Budgets

Financial Mistakes You Make In Your 20s

June 4, 2018 By Twila Van Leer

Financial Mistakes Made in Your 20s — Trim your expenditures to match the income, being sure to pay yourself with a little savings each pay period

Humans don’t learn all there is to know about personal finances in a day. It’s commonplace for people to learn by their mistakes early in life.

Among the most common financial errors people make in their 20s are:

Ignoring your financial flow.

A first job sometimes is the shocker. You find out after a few paychecks just how much of what you have earned goes into taxes and deductions such as health insurance. If you don’t pay attention, your expectations compared to your realities may get out of sync. Learn from the experts who say, “It’s not what you make, it’s what you keep that counts.” And develop a realistic budget. Trim your expenditures to match the income, being sure to pay yourself with a little savings each pay period.

Letting friends create your financial agenda.

It may be a tough decision, but learn to say no when your friends suggest ways to spend money that you really can’t afford, such as eating out or stopping at the local watering hole for a day’s end refresher. Use public transportation if possible, and brown-bag lunch now and again.

Not realizing that time will cure some financial stresses.

It is likely you will make more in the future, but don’t wait for the future to start serious saving. If your company has a 401(k) option, hop on it. If you can’t take full advantage of the plan to begin with, keep upgrading your contribution as raises come along. It’s the beginning of a trend you should maintain throughout your working career. If you save $200 per month beginning at age 23, with a 6 percent rate of return, you will have $425,000 when you retire at 65. If you wait until you’re 33 to begin, the same savings will only total half that amount.

Work on getting student loans repaid.

Some 2.6 million student loan borrowers in the first quarter of this year opted to pause their monthly payments through forebearance, a government allowance that stops payments, but allows interest to accrue. Make such a move a very last option if you possibly can. Ask your loan servicer first for deferment, but if that can’t be managed, opt for an income-driven repayment plan. If you never get to the point where your payments can be raised, the debt may be forgiven after 20 to 25 years.

Consider more debt for grad school.

Though a higher degree is likely to provide more financial flexibility in the future, additional education should be a carefully planned option. More Americans are getting advanced degrees – about 12 percent of those 25 and older. But it is wise to plan. Go to school part time and take advantage of any tuition assistance your work may provide. Before you sign up for classes, use a student loan calculator to see what debt you will have accumulated in exchange for enhanced earning ability. It may shock you and encourage you to take baby steps toward an advanced degree rather than incur more student debt.

Maximize Your Experience at HomeGoods

May 14, 2018 By Twila Van Leer

HomeGoods is a little bit different. It’s a haven for those who love the thrill of a flea market, but with more panache. A constantly rotating inventory offers something new every few days in the home decor area. To maximize your shopping experience in this outlet, try these tips:

Week days are less hectic. You’ll avoid some of the competition for an unusually desirable item if your aren’t arm-wrestling a dozen other shoppers. Late morning and early afternoon are the times least likely to be congested.

Look clear to the back of a shelf. The store stacks items in rows several deep, so unless you have reached clear to the back of the shelf, you may be missing something that would interest you. Bathroom accessories, kitchen wares and art pieces tend to be in this category.

Keep tabs on HomeGoods stocking by viewing the app now and again. The store doesn’t sell online, but keeps its app up to date showing the latest great finds they are offering. Follow the store closest to you, where the app is updated daily.

Inventory turns over quickly. If you are interested in an item but want to think it over, it may not be there the next time you visit the store. They have a 30-day return policy, so you can try out that sofa pillow with the option of returning it before making a final decision. If you want to purchase something too large to fit in your vehicle, they will hold it for up to a week, giving you time to make arrangements. As you peruse what’s in the store, you may see items with tags marked “sold.” They are likely being held for pickup.

If the item you wanted disappears from your store before you get to it, try the other stores. Not each of them has the exact same choices as another.

If the item you are eyeing has a nick, scrape, stain or other minor damage, ask for a discount.

Red stickers on sale tags signify real deals. But they may have been manhandled in the process. Examine them closely for real damage. It’s possible the merchant is aware of the damage and has already discounted the item as much as he is going to, but it doesn’t hurt to ask.

If you’re afraid your discount purchase at HomeGoods means the item will be out of style soon, don’t be. The store’s buyers look for good deals all year regardless of “season” so they are constantly restocking with goods that may have been out for only a couple of months or so.

Coupons Count!

May 12, 2018 By Twila Van Leer

Coupons that offer reduced prices on food products and other items are worth the effort to find and they are so readily available that there is no excuse for not using them. From standard newspapers to mobile apps, they are just waiting for you to snap them up and save money on your purchases.

You can use digital coupons by printing them out to take on your shopping trip; electronically send them to a store loyalty card, using the card to redeem them at the checkout counter; or you can obtain and redeem them using an app.

