Pocket Money or a Long Term Investment?

Wise approach to personal finances can drastically increase your savings. Since we are living in the age of fast internet and mobile apps, we can upgrade our finance tracking with some of the most advanced financial software, and figure out great ways to earn and save more funds. In this article we will give you a few great tips on how to bring your personal finances in order. 

1. Use personal finance tools

Running personal finances became much less complicated, since the introduction of personal finance tools, like Mint or GnuCash. With these mobile apps people can easily track all of their spendings and earnings.  They connect to bank, credit card, retirement and investment accounts and record all transactions. In addition to that, most of these tools come with bar code readers that can be used for recording cash purchases.

Users have the ability to create monthly, daily and weekly spending plans, and apps give them warnings if they overspend. With all these advanced goal-setting features, users are able to determine exactly where their money goes and to improve their spending, so they can put more money on their savings, 401(k) or investment accounts.

2. Become a freelancer

Digital age allows us to monetize all skills that we have. Anybody can be a freelancer, and more than one third of American workforce is already doing freelance gigs. You can find work on websites like Upwork.com and Fiverr.com, which cover wide selection of niches from graphic design and content creation to different fields of engineering and marketing. Of course not all freelancers use this concept for getting an additional income, there are plenty of people who do this as a main job. This type of engagement can also be very rewarding, but it requires much more effort and expertise.

3. Start saving money for your kid’s school 

One of the biggest problems for young college graduates today is the huge amount of student debt. Student loans are often as high as $100,000; they come with huge interest and can’t be pardoned or written off after declaring personal bankruptcy. Many students are forced to take these loans, because their parents weren’t investing money in their college funds, and due to very high tuition fees and cost of living in student dorms, especially when it comes to private colleges.

High school education is not much different. Parents also spend huge funds for paying children’s high school tuition fees if they decide to send them to private schools. In some cases they even need to take loans, which is fine considering good-quality education children are getting in these private establishments. For all of these reasons parents need to start saving money for their kid’s college and high school, as early as they can. They should use benefits of various 529 plans, when it comes to college education, and when it comes to high school, there are many solutions like school easy pay, that allow parents to pay children’s high school tuition fees and other expenses in up to 12 monthly installments. 

4. Start saving for retirement as earliest as possible

401(k) and other retirement plans offer great benefits. They come with compound interest and tax deduction and most people who start saving early retire with solid six figure amounts, while the few lucky (smart is probably the more suitable word here) ones, retire as millionaires. If you are working for an honest and caring employer, they will definitely offer you up to 6% of match to your 401(k) investments, which is like getting free money.

Unfortunately, not a lot of people recognize all the benefits retirement plans bring. They start saving money when they are well off in their fifties or even sixties. Most of these people wait for retirement with ten or twenty thousand dollars on their account and dependence on welfare checks. With thinking about retirement money, as early as in your twenties or thirties, will leave you enough funds to spend your old age under the sun.

Handling your personal finances in a good way can drastically improve your standard of living and direct more money into your saving and investment accounts. Today many individuals and households use advance ways of financial tracking, which enables them to save more and live their life to the fullest. 

Author: Sonya is a passionate business consultant from Melbourne, Australia. She has a wide range of interests, including online writing, technology trends and marketing in general. However, she likes to share her own experiences in the fields of money saving, considering it's her main focus.

Sonya Watts Business consultant, Blogger at Bizzmark Blog sonya.watts@bizzmarkblog.com || bizzmarkblog.com || Melbourne, Australia https://twitter.com/wattsmsonya https://www.facebook.com/sonya.watts.9406

Preparing for the Unexpected – Start and Build an Emergency Fund NOW!

At the onslaught of something unexpected, who do you turn to? Your parents, your best friend, your relatives or your emergency fund?  The majority of us will choose any of the first three. Here are the ways to start and build your own emergency fund. 

The rule of thumb

Financial experts say that an emergency fund should be enough to cover up to 6 months of expenses for a single person with fixed monthly income. It will take more months for a married man or woman; let's say, 6 to 12 months of coverage. So, calculate your monthly expenses first. If you are spending $1,000 per month, for example, your emergency fund should be $6,000. This amount is enough to cover for all the months' expenses so that you won't have to borrow money from other people.

1) Save at least 5% of your income

Start with saving 5% of your bi-weekly salary (or $100 per salary if you prefer). Just make sure that the amount is reasonable for you and won't jeopardize the necessities. However, this doesn't necessarily mean that you have to stop building your emergency fund once you reached the $6,000 threshold based on the example above. Building the fund is an ongoing process. After all, the situations are called 'unexpected' for a reason.  

