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Posts Tagged ‘Savings’

Then, quoting some of the factors that can influence the savings:

The amount of revenue: the incentive is greater savings for consumers who believe that their future income will decrease in relation to the current. This is like planning of consumption and revenue.

The future income security: If you have a concept of uncertain future income, the need to save is greater than when those future earnings are more secure.

Forecasting the future: When given less value to future needs than at present, what it means to live more in the moment and not worry about the future, that carries a lower savings.

The future price developments: If it is expected that property prices will be higher in the future, the trend in savings will be lower than if you expect stable prices or prices lower.

The interest rate: If the interest earned from savings are high, probably more likely to save if it is low.

Salary: depending on the wages paid, there is the possibility of saving or not. If a person receives a monthly salary rather high, most likely save not spend the amount of their wages. The higher the salary, there is more chance of saving.

Inflation: This is another very important aspect, and that the higher inflation, lower saving.

In all dimensions of life there is always a set of rules, tricks, and more. that help us deal with the task ahead. In finance we have a lot of these but I think there are some that are amazingly simple to be tools for your planning. Here are some of these rules:

Investments: The Rule of 72
This rule is very interesting, will tell you approximately how long you take to double your investment. For example, if you invested $ 1,000 8% annual interest, will take 9 years (8 / 72) to make your money grow. If you stopped these win the $ 1,000 fee for 27 years, you’d have $ 8,000 in the bank.

Therefore it is said that the best friend of money is the time that this investment, and therefore invest drinking the earliest you can for your retirement.

Savings: The rule of 10
You should always save at least 10% of your income. This rule is not only essential for you to save, but because it attacks many basic principles of a healthy financial life. If you save constantly are learning to live on a budget, you are saving for an emergency, you are saving to invest and are creating financial security that will help you progress. This is so important that even the Bible speaks of tithing.

Risks: Do not invest what you are not willing to lose.
Investments that you are at risk of losing value. Unlike a deposit account (savings, certificate of deposit), they can lose value, especially when the market is so volatile at this time. In the long run (at least historically) investments increase, but if you have money invested that you need quickly, you may not give the time necessary to recover the losses.

Do not invest money that is intended for your needs, your emergency fund or your monthly expenses that might get lost and fall into a financial crisis. Only you can invest the capital to let it grow long or if they do not lose your financial imbalance.

Mortgage: The Rule of 33
You should not have a mortgage / rent is more than a third of your monthly income. This will help you identify what you can pay monthly when you are buying a home, or when you’re considering relocating to another apartment. We tend to forget other necessary expenses (food, transportation, utilities) and sometimes we commit to pay a lot more than you really should.

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If you are expecting a new addition to your family these are things that most parents have to take into consideration:

Health Insurance
Make sure you know how she is that your health insurance covers the delivery and whether charge you more if natural birth or cease. Also note that if the baby out with complications (God forbid) you should have the necessary coverage to ensure their welfare. If such cases do not have insurance, research with community organizations if there is any help in your area.

Pay most of your debts
Try to pay as many debts as possible before the baby is born. Raising a child is very expensive, and only gets harder so you can pay your obligations. Also remember that you’ll have to start saving for the education of the baby and their future costs.

Life and disability insurance
One of the most important things in which you think is a little person who depends on you to live and sustain themselves. If someday could provide missing or you have to make sure that guy will be in the best positions. Visit my article on life insurance for more information or an insurance agent near your home.

Prepare to have less income
One of the hardest things that happens when a couple have a baby is that for a while household income will be reduced drastically. It is important to be able to budget to take account of this, or at least able to save enough money during the pregnancy to be sure that the time you or your partner stop working not reach a financial crisis. This is one more reason why an emergency fund is so important.

Very useful tips that should keep in mind when you go grocery shopping:

Before going to the Supermarket
* Plan your menu and write your shopping list in advance. This will help you buy only what you need, and prevent food from spoiling.
Eat something before you go shopping. If you shop hungry, will be tempted to buy things they do not need.

In the Supermarket
* Buy fruits and vegetables in season. The markets for farm products (Farmers Market) is a great place to find good prices.
* Buy canned or frozen fruit supply. Make sure they are packed in water or 100% juice without added sugar.
* Buy canned or frozen vegetables offer. Canned vegetables before cooking, rinse with water to reduce salt content.
* Try store brands are as good as commercial, and significantly cheaper.
* Look for coupons and announcements of deals in the supermarket and get the discount card to customers.
* Spend your food budget wisely. For the same price of a big bag of chips and a box of sweet biscuits, you can buy a lot of apples, bananas, carrots, potatoes, peppers and other healthier foods.
* Join a local food cooperative and share the cost and shopping with a friend.
* Join a community garden and learn to grow their own vegetables.

Upon arriving home
* When your budget and time permit, cook “wholesale.” Cook a large amount of soup, chili or spaghetti sauce, divide it into family-sized portions, label and freeze to eat later that month.
* Take the leftovers to reduce preparation time and save money. For example, to prepare a grilled dish, serve half and freeze the rest. Then use it with vegetables to make a quick soup, tortillas, a dish fried or hash.