We ended the week down a bit in the stock market, but the bright side of that, for me anyway, is my order for Chimera doesn't go through until Tuesday, so I'll be getting more shares at a lower price. Which also means that I'll be earning a higher yield on more shares of stock, so it's making the buy a little less risky.
Got a little over a 5% raise from work, nothing to get too excited about but it will add to the amount of money I have to invest going forward. Starting next month I'll be adding the extra cash to my savings and investment accounts, along with the money I'm saving from using more coupons and rebates on purchases. So that should help boost the balances in my accounts by the end of the year.
Got some great news yesterday from the attendant where I buy gas for my car. He told me the price of gas should be dropping by 26 cents a gallon within the next couple of days, so I'm waiting to fill up. A drop of 26 cents a gallon should save me considerably on fuel costs. With the money I'll be saving on gas for my car, I should be able to pay the lower electric bills for my apartment. This time of year, the electric bills are usually a lot less since I've stopped using the heat and haven't yet had to turn on air conditioning. My current bill is only $25, only 1/4th the $100 that I normally budget for utilities.
Showing posts with label savings. Show all posts
Showing posts with label savings. Show all posts
Saturday, May 7, 2011
Saturday, August 7, 2010
TIM GEITHNER SAYS RICH SHOULD PAY MORE TAXES????
Am I the only one who thinks it's the height of hypocrisy for Tim Geithner to be on his high horse about the Bush tax cuts? Correct me if I'm wrong, but isn't this the same guy who almost blew his appointment as Treasury secretary for failure to pay all his taxes? So now he would have us believe that the United States economy is doomed if the Bush tax cuts remain in place, tax cuts which he most likely benefited from.
I would like to remind Mr. Geithner that not all people who benefit from dividends and capital gains are "rich". I certainly would not be considered "rich" by any standards, but I do benefit directly from dividends, capital gains and interest on my investments. Is there any good reason hard working Americans, who manage to save and invest for their future, should be forced to pay higher taxes to support those who fail to do so? I don't believe there is.
You can't fix unemployment and insufficient government revenues by taking money from one group of citizens and giving it to those who are less productive. It's this type of thinking that is giving fuel to the rumors of the current administrations move towards a more socialistic form of government. It did not work in the Soviet Union. It did not work China. It did not work in Cuba and it will not work in the United States of America.
Promoting savings by low taxes encourage investments, which in turn generate capital for businesses. When businesses have adequately capitalized and are free from excessive government taxes and restrictions, they hire more workers. When more people are working, more people are spending and state and federal governments benefit from greater tax revenues. It's just that simple. If Mr. Geithner and anyone else in Washington doesn't understand this, they should not be there. We should all keep that in mind during upcoming elections.
I would like to remind Mr. Geithner that not all people who benefit from dividends and capital gains are "rich". I certainly would not be considered "rich" by any standards, but I do benefit directly from dividends, capital gains and interest on my investments. Is there any good reason hard working Americans, who manage to save and invest for their future, should be forced to pay higher taxes to support those who fail to do so? I don't believe there is.
You can't fix unemployment and insufficient government revenues by taking money from one group of citizens and giving it to those who are less productive. It's this type of thinking that is giving fuel to the rumors of the current administrations move towards a more socialistic form of government. It did not work in the Soviet Union. It did not work China. It did not work in Cuba and it will not work in the United States of America.
Promoting savings by low taxes encourage investments, which in turn generate capital for businesses. When businesses have adequately capitalized and are free from excessive government taxes and restrictions, they hire more workers. When more people are working, more people are spending and state and federal governments benefit from greater tax revenues. It's just that simple. If Mr. Geithner and anyone else in Washington doesn't understand this, they should not be there. We should all keep that in mind during upcoming elections.
Monday, September 21, 2009
25 Ways To Save More For Investing
1. Start saving something today. It doesn't have to be a large sum. Even on a tight budget, a small amount adds up over time. Get an envelope, cookie jar, coffee can or whatever you like and set aside the same amount every week.
2. Treat saving as a bill. Consider having the amount transferred automatically from your checking account or paycheck. Pay your account every month or every two weeks.
3. Empty your pockets -- or your purse -- at the end of the night. Put all the change into a jar. Not only will you feel lighter, but your spare change adds up a lot faster than you think.
4. Just paid off a big debt such as a car loan or child's tuition? Keep making the payments -- this time to yourself.
5. Trying to lose weight this season? Each time you go without dessert, that midafternoon candy bar break or that fatty mochaccino at the coffee shop, put the cost of your forgone goody into your savings jar.
6. Involve the whole family in saving. Plan a treat for everyone when you reach the savings goal. Make it something everyone will look forward to, but inexpensive, such as a day at the zoo, museum or beach.
