Showing posts with label Money. Show all posts
Showing posts with label Money. Show all posts

Saturday, February 24, 2018

ADOPTING THE BABY STEPS: SAVING FOR COLLEGE

courtesy of Flickr
When everything is settled in with your emergency and contingency funds, instead of jumping to your retirement fund, complete all responsibilities and work with your children's college fund first. It would be good to think about your retirement fund but it would still be a number of years away while children are growing quickly. The moment you started a family, it would only take around 18 years before you got a kid to send to college. While, hopefully, it would still be double those number of years until retirement.

With the lesser time frame for the children, it would be better to focus on a year or two solely on saving for their college fund. Allot two years focus on each child. So if you plan or already have 2 or more children, double the number and that would give you the total number of years you are supposed to save for college funding solely. The two years may not even be enough for an employee to save for each child, but this is just the focus or saving solely for one baby step. The succeeding years, you might want to divide the savings among your retirement fund and the children's college fund. 


Baby steps 4 and 5 together. 

This is a new scheme which combines saving for both college and retirement fund. So give two years for each child and save their college fund. After the two years, divide your savings to college fund and your retirement fund. Paying off your retirement fund earlier ill be requiring you to give lower payments. The installments paid on the retirement fund will be earning interest which will be possible to suffice the inflation on your senior years.


How to plan on the first two years for college funding?


It is not just checking on the tuition fees of each university, but compute all the expenses that your children will be asking from you.


  • Start with learning the fees of universities in your local and also in another city. You can decide on which to start with. After all, you are going to save while your children are still young, thus, there is no point of asking a 9-year old on which university he would like to go to in college. To be at a safer side, check on the university out of your town which offers the lowest fees and use that as your basis. Another alternative is directly targeting potential universities you would like your child to attend to.
  • Include the expenses for books, school tools and gadgets that your children will be required. Since this is not yet certain for now, you can make an assumption that at least 15% of the school fees would be for projects and tools needed at school.
  • Learn the way of living in that place, check out the people's lifestyle. Does the place offer cheap board and lodging? On the other hand, scout for information about dormitories of schools too.
  • Do not forget to include the inflation of all expenses in your computation. From the school fees to transportation, food and housing, inflation should be computed.

How to save for the college fund?

courtesy of SLU FB

  • You can open yet another account for your children's college fund. This will assure you that you have divided all savings properly. The only drawback is that every pay day or day of deposit, you will be carrying so many accounts.
  • Another thing is to have it included in your contingency fund. Remember that your contingency fund is something you are not to touch unless you are out of job so your college fund will be safe. Another good thing of pooling your fund into this account is the higher interest rate your fund will be earning as you keep bigger lumpsum.

ADOPTING THE BABY STEPS: SAVING 3-6 MONTHS OF EXPENSES

courtesy of Emerald Frog Marketing
After placing an end to the old you, you are now ready to start building up your wealth. Being debt free is such a good start for investments but before working on your dreams, it would be better to make sure that you are secured for the immediate future. There is an immediate security that you need to fund on at times that future problems with your finances arise. This baby step is similar with building your emergency fund. The only difference is these problems can come but not that urgent although devastating. This is the problem of unemployment.

When someone gets laid off or retrenched or basically let go, the first thing that comes to mind is: "How am I gonna live now?" And for the family person ... "How will I support my family?" Unemployment occurs any time to any one despite excellent performance in the company. 


How to plan for the immediate expenses?



courtesy of Career Trend
In the Seven Baby Steps, it was very clear that you should be saving for 3-6 months expenses. However, would saving this much be enough until you can land to another job which will sufficiently support your family? The better thing to do is to check the chances of getting hired with equal or even better pay after computing your expenses. Don't just focus on the expenses, also think about the probability of landing to an equally paying job.

