value of your home. 

6 - Manage Your Food Shopping 

Food shopping is all about planning; make sure you know how much food you will need until your next big food shop. Cutting corners, takeaways and last minute runs to the corner shop will end up costing you much more than you expect. 

7 - Save Energy at Home 

Simple energy saving tips such as ensuring all taps and lights are switched off when not in use, turning down the thermostat by a few degrees and installing energy monitors can help you save money in the long-term. 

8 - Be Careful With Credit Cards 

With the high interest charges associated with credit cards, try to plan out the situations in which you would use this over your regular debit card. That way you limit your charges and effectively save money for the future. 

In summary, it is vital to plan and review your current and future expenses. Remember to work out where you could be saving money in ways such as using energy monitoring equipment around the home or getter a better contact for your phone. Good luck to everybody saving in 2013! 

Author Bio: Luke James writes for thefinancelegend.com. He has been writing about finance for years and enjoys holding seminars in which he gives out financial advice to others.

10 Products to Cut From Your Household to Save Money

When people are looking to cut their budget, they try to find clever ways to save money. Some will reduce services such as cutting the cable bill, or the cell phone bill, and others will start clipping coupons to save on their family's needs. However, another source of saving is to simply stop buying things your family doesn't actually need. Below you will find ten items that are easy to cut from your family's household to save money. 

#1 Shower Gels

Using a shower gel while showering can feel quite nice. However, you don't need to buy expensive shower gels to do the job right. In fact, bar soap is much less expensive than shower gels, and it accomplishes exactly the same purpose. If you can't live without the exfoliation benefits that come in many shower gels, you can accomplish the same task with a little sugar and a cheap dollar store loofah. In addition to lasting longer and being cheaper, bar soap is less likely than shower gel to be wasted. This is especially true if you have young children in the house. Many bar soaps are also scented like your favorite shower gel, so you don't have to give up any delicious scents to save money either.

#2 Aftershave

Many men buy aftershave, but how many actually use it. The truth is aftershave is a truly unnecessary expense. Instead of buying aftershave, use a shaving cream that features a good moisturizer. If you or the man in your life like to use aftershave because of its scent, it is vital to note that scented aftershave doesn't last near as long as cologne. Even layered with cologne, aftershave adds remarkably little to the lasting scent of cologne.

#3 Gym Membership

Gym memberships are a splendid idea in theory. However, for many people the memberships are simply unnecessary and a waste of money. To make this matter even more expensive, many gyms require a yearly contract when you sign-up. This means if you lose interest or simply don't have the time to use your gym membership, you still have to pay for it. When considering a gym membership, be honest with yourself about your intentions. Another alternative is to find local classes that allow you to pay by the class instead of making you sign a contract. If you pay by the class, you are only paying for the time you spend working out, and not time you thought you would spend in a gym.

#4 Washing Machine Cleaner

Washing machines are just like any other major appliance in your home, which means from time to time, you must clean it. Failure to clean your washing machine properly can result in clothes that aren't thoroughly clean, and a funky odor coming from your machine. While cleaning your washing machine is necessary, wasting money on expensive washing machine cleaners is not. Instead, take a look in your cleaning supplies, and you will likely find everything you need to get your washing machine sparkly and odor free. The best homemade washing machine cleaner includes adding vinegar or lemon juice to your machine and running a full cycle. If you are worried about odors, run the machine on its hottest cycle to get rid of any smell in the machine. To avoid the musty smell that invades many washing machines, make sure to leave the lid open after you empty a load of laundry into the dryer. For best results, you should leave the lid open until the machine is totally dry on the inside.

#5 Cord Organizers

No one wants to have a pile of messy cords hanging or piled on the floor. However, it also isn't necessary to buy cord organizers to handle this type of mess. Instead, use bread ties or garbage ties to neatly and safely nestle cords together. You will accomplish the same look, and won't have to spend an extra dime to achieve this. After all, you are probably buying bread or garbage bags anyways, so why throw away the ties?

#6 Fabric Softener

Fabric softeners are recognized for keeping close fluffy, reducing wrinkles, eliminating static cling, and for being a bit pricey. To avoid spending money on fabric softener, you can use a tennis ball in the dryer to fluff clothes and help reduce wrinkles. A simple way to eliminate static cling without using fabric softener is to crumple a small ball of aluminum foil and toss it in the dryer.