7. Some online banks offer high-interest checking accounts. If these accounts meet your needs when it comes to balance requirements, debit card usage and convenience, why not earn interest on your balance?
8. Stay up-to-date on your checking balance, either by balancing your check book or checking your account online frequently. You'll avoid overdraft fees and better track what goes in and out.
9. If you bounce a check, and it's the first time, ask for forgiveness, including waiver of any fees. A bank will sometimes do that for goodwill. Of course, don't become a repeat offender.
10. Make it a habit to use only your bank, thrift or credit union's ATMs. You'll avoid paying surcharge fees to your bank and the other bank. Or consider opening an account with an online bank or brokerage that covers out-of-network ATM fees.
11. To avoid ATM fees, get extra cash at the grocery store -- most of the grocery store point-of-sale terminals are free.
12. Think before you charge. Unless you're in the habit of paying your credit card bill in full each month, don't use the cards for anything you can eat or wear and avoid using credit cards to buy "wants" such as a new stereo or TV. Wait until you have the money to buy it.
13. If you're knee-deep in credit card debt, get rid of all of the credit cards but one. Take that one and make it hard to impulse shop with -- freeze it in a bowl of water in your freezer.
14. Don't take cash out of your credit card. The rate for cash advances is much higher. And there is no grace period -- you start paying interest right away.
15. Read your monthly credit card statements carefully. Look out for hidden charges, such as credit insurance.
16. Don't pay for theft insurance on your credit card. If your credit card is stolen, you're only liable for $50 at most.
17. Avoid credit card fees. Dodge $39-and-growing fees by not exceeding your credit limit. And send your payments in early -- if you're five minutes late it could cost you $29 or more.
18. Pay more than the minimum. It'll take a very long time and cost you a lot in interest to pay off your balance if you only pay the minimum.
19. Don't be late on any loan or credit account payment. Credit card companies check their customers' credit reports frequently, looking for any late payments to justify raising the interest rate -- a phenomenon called "universal default." In some cases, triggering a universal default can double your credit card's interest rate.
20. Negotiate better terms -- lower interest and higher limits -- with your credit card issuer, especially if you've had a year of on-time payments.
21. Consider transferring your balances from high-interest cards to low-interest credit cards. Then, make the same payment as before, or double the minimum.
22. If the opportunity exists, work overtime or an extra shift at least once or twice a month.
23. Participate in a 401(k) or 403(b) plan. Your contributions are made with pretax dollars. You save for the future while reducing today's taxable income.
24. Set up a tax-advantaged IRA or Roth IRA account to build up your retirement savings.
25. Save your raise. The next time you get a raise at work or a tax refund, consider directing half to savings. If you're not used to the money, you won't miss it.
2. Treat saving as a bill. Consider having the amount transferred automatically from your checking account or paycheck. Pay your account every month or every two weeks.
3. Empty your pockets -- or your purse -- at the end of the night. Put all the change into a jar. Not only will you feel lighter, but your spare change adds up a lot faster than you think.
4. Just paid off a big debt such as a car loan or child's tuition? Keep making the payments -- this time to yourself.
5. Trying to lose weight this season? Each time you go without dessert, that midafternoon candy bar break or that fatty mochaccino at the coffee shop, put the cost of your forgone goody into your savings jar.
6. Involve the whole family in saving. Plan a treat for everyone when you reach the savings goal. Make it something everyone will look forward to, but inexpensive, such as a day at the zoo, museum or beach.
7. Some online banks offer high-interest checking accounts. If these accounts meet your needs when it comes to balance requirements, debit card usage and convenience, why not earn interest on your balance?
8. Stay up-to-date on your checking balance, either by balancing your check book or checking your account online frequently. You'll avoid overdraft fees and better track what goes in and out.
9. If you bounce a check, and it's the first time, ask for forgiveness, including waiver of any fees. A bank will sometimes do that for goodwill. Of course, don't become a repeat offender.
10. Make it a habit to use only your bank, thrift or credit union's ATMs. You'll avoid paying surcharge fees to your bank and the other bank. Or consider opening an account with an online bank or brokerage that covers out-of-network ATM fees.
11. To avoid ATM fees, get extra cash at the grocery store -- most of the grocery store point-of-sale terminals are free.
12. Think before you charge. Unless you're in the habit of paying your credit card bill in full each month, don't use the cards for anything you can eat or wear and avoid using credit cards to buy "wants" such as a new stereo or TV. Wait until you have the money to buy it.
13. If you're knee-deep in credit card debt, get rid of all of the credit cards but one. Take that one and make it hard to impulse shop with -- freeze it in a bowl of water in your freezer.
14. Don't take cash out of your credit card. The rate for cash advances is much higher. And there is no grace period -- you start paying interest right away.