  • Compute for your expenses, even at least the basic, which means wants are still not included. If you are confident that you can save even for those in the want list then there is no stopping you. However, if you would like to move on to the next Baby Step, it would be better to tighten your belt a little "to live like no else soon". 
  • Now that you have an idea on how much you spend, you can start checking the length of time you are supposed to save this amount. There may be countries where it is easy to get back to a job like around 3 to 6 months, but there are also places where competition is high. Although there are some part time jobs to help you make ends meet for the meantime, your target is to get back to the old income level you once had or even better.

How to save for the contingency expense?


When you know how much and how long you are supposed to save, then it is easy to do the math and start the baby step. 
  • Open another bank account to place your contingency fund. It is best to have an account which is not easily accessible such as bank accounts only using passbooks. Banks are surely closed on weekends which will hinder you to have impulse withdrawals on those days you go shop out with the family.
  • If you find it troublesome to fall on queue every time you make a deposit, then you can still carry an account with a card but make sure you can discipline yourself never to touch the card for any other reason than for the unemployment contingency.

ADOPTING THE BABY STEPS: THE EMERGENCY FUND

courtesy of iMoney Singapore


The first thing to consider before working to financial freedom is to secure oneself financially. This is when you would have to prepare for emergencies. Because emergencies would also occur at an untimely, it is best that you are always prepared. 

Before you can tackle your first baby step, you should identify your possible emergencies in order to know just how much emergency fund you should set aside. Make a comprehensive study about your lifestyle and create an inventory of everything you need and those you have. It is clear that "want" is out of the question here. There is no emergencies for things we want.


What are those circumstances that most of us consider as emergency?


courtesy of NearSay
  • Health emergencies. Top priority is to stay alive and well. Anything wrong with our body or to anybody in the family, surely this should be given prompt attention and care immediately.
  • Weather or environment influences. It is the rainy season, so it would be best to keep a big amount of the emergency fund ready just in case a cyclone comes visiting your area. This is true to all other disasters which are no doubt always categorized as emergencies.
  • School fees and projects. A school activity came up, you have to have some fund for this or else your children will feel you have deserted them.
  • Broken appliances. This depends on how important that home device is. If one can still live without it, then don't consider making a fuzz when it broke. For example, the microwave doesn't want to work anymore, think if it is a critical situation for the family, if you can still prepare meals without it, then consider buying a new microwave when truly there would be extra from your budget. Another is the computer, there are some people who work using the laptops or computers, then having this device broken should be considered an emergency or else, there would also be no income without it.
  • Car maintenance. Just like home appliances, setting the emergency fund also depends on people who have cars or not (and if cars are vital for living or not that much).

How to plan for Baby Step 1?


courtesy of Hospitality School
Now that you identified what kind of emergencies you might most likely encounter, you can arrange how much you should keep. 
  • Check out how much hospitalization fees are in your place. Imagine the worst scenario and get the most probable billing for that. There is no need for you to go and interview hospital personnel. You can gather information from people around you who have had hospital emergencies. Knowing the amount they spent, add at least a fraction of that amount just in case bills and services will inflate.
  • For natural disasters, if you are able to complete all your supplies before the season of disasters arrive, then that's absolutely great. The only thing you have to consider for your emergency fund will be emergencies that might happen to your house. For example, flooded basement, cut electricity, no communication or transportation services, etc.
  • Have a talk with your children's adviser to know just how much they might need for projects and other activities besides their tuition fees. Among all the emergency categories, this is the least amount.
  • If your home appliance is a vital part of your living, then keep the purchase amount as part of your emergency fund.
  • Similar with any vital home appliance, if the car is considered a necessity, make sure that you have enough funds to maintain it.

Starting with Baby Step 1


Now that you got an estimate on just how much you should keep for emergencies, it would be easier for you to save (having a specific amount for a goal). 
courtesy of Khalaf & Nguyen, PLLC
  • Allot a certain amount every time you receive your pay in order to quickly complete your emergency fund. Although this depends on how fast you would like to complete Baby step 1, you do not really need to pressure yourself too much yet especially if you still got time on your side. For those parents who are going to have college kids soon, then they should definitely work double time for Baby step 1.
  • Keep your emergency fund somewhere easily accessible. You can open a regular savings account with a card and with the least maintaining balance. Having a card will be more convenient to extract from your emergency fund when the need arises.


