I’d like to be the first one to give you a gift this Christmas season: My free, downloadable Christmas Present Planner. If you really want to save money this season, the first thing you need to do is get organized so you don’t over-spend. This handy Microsoft Excel file will allow you to keep track of both your initial budget and the amount you actually spent on each individual. Overall, it will help you keep your spending on track and make sure that everyone on your list is well taken care of. … [Read more...] about Download My Free Christmas Present Planner!
Personal Finance
Buying Christmas Presents For Free Using My Rewards Programs
When I was younger, my bank had this thing called a “Christmas Club” program. The way it worked was I’d sign up for a set amount of money I wanted to save for Christmas ($100 - yeah, I know big spender - I was about 10 years old) and then I’d receive a small book with 50 payment slips ($2 each). Each week throughout the year, I’d pay off each of those slips. As part of the program, the bank would pay the last one. Although this wasn't a groundbreaking investment (about a 2% return), it did teach me a little something about saving and preparing for Christmas: • Christmas is a lot easier when you save little by little throughout the year • Getting free money for the act of saving isn’t bad either Now that I’m all grown up, I have a little … [Read more...] about Buying Christmas Presents For Free Using My Rewards Programs
Will Your Retirement Cost $2 Million?
How much money will you need to save in retirement? Think you’ll need $2 million? You may be surprised, but according to a recent article on MSN, experts believe that $2M should be the new goal for most Gen Y’ers. In fact, they also suggest that Gen X’ers strive for a $2M nest egg as well. Although I appreciate articles of this nature and understand that their intended purpose is to reach a broad general interest audience, there were a few things that raised a red flag: 1) $2M may be way more than some people will ever need. 2) The $2M goal is based on working until you reach age 70. Who wants to do that? What if your timeline is compressed so that you can retire earlier? Using conventional wisdom, a $2M portfolio with a 4% withdrawal … [Read more...] about Will Your Retirement Cost $2 Million?
Adventures in Refinancing, Chapter 3
Since my last post on refinancing, I have visited a great deal of posts and articles on the web and have learned that we have something is common: • Many of us have the same problem with trying to get a refinance. That problem is: 1) We are underwater (our house is worth less than what we still owe). In mortgage terms, our loan-to-value (LTV) ratio is above 100%. 2) We faithfully make our payments on time 3) We have no other home equity or liens against our property 4) We have private mortgage insurance (PMI) Number 4 is the real kicker. In most instances, this is where all the government help you see advertised all over hits a brick wall. … [Read more...] about Adventures in Refinancing, Chapter 3
Which is Better – Paying Off Your Mortgage or Investing the Money? – Part 2
In Part 1, we introduced the question of whether it is better to payoff your mortgage or simply invest the money. We also walked through an example that demonstrates how your mortgage is really the same thing as an investment where you earn the same rate of return as your mortgage interest rate. Back to the Question: So after the previous example, you’d probably think that that was the answer and we’re all done. Unfortunately, it’s not that simple. There are two main variables that change the circumstances: … [Read more...] about Which is Better – Paying Off Your Mortgage or Investing the Money? – Part 2
Which is Better – Paying Off Your Mortgage or Investing the Money? – Part 1
It’s one of the most widely asked, light-hearted questions among people: • “If you won the lottery, what would you do with the money?” There’s the usual responses like buying a fancy new car, going on a shopping-spree, taking an exotic vacation, that thing you always wanted, etc. But after all you filter out all the fun responses, most people come to two very sensible responses: • “I’d use the money to payoff my house” • “I’d invest the money” Although not all of us will be winning the lottery anytime soon, we make much smaller-scale decisions along these lines all the time. For example: • Every paycheck when your money goes into a 401(k), have you ever considered if putting it towards your house was the better option? • Have you … [Read more...] about Which is Better – Paying Off Your Mortgage or Investing the Money? – Part 1
Your Bills Are Negotiable
One of the many things my job has taught me is that the price of everything is negotiable. It’s basic supply and demand. If you don’t give someone the price they want, they’ll go find it somewhere else. The bottom line is whether or not they want to make a sale and keep you as a customer. That’s the little story I tell myself about every six months. What happens every six months? My TV service goes from the promotional price back to the normal price. And when it does, without hesitation, I call the cable company and politely ask “Is there anything you can do for me?” I don’t yell. I don’t stomp my feet. I simply ask the question fully understanding that the worst thing they could tell me is “no”. But they usually don’t … because the … [Read more...] about Your Bills Are Negotiable
Retirement Contribution Limits Increased in 2012
On Friday, the Internal Revenue Service (IRS) announced there will be an increase to the contribution levels for 401(k)’s, 403(b)’s, and the other similar government sponsored retirement plans. The changes will be as follows: • You can now contribute up to $17,000 (up from $16,500 this year) to eligible plans starting in 2012 • Catch-up contribution limits for the same eligible plans will still remain $5,500 for anyone age 50 and over • No change to the IRA (Traditional, Roth) contribution limits - $5,000 annually and $6,000 for anyone age 50 and older. • Roth IRA income limits will be increased by $3,000 to between $110,000 and $125,000 for singles / heads of household and by $4,000 for $173,000 to $183,000 for married couples filing … [Read more...] about Retirement Contribution Limits Increased in 2012
