4 Ways to Start Investing in Your 30’s

If you’re in your 30s, now is the time to prioritize investment

Your 30s are a time of transition. While you are no longer in the beginning years of adulthood, retirement is still far away. Investing may seem like less of priority than starting a family, purchasing a home or paying off student loans.

While these are important goals, your 30s are a crucial decade for investing. According to finance writer Paula Pant in an article for The Balance, if you begin saving for retirement at age 30, you will need to save at least 15 percent of your income to retire at age 65.

Whether you’ve already prioritized investing or need a place to begin, these are some options to help you build wealth and save for retirement.

 

  1. Focus on your 401(k)

If your employer offers a 401(k), maxing it out is one of the most important investing steps you can take in your 30s. According to the IRS, the maximum you can contribute in 2018 is $18,500. Your contributions are taken from your paycheck before taxes and are not taxed until you make withdrawals for retirement. “Perhaps best of all, many employers will match your contributions, at least up to a cap,” finance writer Arielle O’Shea notes in a February 2017 article for NerdWallet. “That’s free money you won’t find through other offerings.” If you’re unable to contribute the maximum amount to your 401(k), taking full advantage of your employer’s match is a good place to start.

 

  1. Consider a Roth IRA

If you’ve maxed out your 401(k), or if you don’t have access to one, consider opening a Roth IRA. According to O’Shea, Roth IRA contributions “go in after tax, which means no tax in retirement. Your money also grows tax-free in a Roth IRA.” For 2018, the IRS says you can contribute $5,500 to a Roth IRA unless your income is above $120,000.

 

  1. Other investment accounts

Beyond your 401(k) and Roth IRA contributions, investing in stocks is another avenue to consider. Picking individual stocks is one option, although successfully doing so requires a high level of research and expertise. Another option is an index fund. According to finance writer Dayana Yochim in an August 2017 article for NerdWallet, “When investors buy an index fund, they get a well-rounded selection of many stocks in one package without having to purchase each individually. And because these funds simply hold all the investments in a given index … management fees tend to be low. The result: Higher investment returns for individual investors.”

 

  1. Investment risk

Any investment involves risk. However, O’Shea writes, “Risk is one reason there’s such emphasis on investing when you’re young—young people have a long time horizon before retirement, which means they can worry less about short-term volatility. That allows them to accept risks that should lead to higher average returns over the long term.” For example, stocks offer a higher return on investment, but they are also riskier. Bonds and mutual funds carry less risk but a lower return rate. A more aggressive investment strategy for your 30s might emphasize a heavier allocation of stocks with a smaller percentage of bonds. Then, as you get older, you can slowly shift your investments to focus on safer holdings.

 

While in your 30s, it is important to prioritize investing in retirement, especially if you’re only just getting started. Whether that’s the case or you’re building on what you’ve invested, the additional effort will help put you on the path to peace of mind and a secure retirement.


Help Your Parents with Their Financials

How Can You Help Your Parents Manage Their Finances?

As the years pass responsibilities shift. One day you may wake up and realize you have become the caretaker of the family.  Your parents may no longer have the ability to make reasonable financial decisions and you have to step up to the plate.

Research shows that your ability to make financial decisions peaks at the age of 50 and can rapidly decline after the age of 70. However, it can be rather difficult to convince your parents you  (the person they raised) can teach them a thing or two.

Instead of changing their mind, try to encourage them to consolidate and simplify their finances. How?

Lower the amount of opened accounts

Help them bring their money to one financial institution and one brokerage firm. Then help them reduce the number of credit cards they hold. Ideally, you want them to keep 2 credit cards; one for groceries and one for automatic payments.

 

Pick a Power of Attorney

Having power of attorney allows you to have decision over your parents’ financial matters. It is normal for an elderly parent to neglect your recommendations. They see you as the small person they raised and forget you are a grown adult. A power of attorney will make your life a little easier in case something happens to them. You need to have the time to go over all of their accounts, insurance policies and balance sheets if necessary. It takes great responsibility to have power of attorney. All decisions must benefit your parents and you must be involved in their lives entirely. It is also important to be transparent about the decisions you make with your siblings, parents, and all parties concerned.

 

Analyze their Investment Accounts

You have to make sure only 30 percent of your parents’ money is in stock. The rest of their money should be in corporate and government bonds. The reason behind this statement is that your parents need to have immediate access to their money and do not have the time to make up for any losses.