2) Open a separate account

Put the emergency fund in the bank. Choose a bank that is accessible anytime, anywhere, so you have something to reach out to if, in case, the financial emergency strikes during nighttime. Consider the ADA (automatic deposit arrangement) of the banks wherein you simply need to link another account to the primary account. Just let the fund sit there and don't touch it unless there is grave reason to do so. 

If you are tempted to withdraw any amount from the fund, ask yourself first – is this an emergency or not? If not, better stay away from the fund. 

3) Channel extra money to the fund

A friend came to you to pay the $100 he borrowed from you from way back when. Put it in your emergency fund. Your team closed a deal and received an incentive from it. Put your share on the fund. One of your time deposits matures. Put the interest on your emergency fund account. Do you have a jar of coins that sits comfortably in the corner of your room? Take it to the bank. 

It is really challenging to build up the fund because of various factors at play such as your current salary, your liabilities and your obligations (also called debts). That's why you need to seize every opportunity to build the fund.

Having an emergency fund is no longer a question of when and why; instead, you should be asking how you can start and build your emergency fund. The steps are easy; the challenge lies in your commitment to building up your emergency fund over time. That takes discipline. You can put it this way, if you don't have an emergency fund, and something happened to you or one of your loved ones, you'd end up financially miserable. You don't want that to happen, right?

Author: Raphael Zamora is a blogger and a freelance writer that blogs for Paramount Direct, one of the best insurance company in the Philippines. He mostly writes about life and accident insurance on his blog.

Best Ways to Save Money During the Holiday Season

Holiday season is a time to have fun and celebrate but sometimes an ache to our pockets. It can also be a time to save BIG. In this post, I round up the 11 Best Ways to Save Money During the Holiday Season.

Here are the 11 Best Ways to Save Money During the Holiday Season:

1. Set a Budget - It is always a wise move to set a budget to minimize overspending and avoid unnecessary purchases. By setting a budget you're in the right track in spending less and saving big.

2. Hit up Black Friday - One of the best ways to save big amount of money is to shop during Black Friday where there are bunch of sale items you can choose from and help you save big. You can start checking The Penny Hoarder Black Friday Deals. 

2. Stay with Friends and Family - If you are planning to travel try to contact your friends or any of your relatives in that area and ask them if you can stay with them so that you can cut the expenses for hotel accommodation or lodging as well as the foods and other stuff.

3. Take Advantage of Sales - Holiday is also a time were big sales are around the corner. You can save up-to 70% off on selected items during holiday season.Just be mindful when it comes to buying during sale because sometimes the item is not really on sale but instead they just put sale banner to attract more buyers.

4. Do Your Research - Before buying a gift or any item make sure that you go through several stores to compare the prices. You also need to go through different online shopping sites to look for the best deal.

5. Share Hotel Rooms - During the Holiday Season, it's already a tradition for most of us to travel and the best way to save money when traveling is to share hotel rooms with your friends or family.

6. Avoid Impulse Purchase - As we know that Holiday Season is the time were big sales are around, it's a challenge to avoid impulse purchases. Create a list of all items you need to buy on the stores and go directly to the items you needed to avoid impulse buying.

7. Be Creative in Giving Gifts - I know that most of us has the sense of creativity why not use it when giving gifts. In gift giving it is more valuable when if it is unique, make from scrap materials and hand made than giving expensive items.

8. Send e-Cards - Instead of giving fancy gifts why not try to send e-Card to your love ones and friends. There are a lot of  FREE e-Cards available online.

9. Make More Money - The best way to save more is to do more. Take advantage of the holiday season to make more money like selling cakes and pastries. 

10. Make the Most of Your Credit Card- As you need to shop and book plane tickets, use your credit card and grab the opportunity to get those rewards and other perks offered by your credit card company.

11. Look for Plane Ticket Sales and Promos - Traveling should not actually be very expensive if you know how to look for the cheapest plane tickets and play the game you will surely save money. Most of the airlines offer big discounts during holiday season for the last seats. Remember to plan and book your flight ahead of time.

Making Money through Writing: Approved Places

Now is a tough time for many folks out there who are out of work. These days there have been thousands or even millions of people competing to land a job. Perhaps you are one of them. You might have the need to make a little extra cash to supplement your income to fend for yourself. People are concerned about variety of things. Some look for income to pay their bills while some may be looking for extra money to be able to buy something they want.

