Early Retirement Planning
Are you already on your 30s? Have you ever thought about early retirement planning? Or, is the idea of life after retirement ever occurs to you? Well, many people find early retirement planning as not a very much important factor to consider in life. They tend to overlook everything that is related to it thinking that they are still young and retirement is still a long way to go. But the truth of the matter is, early retirement planning plays a very critical role in someone’s life. It’s not a good idea to work until you age and die, after all. Aside from that, planning for your early retirement allows you to enjoy everything that life has to offer even after you leave from the work force. It prepares you for everything that will happen in your life after retirement.
However, early retirement planning is not an easy process. As the word “planning” implies, there are a lot of things to be considered, including your savings, your assets, your family, and everything that can be affected. It is basically here where the importance of planning properly comes in.
So, how to plan properly for early retirement?
As far as I know, the most important move to take when thinking about early retirement is to consider first whether you are already financially stable or not. Yes, money greatly counts and this is due to the fact that when you retire, you are leaving one of your best sources for living – your work. So in early retirement planning, it is necessary to think how much you need to save for your life after retirement, how to invest, how much money the retirement plan you want will require, and what changes in terms of financial matters you need to make in your preparation. This is simply about financial planning.
But there is more to early retirement planning than focusing on the financial aspects. Money is not the whole story, after all. In fact, there are some retirees out there who have retired with enough money on their pockets, but they don’t have a better health. They find themselves immobile and incapable of doing something great for their families at all. It is so sad, but true and I find it a result of not having proper early retirement planning.
So when considering retirement, it is important also to look at how you want to live after retirement. Look at your future condition. What are you goals? Do you find yourself enjoying a second career after your early retirement? In what way you’d like to spend your time after retirement? Consider all of these things and make sure that you’ve maintained a healthy lifestyle even after you retire. There are a lot of options for you to do, after all. So make use of your choices and enjoy what life has to offer. Consider this as part of your early retirement planning and you’ll surely obtain a good life after you leave the work force.Continue reading
Personal finance is a scary subject for some people because it conjures up all sorts of personal fears about budgeting, managing investments and buying Vs renting a home. Fear and anxiety are common responses to the topic of personal finance regardless of an individuals level of education or experience in other areas, particularly business. As a result, many people avoid dealing with their personal finance issues until they are almost at crisis point and in serious credit or debt trouble.
But before you can make any decision about your personal finance or take any action regarding your finances, you should obtain a firm understanding of your current financial position. Surprisingly, many people have only a vague idea how much income they actually bring in each month and then how much they actually spend each month and whether there is a positive difference between these amounts that are in you favor.
So the first thing to do is assess you financial situation. Gather together all of the information and documents that will give you a picture of your financial position. Tally your net worth, including real estate, superannuation, monthly income and all other assets. You may be pleasantly surprised by the total. Then, set yourself up a budget by listing all of your expenses. Be completely honest and dont leave anything out. If you cheat on this you will only be cheating yourself. List everything including luxury items such as take out, cosmetics, magazines and movie tickets.
While a budget is absolutely the first step to taking charge of your personal finance, this is by no means the only step you will need to take. You can investigate other services in the marketplace, such as electronic bill pay, investment counseling and seeking out hints and tips for financial health. Electronic bill pay or BPay as it is more commonly known, is particularly useful for people who tend to be disorganized or who procrastinate on keeping their bill paying in order. You can even arrange for your bills to arrive by e-mail rather than through snail mail. You then pay them electronically, by direct withdrawal from your bank account and the transaction gets processed straight away.
Once you have assessed your budget and established a regular and efficient bill paying mechanism, you might feel that you are then brave enough to investigate other areas of personal finance such as investments and stocks and shares. Once again, the Internet can be an invaluable resource, allowing you to thoroughly explore all of the different options and strategies available. You can find all sorts of useful references about investments such as term deposits, managed funds, purchasing stocks and shares and participating in share clubs. You might like to start simple though and merely open a short term savings deposit account so that you can deposit from your pay check each week or month. This way, in no time at all you will begin saving for your next goal whether it be for a car, holiday or some minor surgery.