Lastly, if your parents have plenty of money to care for their needs and want to leave some assets behind to benefit grandkids, consult a money manager. It is better to get seek professional help in order to avoid any future issues.


Improve your small business!

How Can You Keep Your Small Business Competitive?

If you are a small business owner you must prepare for everything. For the not so profitable months of the year and for the months your product has more demand. You must also make smart investments, keep your small business trendy, and always have long-term and short-term goals. Keeping your small business competitive can be a little challenging. The following tips may help you improve your small business strategies.

  1. Know the meaning of the word “but”
    This seems like an odd tip but this small word can be very powerful. For example, if you charge more than your competitors’ chances are you get a few complaints. The short-term solution can be to change your product prices for a period of time, but that doesn’t solve the actual problem. Plus, if customers are going to you for products (even while complaining) it means it is worth buying. With this in mind, this is how the word “but” can help you. First, acknowledge your high prices, then follow with the word “but” and add a valuable statement.“Yes, it is true our prices are high but we use high quality products that can help save money for our customers in the long run.”By doing this, you are sending the message that you care enough about the quality of your product and to help your customers save money. It gives you a valid reason to keep your prices high.
  2. Invest in advertising
    Paying top price for a product or service can be justified by its benefits. People won’t choose your business unless you invest in getting the word out there.
    Invest on a website with good content and SEO strategies. This will serve as social proof for new customers and it will create a digital convenience for your old customers.
  3. Research the market constantly
    Competitive research should be a part of your business planning, and it should continue until your business is stable. The easiest way to do this now is online. Research competitive businesses near you until you can find the differentiating factors and you can promote your business more efficiently.
  4. Offer products and services as needed
    It is okay to offer a variety of products that can do the same thing and value at different prices. You can offer your premium product and have a backup to become more competitive in case it might be too pricey. It is better to retain a customer who has the potential of returning and purchasing more.Owning your business can be rewarding and challenging at the same time. Continue to improve your business and see how successful it can be.


Save on Your Electrical Bill

How Can You Save on Your Electrical Bill?

Living in Florida has its benefits. You never have to shovel mountains of snow; you never pay an individual state income tax and can enjoy the beach all year-round. However, the never-ending summer leads to the excessive use of air conditioning. Therefore, your electric bill keeps climbing.

If you are looking to reduce your electric bill and save money, our tips will certainly help you.

  1. Never leave your electronics turned on.

Most of you know this, but do you actually turn off your devices before leaving the house?

Computers, TV’s, coffee makers, and gaming devices should be turned off when they aren’t being used. That means you don’t have to keep them on when you are in the house showering, cleaning or sleeping either.

 

  1. Spend time outside.

The more you are outside, the less you will need to use your AC. We are not saying to spend money going out (that will defeat the purpose). You can go to a park with your pets, walk around the beach, or visit a friend. If you aren’t home you don’t need to have the AC on. If you have pets you have an excuse to take them out, and leave it on for them while you are at work.

 

  1. Invest in a smart thermostat

A sophisticated thermostat can help you adjust the temperature of your home according to your individual routines. You can divide your day into blocks and set desire temperatures for each. For example you can adjust your settings to a higher temperature while you’re at work and lower them when you return from work automatically. A smart thermostat can trim cooling cost by 15%.

 

  1. Insulate hot water pipes

According to the Department of Energy, insulating your hot water pipes can reduce your electricity or gas bill $12 annually. Insulating your hot water pipes is inexpensive­­­­­­– especially if you have duct tape at home.

 

Stop overspending in your electrical bill change your habits and start saving money.

 

 


Declutter and Save!

How Can Decluttering Save You Money?

What is the current state of your closet? Is it stuffed to the brim with clothes, shoes, suitcases, cleaning supplies, your high school yearbook textbook, etc., or can you do cartwheels in there? Is every horizontal surface covered in piles and piles of stuff or is almost like a guest room?

A clutter-filled house can lead to increased entertainment costs; you don’t want your friends to see the mess (or are sick of seeing it yourself), so you go out. Duplication is another way that clutter can cost you. Have you ever spent money on something you already had because you had no idea where it was, and did not want to spend hours looking for it?

If the thought of actually having to go through all your stuff makes you sweat, don’t worry. Here are some tips that can help make the decluttering process as painless as possible:

Do a little at a time: You are less likely to get discouraged and give up if you set a series of small goals spread out over time instead of trying to clean up the whole house at once.