Either you want to make some extra money or earn a full-time job big opportunities await you online especially in the field of writing.

Here’s the news for people like you. Anywhere in the world you might be you can make money out of your passion in writing with the help of the web. Working online is a dream comes true for a number of reasons. One of the reasons why jobseekers haves been abuzz about online job is that you can in work in your pajamas. It means that you can work from home.

You could imagine what advantages working at the comfort of your home could bring to you. Aside from the fact that you can work anywhere you like and you get paid in dollars you’ll also save a lot of money from buying new clothes, meals and transportations and other daily expenses you would have to face when you have to physically go to office. Above all, you get an opportunity to explore various subjects and improve your skills further. You do not just earn, you also learn.

Needless to say there are so many more benefits to working online. If you are thinking about getting writing stint online you might want to consider checking the following sites to find a job. 

Blogging

There is always a high demand for awesome blog pieces but the challenge is in the search for the high-paying writing jobs that’s worth the service. Here are several sites:

1. WOW! Women in Writing
   

   

- The site is an advocate of women empowerment. It is a global magazine that features stories written by women of course. It promotes writing skills enhancement among women.

2. College Humor

- It publishes various forms of content such as video, pictures and articles. It also posts jokes.

3. Top Tenz

- A site that tackles various topics related to Lifestyle, Entertainment, Travel, Science, Technology and so on.

4. WritersWeekly.com

- The site is banking on its long history in freelance writing job offer. It has been going on since 1997. No doubt, it is one of the most reliable sites.

5. Essaymama.com

       - The site offers different writing services like how to write a blog, or as the name of the site suggests essays. It is one of the leading sites in the industry.

       6. Matador

       - It is considered largest publishing site about travel blogs. It generated millions of leads for customers looking travel guides.

       7. The Daily Heckle

        - Where writers can earn money through sharing their opinions. The amount you can possibly earn will be based on the popularity of your posts.

        8. The Dollar Stretcher

         - Deals with posts that provide insights on how to save time and money. You can post your personal point-of-view and get paid for it.

        9. Viator Travel Blog

        - This is where stuff like travel guides, tips on next trip and list of best places around the world are found. As freelancer, you will make reviews about particular tourist spot or make a blog post about making the most of the trip.

         10. TheExpeditioner

       - A travel site. If you are a frequent traveler this is your chance to share your experience and earn money.

Article Writing

1. Elance.com

- Elance.com caters to clients who are either posting a job or those who look for a job. Jobs posted in this site vary widely. Writers are one of the most in-demand at Elance.

2. Upwork.com

- Formerly Odesk.com, Upwork has calibrated its services. If you are looking for writing jobs, this is the right place to be. It is where you find various writing services offer. You can write for different and prominent companies. Common jobs posted include Article writing, book writing, SEO writing, Web Content, etc.

3. Freelance.com

- Just like Elance and Upwork, Freelance.com publishes job offers for those who want to work as freelancers.

4. Reverb Press

- Publishes articles about Politics, Justice, News, and Business among others. The content of the site is contributed by freelancers around the world.

       5. BootsnAll

    - Inspirational contents to get you motivated in daily basis are found in this site.

       6. Scary Mommy

              - A parenting website that publishes resources to help struggling parents.

        7. The Sun Magazine

    - A magazine that explores human interest stories.

        8. Grasslimb

    - A literary journal that seeks poetry and prose work of arts.

        9. Vela Magazine

    - Publishes women-written nonfiction.

       10. Make Tech Easier

    - Home for computer-related resources. It publishes how-to articles and tips on how to fix various computer glitches.

Web Content

1. InstantShift

- An online community for web developers and designers. Freelancers are very welcome to add up to the pool of writers for the site. You will write articles about website development for clients all over the world.

2. SpyreStudios

- An online magazine that deals with website development. If you are a tech-savvy person this is your chance to produce high-quality articles about websites.

3. Smashing Magazine

- Millions of web designers and developers visit the site. They look for resources that can enhance their practices. If you love writing and if you have prior knowledge about websites then you can become a good resource for them.

4. Crazyleaf Design

- The company offers web design and programming services. It is a website builder firm. As a writer what you will do is to produce articles that describe the nature of the business and what it can offer to its customers.

5. Photoshop Tutorials

- For people who have knowledge about Photoshop, this is a great opportunity to share your knowledge and get paid in return.

6. AppStorm

- In a world of apps, those who have the technical know-how are in great demand in the market. This site provides articles related to apps and if you have the writing skills then you’re into this multi-billion industry.

