Getting the Highest Rates on CDs
August 8, 2009 by admin · Leave a Comment
It appears that low interest rates are going to be sticking around for a while. This makes it an opportune time to get as much of a return on your bank deposits and the best cd rates as you can. Lately, bank deposits are paying out more than money-market funds. However, unlike all these mutual funds, your deposits are federally insured. There are a few steps that you can take to increase the money you are making on your deposits.
Keep an eye on websites that regularly monitor high yield accounts, just so you know what to expect at any given time. There are plenty of sites out there; something like bankrate.com should be sufficient. Also search online for high-yield bank CDs. A number of great offers should come up immediately. Be cautious since some of them might be a scam or may not be based in the US. Verify their legitimacy through the FDIC. Their website is the easiest way to do this. Just put in their name and you will find out if they are a real company. No matter what if you are doing business online, make sure you are cautious. If something sounds too good to be true, it probably is.
You can also look into an account with a credit union. They tend to offer higher yields than banks. No matter what account you choose, try using a laddering strategy to earn higher yields over time. This involves staggering your maturities. For example, if you have $10,000 to invest don’t put it all into a 5-year CD account. But some in a one year, some in a two year and so on until you run out of money. Then you have a CD account that matures every year for a number of years. Over the long term, you will get a higher return this way.
If rates start to rise, stick only with short term CDs. When the rates are relatively stable, this is the time to invest in long term CDs. This way if the stable rate starts to fall, your rate is locked in no matter what. But if the rates are continuing to rise, you capture it on its way up with the short-term accounts.
Saying Goodbye to Credit Cards for Good
May 17, 2009 by admin · Leave a Comment
Saying goodbye to credit cards is a way to manage your debts and/or reduce your debts. If you tend to be the kind of person who uses your credit cards for any random purchase and not just for necessities or emergencies, then you might find yourself dealing with the down side of credit card woes before you know it.
Zero Percent Credit Card
One option is to transfer your debt to a credit card with a zero percent interest rate. This has a negative side however. While the offers you receive in the mail might seem welcome, it is important that you check the fine print first. Very often the card that claims to be a zero percent card is only such for a relatively short period of time. Once the introductory period is over the rate can climb to a number that will make you shudder.
Budget and Save Effectively
Saying goodbye to credit cards is possible if you learn how to budget your money effectively and save for big purchases. If you wish to buy a new computer, a new appliance or a new couch for your living room then start saving your money. Whether you save it in your bank account, under your mattress, in an orange juice container in your refrigerator or in a piggy bank, just save your money and watch it grow!
Say No to Impulse Buying
With that said, avoid impulse shopping as this is one way to cause your money to become out of your control. How can you say goodbye to your credit cards if you decide to buy on a whim? If you know that there is a certain store that offers too many temptations then steer clear of it.
Stopping spending completely is not realistic but training yourself to create a budget that works for you and your family and takes into consideration all of your debts and household expenses is doable. Just make sure that you leave a little room for some fun in your budget. Doing these things can help in saying goodbye to your credit cards for good!
Save An Argument , Agree On Major Purchases
May 15, 2009 by admin · Leave a Comment
One area of contention that is constituent in any marriage or relationship is the subject of money. A large majority of martial problems begin and end over money. Spending and overspending are the usual suspects. No one like to be surprised with a new something or other that they did not expect. So how do you overcome the issue of buying or spending money when you have a financial partner? Accountability and commitment.
Accountability usually scares people away and the truth is it probably scared some people away from this article. Commitment may be even worse. Success in personal finance with your partner requires both.
It takes commitment to each other to mange your finances in a way that insures you have more money than bills at the end of the month. It also takes a measure of accountability.
How? I thought you would never ask. My wife and I have an agreement. We are both allowed freedom to spend money for day-to-day items. However if we want to spend say 100 bucks for a new dress or $ 200.00 for a new accessory for the car, we have to agree.
Simply put the conversation goes something like this . Hey sweety I want to spend $ 100 on this dress I saw at the mall. It is on sale, is that ok? I reply, No baby I don’t think that is a good idea this month. A Yes and a No = a No. Get the picture. This system builds accountability and commitment to your finances. Try it , you will really dislike it at first, but it will grow on your and so will your savings account
Money Saving Habits , Pay Yourself First
May 15, 2009 by admin · Leave a Comment
What if I asked a few questions? Are you saving money? If so, how much are you saving? Saving money is one of those tasks that are so much easier said than done. Saving money is a necessary requirement for building wealth. Don’t misunderstand; saving money is not the same thing as investing. Saving money is only really effective when you are saving it for a purpose. So how do you save money ?
Pay Yourself First
As a young man I had a conversation with and older wiser and I might add wealthy man who told me I should pay myself first. I thought that was an interesting concept but I did not come anywhere close to doing as he had said. Whether you get paid on the first of the month, weekly , or twice a month, make the fiorst check you write to yourself. Before anyone out there start howling about how they barley have enough money to pay the bills they have , let alone pay themselves, stop it. If you can only afford 5% of you gross income, write that check first. We will talk about how to increase the amounts later.
Put Your Savings In A Safe Place
Im not only talking about keeping in a bank or safety deposit box, I am referring to keeping it away from you, If you have never saved money before this process will not be easy for you. An account that requires a waiting period to make a withdrawal will help deter you from robbing the piggy bank.
How Much Money To Save
Financial experts often recommend having enough money in an emergency fund to cover at least 3 to 6 months worth of household expenses). Sound impossible? It really is not once you commit to the savings plan. Remember this is a savings account, reserved for unforeseen expenses, job loss, and so on. Unemployment is going to reach 10% this year. How many of those people do you think wished they had saved money?