Friday, February 23, 2018

JUST HOW EASY ONE MAKES BABY STEPS


courtesy of Money Control

As the popular saying goes "One has to learn how to walk before he could run", this is the same thing when one wanted to reach financial prosperity. Everyone would like to be in that euphoria sometime in the future. It is always the dream of everyone to work hard while young and strong so he could relax and enjoy life after.

Although some people tend to enjoy every bit of their time, (this is, in fact, also good) others do focus on their future. So many are of this case especially if they have more responsibilities in life like parents who have huge duties for the family. Those single can still enjoy more of their time while they are young because of not that much responsibilities.


courtesy of Imgur
The "Seven Baby Steps" is a very popular book written by Dave Ramsey gearing toward financial prosperity and freedom. In this book he discussed ways on which a regular person can still achieve wealthy lifestyle. One has to follow a certain principle in life in order to gain what one dreams of. In it, and also in his videos, he would always reiterate saying "One has to live like no one now, to live like no one else in the future. A simple line pointing out to delayed gratification.

How easy or hard are the steps then? For a person who has a strong will to gain his goals in a given period of time, it would be easy to have the baby steps. There would somehow be a different case for those who have instant self-gratification as one of their beliefs in life. The days of great industrialization had brainwashed people to buy a lot of products. The manufacturing industry came out with so many ideas like, "Eat, drink and be merry for tomorrow you may die." This scheme truly worked for the industry. So many manufacturers became rich! These days, if that same saying is still working on someone else's mind, then that person should pray that he is truly going to die soon or else, he will be broke for the rest of his days.

The principles inside the book start with getting ready for things to happen in the present then moving on to forming your future. Although everything is true, some people might find some baby steps only adoptable in the better worlds. A slight variation would be needed for some places which are still thriving on their potentials to success. In some cases, an alternate list of baby step like the following may be more adoptable.
courtesy of Medium

Baby Step 1: Keep an emergency fund
Baby Step 2: Roll out of debt
Baby Step 3: Fund 3-6 months of expenses
Baby Step 4: Save for your kids' college fund
Baby Step 5: Invest on your home
Baby Step 6: Work out on your retirement plan
Baby Step 7: Build and share your wealth


Thursday, February 22, 2018

ADOPTING THE BABY STEPS: ROLLING OUT OF DEBT

courtesy of Odyssey


Debt is something which hinders a person to financial stability, it hinders a person to think and act clearly according to his needs and wants. Having a debt is like being stuck in a rut, hard to move on. As hard as it sounds, there are just so many instances that a person who is determined not to loan or borrow might still be forced to get acquainted with debt. Life's surprises do not all have a happy ending, there is just so much with life that sometimes people are forced to go into debt with their own dear reasons.

As it looks like normal these days already, most if not all people do have debts. So what would be a better way for us to start our life anew than to clear ourselves of debt.

From Dave Ramsey's "Baby Steps", he has prioritized clearing oneself from debt over the others and right after keeping an emergency fund. According to importance, having an emergency fund is indeed a much needed fall back in case something happens.
courtesy of kahaba.net

The West may apply Dave Ramsey's ideas as they are but for the rest of the world, there should be some minor alterations in order to have with financial freedom. 

As stated in the book, clearing up debts according to the interest rates is a good way to work on your debt(debt snowball). This asks one to arrange his debts according to the interest rates and prioritize paying the one with the highest interest rate. Focusing on a single debt at a time will help you pay a bigger amount which can help you complete your payments faster.

Another case, is to divide your payment among the debts you owe and pay equally. This is somehow a little bit disadvantageous because there would always be debts which are bigger in amount than others. Not paying the minimum in this type of debt will incur more interest.


So how can a regular employee with a minimum wage be able to free himself from debts?