#7 Excessive Auto Insurance

Many people buy car insurance and never take a look at the policy again unless they need to file a claim. Instead of just burying the policy in your file cabinet, you should go over the policy at least once a year. In some cases, you could be paying for excessive auto insurance that you just don't need. This is especially crucial if your lifestyle changes, you pay off a car listed on the policy or you move. Looking over the policy every year and reducing the coverage that you simply don't need can help you save a great deal of money.

#8 Tax Preparation

In life, people can count on two things; death and taxes. In fact, taxes have to be filed every single year. If you pay to have your taxes done, you could be wasting a ton of money. Instead of paying a tax preparation company or an accountant to do your taxes, you can file the return yourself. Many tax filers actually qualify to file their taxes for absolutely no cost. To learn more about do-it-yourself tax filing, you can visit www.irs.gov.

#9 Stain Remover

No matter how careful or neat you are, everyone probably experiences a stain or two in their life. Whether it is on your carpet, your upholstery or your wardrobe, stains can happen anywhere. A trip to any drug store will leave you with tons of expensive options to obliterate the stain that you incurred. However, you can remove many stains with ease, and with items you already own in your home. Popular stain removing items that you probably have in your cupboard include vinegar, shaving cream and dish detergent. So, the next time you are tempted to run out and buy expensive stain remover, think about the items you already own, and see if you can remove the stain without spending any money.

#10 Drain Unclogger

A clogged drain or a clogged toilet can be an incredible nuisance. When this occurs many people go to the store and purchase do-it-yourself drain uncloggers. While these products usually do the trick, it also comes with a hefty price tag. Fortunately, you don't need these type of products to handle many simple pipe clogs. In fact, a combination of baking soda and vinegar will often unclog the toughest clogs imaginable. Better yet, this homemade drain unclogger is also a healthier option for the environment and your family.

Using any of the tips above will help you spend less. It is important to remember that just because you have always paid for something, doesn't necessarily mean you have to. The next time you think you need to buy a certain product to meet a particular need, take the time to consider if you truly need to buy it, and whether you can get the same results with something you already have in your home.

Kevin Beene is a financial consultant who enjoys sharing his tips on saving money. His articles appear on a number of lifestyle and personal finance blogs. Visit CheapAutoInsurance.org for quotes and more information.


Reference:
http://lifehacker.com/5832853/top-10 -- products-you-dont-need-to-buy-because-you-already-have-them-in-your-home http://frugalliving.about.com/od/homemaintenancerepair/ht/Clean_Washing_Machine.htm 

Saving Money Can Become an Interesting Hobby

The idea of saving money is something which we often look on as being a bit boring but does it have to be like this or could you spend less while having a good time?

A good place to start looking at saving money is around the home. Houses can eat up a huge amount of our wages if we aren’t careful so any little tips or tricks to help us spend less are more than welcome, especially if they can turn into exciting hobbies. The following are a few of the best ideas to get you started.

Grow Your Own Vegetables

One of the simplest ways of cutting back on your monthly food budget is to set up a vegetable patch in your garden.  There are some other great benefits to be had from doing this as well. For example, you will be eating more healthily if you grow your vegetables in a completely organic way. If you have children then this can also be a terrific way of showing them how to live a sustainable and environmentally friendly way. This method isn’t a huge money saver on its own but if it encourages you to eat more home cooked meals then it may have a knock on effect of helping you spend less on takeaway food and ready meals.

Do Your Own Repair Jobs

Perhaps a bigger and more impressive saving will be made when you start carrying out all those little repair jobs around the house. Every property needs things done to it now and then but calling in the experts can be a hugely expensive business. Instead of doing this you could get, for example, some plastering training carried out. Learning how to do jobs like this can be a great boost to your confidence and it can also save you a lot of cash in the long run. The exact skills you look to pick up will probably depend upon what you feel most comfortable with the idea of doing. However, you should also bear in mind the sorts of problem which you think that your house could be most prone to. If you know that it has had problems with dodgy plasterwork or badly installed pipes in the past then you might already be half expecting the next problem to come from those areas.    

Make Your Own Furniture

The idea of making your own furniture might sound terribly adventurous but it isn’t as difficult as you might think, and it could save you a fortune as well. The making of a new table or chair is a relatively long project and you will want to take it one step at a time, though. Thankfully there are plenty of internet sites and YouTube videos which will help you get going. If you learn it well and really enjoy doing it then this could even up some business opportunities for you if you feel confident enough to sell some of your furniture to other people.