Take a picture of sentimental items: Do you have some items that you never use but can’t throw out because of their sentimental value (such as the doll you bought for your daughter who is now 25)? Taking a picture can make it easier to part with. You will have a reminder even if it’s no longer collecting dust in your closet.

Donate or sell: While some of your items may be worn out and only welcomed by the trash bin, there may be many things you can sell to a consignment or thrift store, or donate to charity. Think of your cleaning as putting money in your pocket or helping others, instead of just a chore.

Use the “one in, one out” rule: After you go through all that effort to get rid of what you don’t need, you probably don’t want the house to revert back to its former messy state a few months from now. A good solution is to get rid of something whenever you purchase something new. You buy a new t-shirt at the mall—when you get home, go into the drawers and get rid of an old one.

By taking the time to declutter, you’ll be cleaning all the way to the bank.

 

 


Have fun on a budget!

4 Ways to Avoid Over Spending During the Weekend

If you are smart with your money, chances are you don’t spend much during the week. However, it all gets turned upside down when the weekend comes. You may feel the urgent need to go out, buy new outfits, and have a few drinks with friends, which leads you to spend all you saved up during the week. This is not terrible unless it becomes a habit. Lucky for you, we have some tips that will allow you to have fun during the weekends without overspending.

  1. Make good use of free recreation.

Living in Florida gives you the advantage of having beautiful outside areas where you can have fun, build memories, and relax. Take the beach for example- if you’re smart all you have to pay for is parking. Bring a cooler with some waters from home, food, and a beach ball and enjoy. If you want some drinks, buy them ahead and add them to the cooler. You will be saving a lot more money buying drinks ahead, than buying them at local hangout spots.

If you aren’t a beach person, you can try the same concept at a pool, or even a park. The outdoors can be really fun and not terribly expensive. Take advantage!

  1. Don’t go shopping out of emotion

We know you probably own a million outfits, so that millionth and one is probably not necessary. Get creative! Change accessories, do something different to your hair, make it work. Unless you absolutely need it, try to avoid it. If you do give in, look for sales and make sure it is something you will wear more than once.

  1. Take your credit cards out of your wallet.

Yes, budget yourself ahead of time by planning out your weekend. The rule of thumb is to spend the money you have in the bank only. Not the imaginary money you can have by buying extra with your cards. That is a big NO.

  1. Have a get together at home

If going out to watch the game is where your money goes, try to invite your friends over and watch the game at home. Everyone can contribute food and drinks and you can have just as much fun.

Remember, you can have fun without breaking the bank.  Use your member discount if you can. Have fun, just do it in a smart way.


Don't let your medical bills be a burden!

4 Ways to Manage Medical Debt

Unfortunately, when you get sick or injured, getting better is often not the only concern. Even if you have health insurance, hefty medical bills can hang over your head like an ominous raincloud. Many people feel that they have no choice but to ignore the bills or eventually file for bankruptcy. However, these are not the only options. There are many ways you can make paying your medical bills more manageable.

1. Check the bills
Often people are so shocked over how much they owe when they first open their bills that they forget to look at them in detail. However, since medical bills are frequently inflated, looking over them carefully could save you money. Maybe you were billed for a four-day stay in the hospital when you only stayed two or charged twice for the same medication. If you see that you were billed in error, contact the medical provider to have the charge removed.

If you have health insurance, it is also a good idea to make sure your insurance company paid for everything covered in your plan. If an insurance company denies a claim, the medical provider will just bill you, even if the treatment is covered under your plan. How easy is it to get an insurance company to pay a denied claim? If it was merely a clerical error, it should be simple. If you are dealing with a stereotypical penny-pinching insurance company trying to wiggle out of a commitment, it could be harder—but not impossible. Most insurance companies allow you to appeal decisions, and if you submit evidence to support why the treatment should be covered, like a letter from your doctor, you may be able to have the denial overturned.

2. Ask for a repayment plan
Even after billing errors are corrected, the amount you owe may still seem frighteningly large. However, there is no need to panic if you cannot pay a bill in full. Most medical providers will allow you to make smaller payments until the bill is paid off and, in many cases, won’t even charge interest. Think about how much you can afford to send each month, and let the medical provider know.