Paying debts need a lot of sacrifice. The first sacrifice will require you to immediately allocate a portion of your salary to the debt you want to finish. This should be done right after you received your pay. The sacrifice will come in budgeting the rest of your 15-day salary throughout the upcoming 15 days.

Ways to budget the remaining fund?

  • Pack your lunch from home. If you are more comfortable with taking lunch out, this might come as real pain. Just think that you only need to pack lunch from home until you can pay all your debts.
  • Walk to work. If you live just a few kilometers from work, wake up early and walk to work. Wear comfortable pair of shoes for this case so you will not feel so terrible upon reaching the office.
  • Follow your budget strictly. This not only concerns about stopping eating out or treating friends and family. This would also mean to remove those unnecessary things from your list. Prioritize on those things you need, list them down, keep some pocket money, and the rest of your money should be paid to your debt.
  • Learn to eat food which does not cost that much. It might be great to eat sumptuous meals everyday, but how about adding some veggie meals a few times in a week. Vegetables are so much cheaper (and even healthier) than meat.

How should you pay your debt?


Most employees feel it is more convenient to pay debts every month-end, the others would like to pay on the 15th and another on the 30th. Both ways will be reasonable as long as one has the determination to stick on one's budget plan.

Those who would like to pay only on the end of the month, it would be a good plan to budget all the expenses on the 15th then try to pay as much as you can on your 30th pay. If there is an excess on the 15th, discipline yourself not to buy anything else and keep it for the 30th's budget.

For those who would like to pay every payday, take note on the dates of paying bills and all those scheduled expenses. On your payday, immediately separate the amount you want to pay to your debt. The remaining amount will be used for the other necessities like food. This does not mean that you give food the least importance. From your remaining amount, budget it on low-cost food which would still meet great nourishment for your family.

Apart from paying the interest, make sure that you follow the amount you decided to pay on the principal.  Bigger amount paid on the principal debt will mean the faster you will be free from your rut.

Learn about the other steps.



Monday, February 5, 2018

HOW TO EARN WHILE PLAYING SKYLOM

I just got addicted into trying my luck with Skylom lately. I find winning is easier in this Baymack game as I got like just 10 numbers to choose from in order to win. Jackpot amount varies by $1 which consumes 1 coin to $2000 using 5 coins. One needs to apply in order to play Skylom. Once registered, you should be able to accumulate coins to use as tokens to be able to choose your numbers. By clicking Get Coins on the upper right corner, short video clips would be shown, a question about the category of the video will pop out right after every video. Clicking on the right choice will be directing you to watch another video.


The time duration per game depends on the prize in the pot. For a smaller prize, the time would be limited to around 2-5 minutes while bigger prizes would take up to 8 minutes. A player can only juggle his numbers once in a game unlike Snuckls and Baymack giving 10 chances for a player to the jackpot prize.




 Each slot is considered in winning which means that the numbers you choose should have the right order as that from which was drawn. So in the case above, there are 4 chances for a player to win as the game is asking for 4 slots. 



The prize in the pot would have to be divided among players. The How to Win tab would explain that 98% of the prize will be given to those players pressing on the right numbers. Although chances are thin for this, having to press just one right number still wins the player a part of the prize.



So although I get a very minimal partial of the prize, I am able to win more often. The amount can be redeemed via bank wire of paypal.


I kept on thinking if there is somewhat a pattern to the winnings in this game, however; until I have discovered it, I am happy with gaining a few more cents to my account as I play. Here is the leaderboard of this week and it is just overwhelming to have them win that much just by playing. Get some time to check out the short videos to gain coins now!






HOW TO EARN WHILE GOOFING AROUND THE INTERNET

Yes, there are so many sites offered over the web which gain income for us. Some give free registration, the others ask for some fee to get you through the procedure. The latter are those which most of the people consider as spam. I have not tried any of those sites asking for fees yet so I will not be able to say if they truly pay of not.

Some offers would truly need your time, and these are good for those who would like to have extra income through the Internet by really working. Such as Upwork, 2 capcha, and so many surveying sites. These sites are legit but then again, time and effort to earn anything from them.