The application of the principles of finance to an individual's or family unit's monetary decisions is called personal finance. There are many aspects to personal finance, and they include but are not limited to checking and savings accounts, credit cards, consumer loans (car loans, mortgage), market investments, retirement plans, and insurance policies.
A great personal finance tip that can help you save money is to sublet a room in your house that you aren't using. If you have a spare room in your house that you aren't using, you can make a good amount of money by subletting it to someone that's interested.
Do you often spend too much at the grocery store? To save money and calories, make a shopping list and stick to it. Make a weekly menu and write up a list of what you will need for the week. Buy only what you need and resist the temptation to buy impulsively. And if you really want to save, leave the kids at home!
Create a budget – and stick to it. Make a note of your spending habits over the course of a month. Track where every penny goes so you can figure out where you need to cut back. Once your budget is set for the month, if you find you spend less than planned, use the extra money to pay down your debt.
The first step in managing your personal finance is to pay down your debt. Debt carries interest, and the longer you hold on to debt, the more interest you will have to pay. You may also pay penaties if payments are overdue. So to rein in the runaway interests, pay off your debts as soon as possible. When you have done that, then you can start saving.
Keep your credit card receipts and compare them to your credit card bill each month. This allows you to spot any errors or fraudulent purchases before too much time has elapsed. The sooner you deal with problems, the sooner they are corrected and the less likely that they will have a negative impact on your credit score.
Buying and selling stock can be a good way to boost ones personal finance provided they do it in an educated way. If one does not put research behind their stock decisions then there is no guarantee that one will stand to make any profit from their investment that they have made.
Eliminate unnecessary credit cards. You do not need to have a multitude of credit cards open on your credit report. This costs you a lot of money in interest fees and drags down your credit score if you have them all above 20% of the available maximum balance. Write the creditors a letter and pay off the balance.
Personal finance is a way to address the various uses of monetary resources allocated to an individual or family unit. It takes into account the ways in which the monetary resources are obtained, budgeted, saved, or spent over time and also encompasses the various financial risks and possible future events.Continue reading
About Money Market Investing – Is It For You
Money market investing is depositing money with a bank or financial institution that keeps its cash in financial obligations that span a short term. This is done to provide low risk money market investing that yields modest returns. Money market investing is not for the individual who wants to get rich quick. The short-term debt strategies held in money market investing are usually made in highly rated companies and government agencies.
Money market investing yields an average of 2% to %5 per year. You can, theoretically, lose money in a money market investment, but it is highly unlikely. The FDIC does not insure money market investments. You can lose all of your investment if the company holding it goes bankrupt.
Money market investing is beneficial because of its low risk. Many investors hold their money in a money market account when they are not investing in a more aggressive strategy. This gives the money a place to rest where it can still earn moderately, at low risk. Because of this procedure, money market investing represents one of the most widely held securities in finance.
Investors often deposit profits from bonds, stocks, and mutual funds into money market accounts. Dividend and interest proceeds from more aggressive investments are generally deposited directly into money market accounts.
Initially, you must deposit higher sums of money into money market investments than into bank accounts. Money market investing generally requires deposits of at least $100 to $5000 at the onset. The per share price of money market investments is usually one dollar. Proceeds from money market investing are paid in shares. Check writing services are provided as a part of most money market investing.
Money market investing is not one-size-fits all. Money market investing firms put their money in dissimilar securities. Because of this, they pay different interest rates. You can deposit your money into a money market savings account that will yield a low interest rate, but is somewhat higher in interest than a standard bank account, or you can do your money market investing in a mutual fund.
A mutual fund pools the resources of many money market investors. The mutual fund’s manager buys money market securities for the mutual fund.
Money market investing is generally open-ended, which means that the investors can deposit or withdraw monies at any time without risking penalties. Most money market accounts and funds require that a minimum balance be maintained.
Interest rates from money market accounts are usually based on risk. The money market accounts and mutual funds paying the highest interest are, thereby, likely to run the highest financial risk. This is where the money market investor needs to weigh the security of their monies against the promise of return.
Different money market accounts make varying demands on the investor. Some will maintain a higher minimum balance, while others will limit the number of allowable withdrawals, some might do both.
It is important to be aware of the restrictions and obligations placed upon your money market investing before you decide where and how to make your investments.Continue reading