7. A List Apart

-It focuses on best web practices and web standards.

8. Site Point

- It provides web-related contents.

9. UX Booth

- In pursuit of making web experience better, the site hires freelance writers who have sufficient skills to make quality work.

10. Godaddy.com

- Where business owners create website for their business. For your part as freelance writer, you will make articles about the services of the site.

The World Wide Web is going to exist for the rest of your life so you might as well make the best out of it. This is the perfect time to start a writing business while enjoying the comfort of your home. Making online writing your living is perhaps one of the most precious benefits of Internet.

What are you waiting for? Show to the world what you’ve got and become the best writer that you can be.

Author: Kenneth Waldman is a freelance writer and content creator. He draws his inspiration out of the traveling. Get in touch with him on Linkedin.

5 Easy Ways to Pay Off Debt Fast

Do you have debt? How big is your debt? Sometimes, we can't avoid having debt due to our unlimited needs.Having a debt is so stressful, there are times that you can't even sleep well, thinking how to pay off your debt. Everyday there are a lot who are struggling paying off their debts.

To help you pay off your debt fast, I round up the 5 best and easy ways to pay off debt fast?

 

5 Best Ways to Pay Off Debt Fast

1. Create a Budget - In terms of personal finance, creating a budget is one of the fundamental things to learn and consider, since, it has great impact in changing your personal finance game. You should create a realistic budget and stick to it. Don't just create a budget but rather stick to it because a budget is useless if you don't follow it. In paying off debt, you must include to your budget a portion intended for paying off your debt. To pay off debt fast it is advisable to try paying more than the minimum. Paying more than the minimum means faster settlement of debt.

2. Organize Your Debt - After you created the budget, it's time to organize all your debts, if you have multiple debts which most of us have. There are two popular methods you can use, the first one is by listing all your debts from the smallest to the largest regardless of the interest rate. The second method is called laddering. In this method, you list all your debts from the highest interest rate to the debt with the lowest interest rate. Either of the two will work, try if what method will work for you.

3. One Debt at a Time - If you are done organizing all your debts, the next tip to pay off your debt fast is to focus on paying one debt at a time, pay first the first one on your list. It will be a motivation if you already pay off one of your debts and proceed to the next one as you can see the progress. Don't pay the extra cash you have to other debts while you are still working on one debt since it is hard to notice the progress if you spread out the payment of your debts.

4. Cash Out Your Savings Account - I know that this not the best idea but if you cash out your savings then it will be easier and paying off your debt will be fast. The good thing is that the interest to your debt will no longer accumulate which is mostly the cause while many are swimming to debts. If you decided to cash out your savings then choose to pay those with the highest interest rates.

5. Make Extra Cash - The fastest way to payoff your debt is by making extra cash. Look for additional job or any side hustle where you can generate decent amount of money to pay for your debt. Right now, you can even find jobs online or at home so making extra cash will be a lot more easier. Check out this article on how you can make additional income online Ways To Make Money Online Without Any Investment.

Photo Courtey: Pictures of Money

Budgeting Tips for College Students

     Being a college student is a hard time for us since it is a transition stage. The time for more responsibilities specially in terms of handling money. The first thing a college student must practice is the art of proper and effective budgeting. College is really expensive, therefore, every student must take consideration of their budget. 

Budgeting is not an easy subject, it is a long and continuous process. Majority of college students can't handle their money wisely and end up broke. Starting to budget is hard but the harder part is sticking to it. That's why only few college students can save money. Every student should learn budget tips that will work for them.

Every now and then there are a lot of requirements to fulfill and expenses to face. To help you with your budgeting I round up the budgeting tips for college students that works. 

Budgeting Tips for College Students

Here are the 18 budget tips for college students:

1. Make a Plan - Planning is the fundamental structure of everything. If you have a good

plan means you already win half of the game. Make a concrete structure of your strategy or lay out every factor that may affect your goals.

2. Set Goals - Setting goals make it easier to achieve the plans you created. Make sure that your goals motivate you to achieve it successfully. You can set a short term or long term goals. Ask yourself, why are you budgeting? 

3. Track Spending - Tracking spending is always one of the biggest factors in budgeting. You must list down all your spending throughout the day for a month and analyze if where you spend the most. This will serve as your starting point in cutting expenses.

4. Know the Difference Between Wants and Needs - Every individual has their own lists of their wants and needs. At this point you must know how to distinguished needs from wants. Your needs should always be your priority and always remember to live within your means.