If the medical provider does not accept your proposal, should you not send any money? Not necessarily. Few people will actually refuse money, regardless of how small the amount is. That does not mean you are immune from being sued or having the account be sold to a collection agency, but all you can do is send what you can afford to pay. Not paying your mortgage or other important expenses to get more cash for your medical bills is usually not a good idea.

3. Look for assistance
If you have medical bills from a hospital, you are probably well aware of how high hospital bills can be. Luckily, many hospitals get government funds and donations to cover the bills for patients who cannot pay them themselves. (Other types of medical providers typically do not get such funds but may give you a discount if you describe your hardship.) Talk to your hospital’s billing department or financial counselor about its programs. Remember to find out what the application procedure and qualifications are; often assistance programs are restricted to people who owe above a certain amount, have income below a certain limit, and/or have no medical insurance. Even if you ultimately do not qualify, it does not hurt to ask.

Hospitals are not the only places where you can get financial assistance with your medical debt. Many nonprofits provide the same service. Like with hospitals, nonprofit programs are often restricted to limited income and/or uninsured individuals. To find out what programs are available in your area, contact your local United Way or dial 211 (an information referral service available in most communities). You may also be able to get information from relevant disease support groups.

4. Create a plan for the future 
While your current concern may be the bills you need to pay now, chances are, you will have more medical bills to pay in the future. Getting sick is just a part of life. However, if you start saving today, it will be easier to pay whatever bills come your way tomorrow. While you can put your savings in a savings account, you may also want to make use of one of the tax-advantaged accounts available for medical expenses.

If your employer offers it, one option is to set up a flexible spending account. At the beginning of the enrollment period (which if often, but not always, January 1), you tell you employer how much you want withheld from each paycheck and sent to your account. You typically must pay for the costs out of pocket first and then get reimbursed after submitting a claim form. While the money sent to a flexible spending account is not taxed, there is one drawback: you lose any money that is not spent by the end of the year. Thus, you should not contribute more to a flexible spending account than you reasonably expect to spend.

Another option is a health savings account. Like with a flexible spending account, the money contributed to a health savings account is not taxed. However, you do not lose the money that is left over in the account at the end of the year. So, why would anyone choose a flexible spending account over a health savings account? Health savings accounts are not available to everyone. In order to qualify, you must be enrolled in a high-deductible health plan (a plan with higher deductibles and lower premiums than traditional plans). If you have a traditional plan, you are out of luck.

Medical bills can linger long after an injury or illness has been treated. While the amounts owed can seem unbelievably large, remember, there are many things you can do ease the pain of bill paying.


Save money and refinance.

5 Ways to Cut Your Monthly Expenses

Save money and refinance.
Little changes make a difference!

Ever notice how your monthly expenses always seem to equal whatever salary you’re making, even after you get raises? The phenomenon is called “lifestyle creep” and it can keep you from reaching all kinds of financial goals, from paying down debt, to saving for retirement. One way to get lifestyle creep under control is to have any future raises you get direct deposited into savings – like a 401(k) account through your employer, or an Individual Retirement Account (IRA). But here are five things you can do right now to cut your monthly expenses.

  1. Make a Budget
    The first step toward cutting expenses is to make a budget, so you know exactly where your money is going. Start with major categories, like rent or mortgage, utilities, transportation, meals, clothing, and entertainment. Then break it down even further to ferret out items that are ripe for reducing. Many people, for example, are surprised to learn just how much they pay for pricey lattes and snacks from restaurants and vendors that would cost a fraction of that amount if they were made at home or purchased at a grocery store.
  2. Lower Your Mortgage Payment
    The biggest monthly expense for many people is their home mortgage. If you haven’t examined that loan since you bought your home years ago, it’s quite possible that you could save a lot of money – both now and over the life the loan – if you refinance at a lower interest rate. To know whether refinancing makes sense, you’ll need to add what you’ll spend on closing costs into the calculation of your new monthly payment.
  3. Get an Insurance Checkup
    If you have a car, you absolutely must have car insurance. But it pays to shop around periodically to make sure you’re getting the best deal. If you have a decent emergency fund on hand in case of an accident, one way to lower your premiums is to increase your deductible. Also be sure to examine your policy for “extras” you may not need. For example, you could be paying for roadside assistance both through your insurance policy and through AAA.
  4. Examine Your Auto-Payments
    Putting your regular bills on auto-payment can be a really smart way to protect your credit rating by ensuring you’re never late with a payment. However, if auto-pay causes you to keep paying for items or services you don’t really need or use, it’s no bargain. A few common culprits include unused gym memberships, subscriptions to magazines that aren’t read, and cable or satellite TV plans that include loads of premium channels that are rarely watched.
  5. Cut the Cord
    If you’ve already ditched your land line, good for you! If not, doing so is one of the quickest and most pain-free ways to trim your expenses. Most all of us have our cell phones with us all the time anyway, and if you really like the feel of a traditional phone in your hand, a VOIP (Voice Over Internet Protocol) plan that provides phone service over the Internet is a lot cheaper than traditional land line service.


