10 Small Money Moves That Can Have a Big Impact

When it comes to money, small changes may work better than big ones. It's because smaller bite-size changes are more likely to grow into new habits that stick. These changes may seem minor, but they can have a major impact. 

Try these 10 small money moves to build habits that can have a major impact on your financial success.

1. Save a Little

Sure, saving a lot would be great. But saving what you can is even better. Maybe that’s Rs. 10 a month into the piggy bank on the kitchen counter, putting an extra Rs. 100 a month into your bank savings account, or beginning a 1 percent contribution to your provident fund. Small moves like this have a big impact over time.

2. Make an Extra Payment

What if you made one extra mortgage payment a year? Or rounded your car payment up to the nearest hundred dollars? A little extra here and there can mean your mortgage is paid off years in advance or your car is paid off months in advance.

One word of caution — with mortgages you may have to make the entire extra payment at once rather than paying a little more each month. If you add a little extra each month the lender may not apply the extra payment to principal. Contact your lender to find out how to pay extra in a way that the excess payment reduces your principal balance.

3. Learn Your Bracket

Taxes matter. If you pay them, you should learn how they work. Start by studying the tax brackets. When you look at the bracket you’ll see that after your taxable income exceeds certain limits, the tax rate goes up. Once you understand this you can see the benefit of contributing higher income amounts to a retirement/provident funds or traditional PPF - the deductible contributions save you money at the higher rate.

4. Switch to an Index Fund

Just because you can’t see the fee being deducted doesn’t mean it doesn’t matter. Mutual funds deduct fees before they give your share of the investment returns. It’s been proven that one of the best ways to find the best performing mutual funds is to switch to lower fee funds — which usually means using an index fund. As your account balances grow this simple change can save you thousands year after year.

5. Project

It would be hard to find your way through a thick forest if there was no trail. It can also be hard to save for retirement without a sense of where your actions will take you. Online retirement calculators project your path - they help you see how your savings will grow over time and what kind of income might be available to you later. If you’ve never run a projection - get online and give it a go.

6. Read One Finance Book

A single book can impart knowledge that will serve you for a lifetime. Even if you don’t like reading, surely you can get through one book? The one I would recommend is Behavior Gap, by Carl Richards. It’s a great book on how our behaviors cause us to unknowingly make dumb decisions with our money.

7. Organize

Financial stuff can feel overwhelming. A simple step you can use to make it more manageable is to get your financial information organized. I was buried in debt at one point in my life. I didn’t want to see how bad it was - but it was only after I forced myself to organize all my credit card statements and tally up the totals that I began to make significant progress toward paying things off.

8. Buy Used

Cars, furniture, clothing… you can almost always find what you want and pay less for it by buying used. If you get in the habit of looking for used items first you can save hundreds, sometimes thousands, every transaction.

9. Cancel Something

Too many of you have some type of recurring charge that is coming out of your bank account or being charged to your credit card — and it is for something you don’t even use. It might be a magazine subscription, annual membership renewal fee, or something you signed up for accidentally. Scour your statements and set aside the time it will take to cancel those things you don’t use.

10. Turn off Financial TV

One client told me that one of the things he really liked about working with a financial advisor was that he didn’t watch financial TV anymore. He found life to be far more relaxing once he tuned that stuff out. Everyone can benefit from turning off the financial stock tip shows. Put a solid long-term plan in place and watch stuff that will make you laugh - not stuff that will only stress you out.

https://www.thebalance.com/small-money-moves-with-big-impact-2388361

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6 Things Millennials Should Do Now That Will Pay Off Big Later On

Getting started as a saver and investor can be a tricky balancing act. You have bills to pay, student loans to settle, and a career to jump start. You have to create a cash cushion for emergencies at the same time that you are being urged to salt away money for a far-off retirement date. Here’s some smart advice on how set your priorities.

Adapted from “101 Ways to Build Wealth,” by Daniel Bortz, Kara Brandeisky, Paul J. Lim, and Taylor Tepper, which originally appeared in the May 2015 issue of MONEY magazine.

1. Tuck away a month of expenses.

Even if this means paying off debt more slowly. The money can cover surprises like car repairs. Once you’ve hit that point, focus on the next goal: six months of expenses, to cover you should you lose a job.  

2. Juggle emergency saving and a provident funds by playing it safe.

Until you have six months’ liquid savings (see No. 1 above), investing isn’t a top priority. But you should put enough into a provident funds i.e. EPF and PPF to get retire peacefully. To partly reconcile the two goals, hold some less risky fare like bonds. With taxes and penalties, cashing out a 401(k) and provident funds is a last resort. But if you’re forced to do it, it’s better to have some safe money.