5. Avoid Getting Credit Card - There are now numerous college students who own a credit card. As far as you can, try not to get credit card since you still don't have source of income and if so, can you use it wisely?. College students are terrible in handling their finances and spending which only means that it's not yet the right time.

6. Don't Abuse Credit Card -  If you are a credit card holder, then, don't abuse it. Only use it during emergencies and other important matters. Having a credit card during college allows you to build your credit score.

7. Pay with Cash - As much as possible learn how to pay with cash. There is a study that if you want to stick to a budget better bring cash than credit card. You spend more when you use credit card.

8. Avail Student Discounts - Shop to stores that have student discounts. Student discounts typically range from 10%-20%.

9. Take Advantage of Freebies - There are a lot of programs and activities conducted in universities like concerts, movie show, theater, plays etc. Instead of watching movies on cinemas or going to clubs better attend free concerts inside the university.

10.  Buy Used Textbooks - Used textbooks cost almost half or 3/4 of the original price. You can find used textbooks on sites like Craigslist, eBay and Amazon.

11. Rent Textbooks - Another alternative is to rent textbooks instead of buying it. You will only use the book for one term or two so its wiser to just rent it.

12. Buy School Supplies in Bulk - Buying school supplies in bulk will help you with your budget. You can sell some to your classmates or roommates. You don't need to go back to store once in awhile that will cost you more.

14. Make a Grocery List - Prepare a list of all the items you need to buy inside the grocery. This will save you time and can avoid you from impulse purchases.

15. Learn to Cook - Cooking your own foods is less expensive that eating outside. Try learning to cook your breakfast and snacks first before jumping to lunch and dinner. 

16. Set Aside Emergency Funds - As early as today you must learn and set aside portion of your money intended for emergencies. This will help you incur debt when something unexpected happen. 

17. Split Costs with Friends - One way to lessen expenses is share expenses with friends. If you're living alone in an apartment ask your friend to live with you and share the rent.

18. Use Budgeting Apps - There are several budgeting apps available for downloads. These apps will help you stick to your budget and track all your spending.

Photo Courtesy: 401kcalculator.org

7 Personal Finance Books You Should Read in Your 20s

It's important that every now and then we are educating ourselves. Money plays vital role in our every day life and specifically in the future. If you have extra time, why not read personal finance books. You can read while relaxing in a coffee shop or during work or class breaks.

The best time to educate ourselves is when we are still young so that we can use it as inspiration while growing our wealth. There are tons of personal finance books we can read but in this post I round up the top 7 personal finance books you should read in your 20s.

7 Personal Finance Books You Should Read in Your 20s

1. The Millionaire Next Door by Thomas J. Stanley and William D. Dako 

The Millionaire Next Door is a compilation of several millionaires profiles. They research about the comparison between they call Under Accumulators of Wealth and Prodigious Accumulator of Wealth. Some of the man points of the book are spend less than earn, spending habits and investing strategies.

2. I Will Teach You to be Rich by Ramit Sethi 

I Will Teach You to be Rich is a book written intended for the regular people. The target of the book is ages 20s to 30s so it's a perfect read for those young adults. Some of the main topics of the book are credit cards banks, investing, budgeting and automation.

3. If You Can: How Millennials Can Get Rich Slowly by William J. Berstien

If You Can: How Millennials Can Get Rich Slowly is consider as a booklet since compare to other books it is way shorter. It is very rich of useful information made for those in their 20s. A great starter book about investing.

4. The Automatic Millionaire: A Powerful One Step-Plan to Live and Finish Rich by David Bach

The Automatic Millionaire: A Powerful One Step-Plan to Live and Finish Rich is a basic finance book and a must read for those starting their journey to financial freedom. Some of the main points of the book are pay yourself first, put away 10% of your money and save even if you have debt.

5. The Investment Answer by Daniel Goldie and Gordon Murray

The Investment Answer is the #1 New York Times Bestselling book for individual investors. An excellent primer for those that are interested in investing. Some of the points of the book are dealing with brokers, asset allocation, relationship between asset and risk and diversification. 

6. The Money Book for the Young, Fabulous and Broke by Suze Orman

 
The Money Book for the Young, Fabulous and Broke is a book tackling about the money matters of the young generation specifically the recent college graduates. Some of the topics of the book are career moves, save up, retirement rules, investing made easy and love and money.

7. You're So Money by Farnoosh Torabi

You're So Money is one of personal finance books you should read in your 20s. Some of the main topics of the book are no more debt drama, banking in bed and scoring, rich people dress good, cruise control and money is everywhere.

Photo courtesy: quattrostagioni