Is leasing right for you?

Read This Before you Break Your Lease!

Many tenants find themselves in a situation where they need to or want to move out before the end of the lease term. If you are breaking your lease, it is important to keep in mind that a lease is a legally-binding document, and if the remaining months’ rent is not paid, the landlord can sue you and obtain a judgment (which may allow them to garnish your wages or take other collection actions against you). Losing your job, taking a new job in another location, not liking the place, or buying a house does not allow you to be released you from your lease. However, there are a few exceptional circumstances in which you may be able to have your lease invalidated, including:

 

  • The landlord lied about a fact that he or she knew played an important part in your decision to rent the unit, and the fact could not be easily verified by you in advance.
  • The landlord failed to keep the unit in safe and habitable condition.
  • You are a victim of domestic violence or stalking.
  • You or your spouse is in the military and received orders to move or deploy.

 

Rental laws vary by state, so it is a good idea to do research or speak to a lawyer or tenant organization about whether your situation allows you to invalidate the lease before you move out.

 

While breaking your lease does not release you from the responsibility to pay rent, you may not actually have to pay it all. You should talk with your landlord as soon as you know you will be moving out. In most states, the landlord is obligated to look for a new renter for the unit. You can also look for a new tenant yourself. Generally, the landlord cannot refuse to rent the unit to a qualified applicant and still hold you responsible for the rent. Once a new renter is found and starts paying rent, you are off the hook—with a caveat. If the landlord can only rent the unit for less than what you were paying, you can be held responsible for the difference in rent until the lease expires. For example, if you were paying $1,100 a month and broke the lease with 6 months left, and the landlord could only rent the unit for $1,000 a month, the landlord is entitled to $600 from you.

 

Some landlords also allow tenants to be let out of the lease by paying a fee. Landlords are generally only allowed to be compensated for what their actual loss is, so they cannot demand that you pay an arbitrarily-determined fee. However, if your apartment is located in a soft rental market and it is unlikely that a new tenant will be found soon, it may be to your advantage to pay the fee if it is offered. You may want consult with a lawyer or tenant organization before signing a lease-breaking agreement and paying the fee.

 

If you choose to break your lease, you will likely have some financial loss. However, careful planning on your part can help you keep the loss to a minimum.


Establish good credit

5 Ways to Establish Credit

Establish good credit
Establish good credit today!

When it comes to getting a credit card, qualifying is actually one of the easiest parts of the process. Establishing a positive credit record, however, requires dedication and patience.

Whether you are new to credit or are trying to “clean up” past mistakes to reestablish a favorable record, you may encounter a frustrating paradox: you must have and use credit to create a credit history, yet many financial institutions are reluctant to extend credit to someone without an established record. But don’t despair – there are several good remedies for both situations.

A Secured Card
An excellent start is a secured credit card. You are granted a credit line based on a percentage of a cash deposit you make to your financial institution. Because deposits are usually low, so too will be your credit limit. Application and annual fees for secured cards are often higher then those associated with unsecured credit cards.

The Retailer’s Card
Consider a local retailer’s credit card. Their criteria is often less rigorous than larger credit issuers. Be sure they subscribe to the major credit reporting agencies though – if not, you won’t be establishing a credit history.

A Co-Signer
Another option is having someone with a positive credit record co-sign an account for you. This requires a great deal of trust on the part of the co-signer – if you fail to pay, he or she is responsible. You could end up jeopardizing a relationship as well as a credit record.

Review Your Credit Report
Finally, if you have damaged credit, you might need to rectify the past as you’re building your future. Paying old debts and correcting errors on your credit report as soon as possible might be the way to go.

Pay off Your Debts
Once you have a credit line, establish a good history by using it responsibly. Keep balances low, always pay on time, don’t pursue unnecessary credit, and stick with a few good credit instruments of various types.