3. Start first, be an expert later.

Getting going on a 401(k) and provident funds can feel like jumping into the deep end. How much in stock funds? What about bonds? But early on, saving at all matters more than picking the best mix. Say you put away 6% of your pay, with a 3% match, starting at 25. For 10 years you earn a lousy 2%, and then adjust your portfolio so that you earn 6% for the next 30 years. That wobbly first decade will still have added 47% to your total wealth by age 65.

4. Begin your career in a wealth-building city.

Zillow.com says these metros offer job growth above the median 1.3% and homes for less than the typical 2.9 times income:

Dallas: Its many affordable ‘burbs include MONEY’s No. 1 Best Place to Live in 2014, McKinney. Job Growth: 3.3% Housing Cost: 2.5 x income

Atlanta: Home to HQs of Fortune 500 companies including Coca-Cola and the United Parcel Service. Job Growth: 2.4% Housing Cost: 2.7 x income

Indianapolis: Metro boasts another Best Place: walkable, arts-rich Carmel. Job Growth: 2% Housing Cost: 2.4 x income

5. Go ahead, have a latte.

Reducing small expenses can’t hurt, but housing is where you can save real money when you’re young. Rent on a two-bedroom, with a roommate, can be 44% less than for a one-bedroom alone, according to Apartment List data.

6. Spend money to invest in yourself too.

Economists at the Federal Reserve Bank of New York have found that most Americans get their biggest raises during their first decade in the workforce. So lay the groundwork for wage growth early. Don’t be afraid to shell out some money for a business communication class, technology training, or an additional job certification. A $500 class that leads to a promotion and raise could pay off in compounding returns throughout your career, as future raises build on top of your higher base wage. It may literally be the single greatest investment you can make.

http://time.com/money/3817434/saving-tips-advice-millennials/

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Six tips that can help you to save Money

Many individuals asking this question- How should I save money? Many of them started with a lucrative career but after a while they find it difficult to generate enough surplus from their income. Different reasons can be attributed to it- a sudden increase in debt, high lifestyle, insufficient increase in salaries etc. Whatever be the scenario, it's always important that one keeps generating a healthy savings to have enough money to cater to future requirements.

Here are few steps one should take to ensure savings rate do not take a bigger hit:

1. Know what’s coming in and what’s going out

It is necessary that you should know what you are earning. There is a difference between the salary package and the net income in your hand. You need to pay taxes on the income you receive. You have to plan your expenses and future with money that you get after paying taxes on your income. For salaried employees, tax payment is done by employers but you may still have to pay tax when you file your income tax returns. Do a detailed analysis and find out how much money you will really get in your hand. Once you know your right income, it pays to understand your outflows too. If your spending behavior is your main concern then analyze your bills. This will help you to know where you are overspending. It can be your outings or impulsive buying which might be forming a major chunk of these. It may also be high debt which you availed with expectation of increase in salary which never happened. Whatever be the cause find ways to curtail your overspending. If your cash outflows are high due to debt repayment then prepare a strategy to reduce your interest burden so that you can have more savings in your hand.

2. Stick to your budget

Once you know where your money goes and how much money you have, budgeting becomes essential. It helps to keep track of your money matters. It gives a very good picture of what’s happening with your cash flows and why. When you are at initial stages of your career this exercise may look too boring. Even if so, make it a point to prepare a budget. By making a budget you will do well in restraining yourselves from spending on items which you may want but are not needed today. You also get a glimpse of the surplus you are going to generate in next few months- provided you stick to your budget.

3. Separate your savings account

Savings will not be there unless you accumulate some money. Make it a practice of letting your savings go into a specific bank account from where you can invest them. As we say ‘Pay Yourself First’, this savings first need to be in practice to actually save money. You can divide your expense and savings account so that both do not get mixed up and you know clearly what you are saving.

4. How can you earn more?

Many times, your job growth is not decent enough to take care of rising expenses. But changing of job or a career is easier said than done. Identify, if there can be earning opportunities along with your job which can help you to increase your income. Part time teaching, consultancy assignments can become a good source of your extra earnings.

5. Resist impulsive buying

Youngsters fall prey to the advertisements offering big discounts. Impulsive buying is spending money on items which you have not planned to buy. If one goes on spending on things he does not need in a reckless way, there is a high chance of the landing in debts. Better plan what you want to buy and prepare a plan to fund that purchase. This will help you resisting impulsive buying and save for a brighter tomorrow.

6. Avoid credit to satisfy ‘wants’

If you are borrowing to pay for your ‘wants’ and not needs, better to avoid such borrowings. If you avail a personal loan to go for a long vacation overseas, you not only have to repay the money borrowed but also have to pay heavy interest on it, which further reduces possibility of saving money. Instead if you take a short holiday in India, you may end up saving some money.