There are also income generating games offered online. All one has to do is to earn the coins to use for the lotto, that is, watch a quick video for one token or coin.

1. Baymack is the main umbrella of this company. Baymack offers lotto prize of $150 daily. Logging in to Baymack is through invite only.  player can send 10 tickets or entries per draw and to be able to have access to a ticket, the player needs to watch 5 videos and guess the correct category per video. It is like use 5 tickets for one entry to a maximum of 10 entries per day. And very similar with how the lotto works, per ticket allows you to choose 7 digits from 42. Winning need not take the order of the numbers.




2. Snuckls has the same system as this is also from Baymack company. Daily draws are given for 10 chances to each player who watched 50 videos in all.

3. Skylom, still under Baymack company uses another draw style. Prizes range from $1 to $2000 and time duration depends on the amount like $2000-prize takes around 8minutes cycle and $1 takes like 2-3minute cycle. And unlike Baymack and Snuckls, Skylom only uses the digits 0 to 9 for the draw but follows the order of how the numbers appeared. This game gives easier chances of winning for those who don't really have luck in playing the lotto game. And same as the other registration to Skylom is through invite only but once a player have been registered to any of these sites, he is free to move around any of these games.



4. Flamzy is the new game produced by Baymack but totally different from all others. This game needs you to watch the movie intently because the questions are not about categories anymore but the video itself. This game will eliminate those players giving wrong answers so one would be able to track if he is to get the jackpot prize. There is only 1 jackpot prize for this game by the way.

 Although the three others, you can do simultaneously as you browse over the web, blogging or just searching and the last one would require a bit of your attention, these games can literally generate you money while goofing around the web.

Monday, January 8, 2018

FRUGAL TIPS THAT CAN SAVE THE DAY

Frugality, at any sense, does not mean tightening one’s belt, and making sacrifices not to do, taste, or experience one or the other. Although at some point it may lead to really having to do some sacrifices, this is where I will be giving you tips to maximize something before throwing it out to the trashcan.

Most people are already well-informed on how they can minimize wasting, and perhaps most of us think that we are doing a great job. However, have you ever thought that maybe you could have something to use for another day before completely agreeing that a product is completely empty.

Let us start with the ones which might be obvious for everyone and check on those which might surprise you.

1. Toothpaste madness. Most people would be using tubes, whatever size they prefer, for their dental care, but are you aware that this product is one of the most wasted. Since there would be more protection using a tube than the sachets, which could not be sealed, everybody might think that they are fully using the toothpaste at the very last drop.

So how do most people maximize toothpaste? While it is up to one’s preference on how to start with it. Probably at the tip or at the middle. Most of us would have the same method of using squeezing out “everything” by pressing the tube flat then pushing more on its sides until all of those left toothpaste come out. While this can do the trick, there is still a part of the tube which most of us ignore. This is the part right before the tube mouth. The plastic used in this part is harder than the rest of the tube primarily because it hols the mouth. Though we can press and squeeze the aluminum-like skin of the tube, we can only push the remaining toothpaste on the mouth and could never really get over the leftover around that area.

So what do we do? Plainly cut the tube wherever you think there would be left toothpaste for a couple of brushing. As frugal as I am, I usually cut toothpaste tubes three times. First at the bottom end where I brush off all the leftovers on the pouch. Next, I would brush off the sides, which were formerly pressed and squeezed, to get totally clean the left paste before I cut it. Then finally, I reach the plastic head and believe me, there would be so much toothpaste that can help you for even more than a day’s brushing.

2. Gooey go go. There are so many products which come in bottles like conditioner, sauce, oil, and the like. Unless these fluids can actually come out of the bottle instantly and altogether, then these products can be squeezed out drop by drop. After using these items normally as you would, at some point when the bottle is almost empty, it would even be harder to squeeze out the goo. Or shall I say, it is hard to use every drop and that leaves some inside the bottle walls and be thrown out. What a waste! What I do when these things are almost empty, I would turn the bottle upside down perhaps a day or an hour before using it. But before doing so, I would make sure that the bottle cap would hold all the left amount of fluid inside. By the time I need to use it, I would just hold the bottle carefully, open the cap, and just use it as a cup for the fluid. A small bottle cap-full of oil may still be of help when frying your lunch and this amount is definitely enough for conditioning your hair.