15. Read your monthly credit card statements carefully. Look out for hidden charges, such as credit insurance.
16. Don't pay for theft insurance on your credit card. If your credit card is stolen, you're only liable for $50 at most.
17. Avoid credit card fees. Dodge $39-and-growing fees by not exceeding your credit limit. And send your payments in early -- if you're five minutes late it could cost you $29 or more.
18. Pay more than the minimum. It'll take a very long time and cost you a lot in interest to pay off your balance if you only pay the minimum.
19. Don't be late on any loan or credit account payment. Credit card companies check their customers' credit reports frequently, looking for any late payments to justify raising the interest rate -- a phenomenon called "universal default." In some cases, triggering a universal default can double your credit card's interest rate.
20. Negotiate better terms -- lower interest and higher limits -- with your credit card issuer, especially if you've had a year of on-time payments.
21. Consider transferring your balances from high-interest cards to low-interest credit cards. Then, make the same payment as before, or double the minimum.
22. If the opportunity exists, work overtime or an extra shift at least once or twice a month.
23. Participate in a 401(k) or 403(b) plan. Your contributions are made with pretax dollars. You save for the future while reducing today's taxable income.
24. Set up a tax-advantaged IRA or Roth IRA account to build up your retirement savings.
25. Save your raise. The next time you get a raise at work or a tax refund, consider directing half to savings. If you're not used to the money, you won't miss it.
Friday, June 19, 2009
Little Changes Can Make a BIG Difference!
I know a lot of people who say they just can't save or set aside any money to invest. Their budgets are just too tight, there is nothing they can cut back on to start an investment program. What they often overlook, however, are the small changes they can make in their lifestyles that lead to big differences in their future well being.
You've probably heard of the "Latte factor", where you give up the cup of latte a day and put that money into savings. This is a one very good example of a small change that can really add up to a big difference in the amount you save. When I first started saving for my investment program, one of the small changes I made was, literally, small change. By that I mean, I stopped spending my change. Any time I paid cash for purchases the change went in to my pocket and as soon as I got home, I put the change in a jar. It's such a small amount, you don't really miss it from your spending money, but it does add up. On average, I save $250 every 3 months this way. That adds up to $1,000 per year. If you started this habit at age 20 and put the money in a non-interest bearing account, you would still end up with $45,000 by age 65. Not a lot, true, but if you invested that amount in a dividend paying stock or even a money market account, you would have several thousand more by age 65. All from saving spare change!
Once you make one small change and stick with it, you'll find yourself looking for more ways to save and build your investments. You might shop for insurance on your car and find out you can save $200 or $300 per year or more, or you might decide to eat out less, or take your lunch to work. Whatever the case may be, by just saving small amounts, just making small changes, it can make a really BIG difference in your savings and investments.
You've probably heard of the "Latte factor", where you give up the cup of latte a day and put that money into savings. This is a one very good example of a small change that can really add up to a big difference in the amount you save. When I first started saving for my investment program, one of the small changes I made was, literally, small change. By that I mean, I stopped spending my change. Any time I paid cash for purchases the change went in to my pocket and as soon as I got home, I put the change in a jar. It's such a small amount, you don't really miss it from your spending money, but it does add up. On average, I save $250 every 3 months this way. That adds up to $1,000 per year. If you started this habit at age 20 and put the money in a non-interest bearing account, you would still end up with $45,000 by age 65. Not a lot, true, but if you invested that amount in a dividend paying stock or even a money market account, you would have several thousand more by age 65. All from saving spare change!
Once you make one small change and stick with it, you'll find yourself looking for more ways to save and build your investments. You might shop for insurance on your car and find out you can save $200 or $300 per year or more, or you might decide to eat out less, or take your lunch to work. Whatever the case may be, by just saving small amounts, just making small changes, it can make a really BIG difference in your savings and investments.
Sunday, May 31, 2009
An Easy Extra $39,000 For Retirement!!!
A few days ago I wrote about the credit card companies who seem to be on a spree to fleece Americans out of even more of their hard earned money. To give myself and some of my readers a little more incentive to pay off the charge card balances, I figured up how much extra money I would have for retirement if I pay off my cards and divert all the money I currently spend on credit card payments to a simple, no interest account.
For the past several months, I have paid an average of $250 per month in credit card payments. Depending on your current credit card debt, this may sound like a great deal, or not much. At any rate, when I finally have my balances paid in full, I plan to divert this money to my investment account. I also plan on working for at least another 13 years. So $250 per month times 12 months comes to $3,000 per year. Multiply $3,000 per year times 13 years and it comes out to a whopping $39,000. Since I'm currently paying this money out every month, I won't miss it if I continue paying it to myself after I pay off my credit cards. The $39,000 total is the amount I would have in 13 years if I simply put the money in a non-interest bearing account. How much will it be in an interest bearing account or if I invest it in stocks? I'm thinking it could add substantially to my retirement.