To make savings a habit, it is necessary to remember below points:

§  Plan for all purchases.

§  Know what you need and what you want. Wants are the things which brings overspending in your finances.

§  While buying things try to negotiate. What is available in a mall may be available at an old shopping market but at a reduced cost. No harm in going there.

§  Fix time wise target for savings and follow it rigorously. Maintain a minimum saving rate of 10%- higher the better.

Source: MoneyControl.com

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6 Awesome Simple Ways to Save Money

Saving money is one of the hardest thing to do especially when you just started also it easy to find tips to learn how to save money. When it comes to real time savings we are not talking about saving in the purse but it will also help to save money real time.

1. Make a Budget

It always great to create your budget of the specific things you need or want to get. Also budget will help track and control your spending to avoid over spending and careless kind of spending. So when you create a budget any month it will move you around the specific amount you spend.

2. Record Your Expenses

It is always good to record your every expenditure along the month as this will also help you track your spending. These means that for your every penny you spend on coffee, food stuffs, gifts and even rent should be recorded and they should all be placed in different category as the total will help know how much you spend on different categories.

3. Plan on Saving Money

Having a percentage to be saved of a particular income every month helps to have a calculated target in the future such as like saying you will save 25-30 percent of your income and fix it.These percentage fixed should not be changed and it will be a step in progress.

4. Decide On Your Priorities

Different people have different priorities when it comes to saving money, so it makes sense to decide which savings goals are most important to you. Part of this process is deciding how long you can wait to save up for a goal and how much you want to put away each month to help you reach it. As you do this for all your goals, order them by priority and set money aside accordingly in your monthly budget. Remember that setting priorities means making choices. If you want to focus on saving for retirement, some other goals might have to take a back seat while you make sure you’re hitting your top targets.

5. Make saving money easier with automatic transfers

Technology has made things much more easier, instead of you going through the stress of going to the bank to withdraw your savings but you can also set up an automatic setting to get your saving transfer to your fixed account, that way it does not know or have to ask you to transfer it does it automatically which is far better so that none of your silly excuse will not catch up with your savings

6. Set Goals

It is always good to set your goals of your savings, which can be your target price or what you want to buy such as a house, a car and so on. This will help you stay focused on what you want and boost your saving spirit to do more saving.

With these few tips you should have an idea on how you can start saving and actually save with it easily. So don’t just sit around, SAVE now!!! Money is very important in building a better tomorrow

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Saving

Savings can help you achieve any financial goal. Whether it’s a comfortable retirement, a down payment for a house, or a new car or stereo, you can get there by setting money aside. And best of all, you can have what you want without getting bogged down in debt.

Yet if you’re like most people, you don’t save as much as you’d like to. Or you don’t save at all. Generally people spend more than they earn. Today’s high energy, home and food prices may make saving seem less possible than ever.

But the time is now. And with a little forethought and effort, saving money is not only possible, it’s easy and practical.

Make Saving a Priority

You’ll be more likely to save money if you make it a priority. Sit down and figure out what you’d like to save money for – retirement, a house, car, college, dream vacation – and how much it will cost. Then make your plan:

• Set a timeline for when you’d like to reach your goal.
• Set a schedule by dividing the total goal amount by the number of weeks, months or pay periods between now and your goal date.
• Be vigilant by treating your savings contribution just like any other must-pay expense, such as rent or groceries.

Find Money to Save

While it may seem difficult sometimes just to make ends meet, chances are you have extra money you didn’t even know about. Here are some ways to find it:

• Keep track of everything you spend for a week. You might be surprised what you’re buying, and what you can do without.
• Make purchases with cash. This can help you stick to a budget and avoid impulse purchases. Simply decide ahead of time how much you want to spend and then set aside that amount in cash before you go shopping.
• Lower your bills. Many creditors will give borrowers a lower interest rate if they’re asked. Also, conserving electricity and gas can make a big difference.
• Rank your nonessential expenses. Keep the ones you like the best and cut the items on the bottom of the list.
• Pack a lunch. Or cook more dinners at home. Eating out at restaurants can eat up a lot of money that could be saved.

Pay Yourself First

You're probably inclined to pay everyone else first – whether it’s your landlord or your grocer or the electric company. But it’s vital to start paying yourself first by saving money. Once you’ve made a contribution to your financial longevity and well-being, then you can divide up your money to cover everything else. Don’t worry. You'll more than likely have plenty left over to cover everything you need.

In fact, most banks make this easier. You can have them automatically transfer funds from your checking account to your savings account, money market, mutual fund and other accounts. You might also check with your employer. Companies will often deduct savings from paychecks if asked.

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