3. Diluting products. Another way of thoroughly using the contents of bottles is to add water in it. Water washes every single drop of the product in it although there are some fluids which can never be diluted and would have to be worked on like the previous tip. Shampoos, dishwashing liquids and the others can fall under this category. While most people knew and would have been practicing this already, just remember to add a small amount of water in the bottle while rotating it. This way, you will be able to wash off all the fluids on the bottle’s walls.

4. Cut the plastic. Now how about those refills which come in resealable plastics or sachets? Refills usually come in resealable plastics for the purpose of having a temporary container for such products and the same would have to be transferred to bottles once opened. However, transferring them to bottles would just keep some fluids to the walls or sometimes in order to help declutter, most of us prefer to use the refills original container instead. Although it would be easier to take out all the remaining fluid in these kinds of plastics, there is still goo left on the walls and the best way to take it all out to use is to cut the plastic thoroughly. After the plastic container has been totally exposed, it is either you can dilute the fluid with water or you can even wipe the goo right out.

When using free shampoo sachets I get from buying bigger bottles of it, I would always open the whole sachet after removing all the contents. Then brush the plastic on my hair. It always feels better that I have not wasted a drop of free items.

5. Put the kettle back to action. With our advanced times when people feel more convenient using water dispensers for both hot and cold drinks, I do not recommend this for small households. If offices and establishments would have people regularly having a cup of coffee then surely a water dispenser will be good, but for a small household, we don’t have to keep on the power just to keep the hot water boiling. Instead, use a kettle when boiling water then keep it in a thermostat bottle. An efficient bottle can keep the water hot for a day (from morning until afternoon snacks). After it starts to get cold, most of the household will be having dinner and will not be requiring hot water.

How about the old water in the thermostat bottle? Of course, this water has already been a little colder than the newly boiled. I do two things for this. If I will not be using it on anything else, then I reboil this water until it is just right for my coffee, not actually reaching the water’s boiling point anymore. Then if it did not fill the thermostat bottle, that will be the time where I have to boil the next one so that other members of my family would have hot water to use. The other alternative is that, I ask my children to use the old water for washing their faces. It was clean boiled water after all, so instead of heating water from a pot for washing ourselves, we use the old water in the thermostat.

With water scarcity in my city, we cannot afford to use so much water for washing so instead of using those luxurious shower heads in most bathrooms, households do keep a bucket and we limit the use of water for washing.

Have your cooking lined up. I only had come up with this lately that instead of having multiple switching of the stove, how about lining up those things that need to be cooked and have the burner be switched longer. I would usually schedule my cooking so I do not need to waste gas and also exploit my kitchen lighter. So how do I do this? I would have all the scheduled things for cooking lined up. I would first boil water for coffee, then next would be the pot for bathing water. After that then I can place pans or pots for food, and still after everything is done, I would place the pot for dog food. I cook human food leftovers for my pets as an alternate food for their dog food. With my old-fashioned gas range, I keep all my needed utensils on those four burners as if they are in queue. As I always do this when I do not need to rush on things. So while one is getting cooked or boiled, the other three are getting warmed. Then after the first one gets done I place the next without turning off the burner. I just thought that I can keep the burner’s heat and won’t need to have it heated up if I turn off the burner. And keeping the pots together, I believe, when the next pots is placed, the pot is already warmed up which would eliminate the time and gas for the burner to heat up the utensil before it starts heating what is inside.

HYDROLOGY: GROUNDWATER YIELD AND QUALITY

courtesy of Water Education Foundation Aquifers are important sources of fresh water. Two types of aquifers - confined and unconfined...