money saving tips

money saving tips

Saving For College
Save early and often: Start saving the day the baby is born, if not
sooner, and save as often as you can. The sooner you start, the more
you can take advantage of compounding interest and watching your
savings grow. It will also help you get into the habit of saving
regularly.


Establish a goal: If you specify a savings objective, you’ll be able to
measure your progress toward that goal.
Increase the amount you save each year: Increase the total amount you
save each year by at least 5 percent. So if you save $100 a month this
year, you should save at least $105 a month next year. This will help
your savings keep up with the college tuition inflation rate. Remember
to increase the amount of money you save, every time you recieve a pay
increase.


For The Young Adult:
Purchase a water filter instead of bottled water — and cook your own
food, you’ll spend less on ingredients than you would on eating out
daily or weekly.

Lower incidental bills: if you’ve been with your cable or satellite provider for at least a year, you can request a lower rate.


Economical dating: Taking your beloved to a museum and a variety of
venues that offer free live music is not only a good way to save money,
it makes you seem suave and sophisticated.

For First-Time Homebuyers:
Aim for a 20 percent down payment: What’s the risk of putting down too
little? If the home falls in value and you sell at a loss, you’ll owe
more to the lender than you’ll receive from the buyer. You’ll also need
extra money set aside on top of the down payment for closing costs,
such as title insurance and mortgage fees.

Separate: Set up a separate account for your down-payment
funds, so these dollars aren’t intermingled with other savings, and so
you can keep track of how much you save. This should probably be a
taxable account at a bank or brokerage firm.

Set a timeline: Your timeline for purchasing a home determines how best
to invest your down-payment money. Those planning to buy in three years
or less should put these funds in conservative investments such as
short-term certificates of deposit or short-term bond mutual funds to
shield themselves from potential market downturns. – todd williams

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