Here are seven sources of coupons to get you started:

Coupons.com is probably the largest source for manufacturer’s coupons. You can print them from the website or access and redeem them via the Coupons.com app.

RedPlum.com. This outlet provides manufacturer coupons that you can print or save to a grocery store loyalty card.

SmartSource.com also offers manufacturer coupons that you can print, access via app or redeem through your grocery story loyalty card. SmartSource refers to the latter option as “Direct2Card.”

MamboSprouts.com specializes in printed coupons for natural and healthy products.

Manufacturer websites are provided by the manufacturer direct to customers. Check the websites to determine if your favorite products are represented. Some of the giants that have many products include them in one place. For example, Procter & Gamble has its P&G Everyday program while General Mills provides its coupons via Tablespoon. Kellogg’s websites offers printable coupons after registering.

Many retailers provide coupons through their websites as well. Walgreen’s, for example, passes along manufacturer coupons that can be added to your loyalty card with just the click of a button.

Kroger and Target are among the retailers that offer manufacturer coupons on their mobile apps. You can check your favorite retailers’ websites or search a legitimate app store such as Apple’s App store or Google Play.

See, it’s simple. What are you waiting for? Start saving now the coupon way.

When Your Term Deposit Matures

May 10, 2018 By Twila Van Leer

Term deposit accounts are among the low-maintenance savings options. You deposit the money and then sit back and wait out the specific time you have chosen – six months to five years in general — while the interest builds. The interest tends to be better than in a regular savings account, making term deposit one of the best ways to diversify your long-term investments.

But when the maturity date rolls around, there are several options you might consider to continue the benefit of your term deposit:

Take no action and let the fund roll over automatically. Doing this will maintain the account at the current interest rate. Review interest rates before making the decision. Obviously, if rates are trending downward, you might want to consider another savings scheme.

Cash out the interest and roll over the initial investment. This approach allows you to balance spending and savings and maintains the investment to earn more interest.

Increase or reduce the investment. If you have more money to invest or need some of the term deposit money for some other purpose, make that analysis the guide to what you do as the term deposit matures. Take into consideration your personal circumstances and your long-term investment goals before acting.

Adjust the term. If you went with a longer period for the initial term deposit, but feel that your current financial status might benefit from a shorter term, re-deposit the money at a shorter term, say six months to a year. Some institutions allow you to make additional contributions to the account for the duration of the term. Flexibility is what allows you to make the best savings decisions over time.

Cash out the account. If you had a specific savings goal in mind when you deposited your money in a term account, such as home repairs or a new car, simply cash out the entire amount. Restart a new account when you are ready and have a new objective in mind.

How To Get The Best Airfares

March 21, 2018 By Twila Van Leer

If you fly a lot, you should be routinely getting the best possible fares. So here are seven tips that will help you accomplish that:

• Research. Comparison sites such as Kayak or Google Flights can provide current prices. Use the calendar view to see how prices line up at different times of the year. When you know what the regular prices are, you’ll recognize a deal when you see it.
• Stay updated. Some sites update frequently to advertise flash sales and error fares. Airfare watchdog, Thrifty Traveler and Secret Flying post deals throughout the day and supplement with Twitter and Facebook posts. Many deals are time-sensitive and you have to be flexible to take advantage of them. If a deal seems right for you, don’t wait. Book it immediately.
• Look for shoulder season or off-season flights. The high-demand months are March, April, July, August and December. That’s when fares are highest. They correlate with school breaks and holidays. “Shoulder” months are May, June, October and November. Not only are flights less expensive then, but weather is usually milder and there are fewer crowds to deal with. Off-season months are January, February and September, and you’ll find the lowest fares then.
• Fly on Tuesdays, Wednesdays and Saturdays. Airfares are priced on supply and demand, so these days offer the best fare deals because of low demand. Demand is highest on Mondays, Thursdays and Fridays.
• Book early, but not too early. The best time to find the best rates is 45 to 90 days before you plan to fly. Too early or too late can lock you into a rate that might drop before your planned departure.
• Use the 24-hour cancellation policy. If you see a cheap fare in which you are interested, snap it up. That gives you 24 hours within which to make further considerations. Use the time to check to see if you can find a better deal. You haven’t anything to lose if you decide to cancel if the airline you chose has a 24-hour cancellation policy. Obviously, you need to be aware of that before you make the jump.
• Get back the difference. If you have booked a flight and subsequently see the same flight on a different airline at a lower price, check and see if the original line has a price-matching policy. Some airlines charge a $40 service fee, but you don’t have to use the policy often to recoup that cost.
Booking the best airfares is a complex mix of research, flexibility, decisiveness, timing and luck. Vigilance is the operative word. But the effort can pay off and you can save enough money for even more flights. It’s worth it.