Now let's add in the money I'm saving by not smoking. (I quit 5 weeks ago) On average I spent $80 per month on cigarettes, was never really a heavy smoker. $80 times 12 months equals $960 per year. $960 times 13 years comes to $12,480. Add the $12, 480 to the $39,000 from above and it comes to an astounding $51,480!!!
Just a little thought and a few minor changes to our lifestyles now, can make a BIG BIG difference when it comes to retirement.
For the past several months, I have paid an average of $250 per month in credit card payments. Depending on your current credit card debt, this may sound like a great deal, or not much. At any rate, when I finally have my balances paid in full, I plan to divert this money to my investment account. I also plan on working for at least another 13 years. So $250 per month times 12 months comes to $3,000 per year. Multiply $3,000 per year times 13 years and it comes out to a whopping $39,000. Since I'm currently paying this money out every month, I won't miss it if I continue paying it to myself after I pay off my credit cards. The $39,000 total is the amount I would have in 13 years if I simply put the money in a non-interest bearing account. How much will it be in an interest bearing account or if I invest it in stocks? I'm thinking it could add substantially to my retirement.
Now let's add in the money I'm saving by not smoking. (I quit 5 weeks ago) On average I spent $80 per month on cigarettes, was never really a heavy smoker. $80 times 12 months equals $960 per year. $960 times 13 years comes to $12,480. Add the $12, 480 to the $39,000 from above and it comes to an astounding $51,480!!!
Just a little thought and a few minor changes to our lifestyles now, can make a BIG BIG difference when it comes to retirement.
Monday, May 26, 2008
Summer Cost Cutters For My Investments
For traders in the stock market, summer is usually a time for laying low. "In May, go away" as the saying goes. For my personal investments it is usually a time to re-evaluate my plan and assess changes that will improve my portfolio performance. I also think of it as a good time to pick up stock in some of the big blue chip companies while prices are down. As an example, I sold my AT&T stock in early spring of last year, while I had a nice price gain and bought the company's stock back in late summer when the prices were down. From the profit I made in the spring, I was able to purchase more shares of this great company when I bought back in at the lower prices. It has performed quite well since.
As for improving performance of my portfolio, this year I have decided to increase the dollar amount of each of my investments and purchase larger blocks of stock each time. While I'm building up cash for stock purchases, the money is parked in my money market account where it earns a nice interest rate. By increasing the size of my investments each time, I will save on brokerage fees. I don't think anyone would consider the amount I pay in brokerage fees to be extreme, but every dollar you save is like earning two, since the saved dollar has already had the taxes taken out. So I'm looking to save every way I can on investment related costs.
The biggest threat to my portfolio this year is high gasoline prices. Not only does this have a negative affect on the economy overall and on the cost of doing business for a lot of the companies I invest in, it drastically reduces the amount of discretionary income I am able to devote to my investment plan. I believe we will see a break in gasoline prices soon. I just don't think it's possible for the average working person in the U.S. to continue paying ever increasing gasoline prices. People have already started to make drastic changes, replacing larger vehicles with smaller ones, riding bikes to work or taking public transportation, in many cases they never would have considered these things before. As for me, I simply don't drive any more than I absolutely have to. All these things add up and when the demand falls, so will gasoline prices. My plan B, you should always have a plan B, is to change jobs and reduce my commute or to relocate closer to my work place. For now I'm cutting back and waiting for a price break. I would much rather be putting this money towards building investment income rather than burning it up in my car.
As for improving performance of my portfolio, this year I have decided to increase the dollar amount of each of my investments and purchase larger blocks of stock each time. While I'm building up cash for stock purchases, the money is parked in my money market account where it earns a nice interest rate. By increasing the size of my investments each time, I will save on brokerage fees. I don't think anyone would consider the amount I pay in brokerage fees to be extreme, but every dollar you save is like earning two, since the saved dollar has already had the taxes taken out. So I'm looking to save every way I can on investment related costs.
The biggest threat to my portfolio this year is high gasoline prices. Not only does this have a negative affect on the economy overall and on the cost of doing business for a lot of the companies I invest in, it drastically reduces the amount of discretionary income I am able to devote to my investment plan. I believe we will see a break in gasoline prices soon. I just don't think it's possible for the average working person in the U.S. to continue paying ever increasing gasoline prices. People have already started to make drastic changes, replacing larger vehicles with smaller ones, riding bikes to work or taking public transportation, in many cases they never would have considered these things before. As for me, I simply don't drive any more than I absolutely have to. All these things add up and when the demand falls, so will gasoline prices. My plan B, you should always have a plan B, is to change jobs and reduce my commute or to relocate closer to my work place. For now I'm cutting back and waiting for a price break. I would much rather be putting this money towards building investment income rather than burning it up in my car.
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