eggnest.com - retire early

personal finance blog
About Me


Contributors
Archive
2011 (17)
 

Ring in the New Year with a Solid Retirement Savings Plan

If you’re like most people, you probably make New Year’s resolutions. Every year we hear about the trends, such as in this recent article from U.S. News. Improving one’s financial health usually makes the top of the list, and saving for retirement is a key part of any worker’s financial plan.

This year, however, what’s notable about the article’s findings is that, not only are people planning to save money in the New Year, but that their retirement savings goals are nearly double what they resolved to save last year.

Here are some tips for helping you save more this year:

Avoid making broad or vague resolutions. Instead, set goals with measurable outcomes. Suppose your top resolution was to lose 50 pounds in 2012. Okay, well, where to begin? If you set benchmarks or objectives, such as losing five pounds in January by counting calories and working out three times a week, then you can chart your progress with actual numbers. Try to focus on one goal at a time, since a long list of resolutions can overwhelm you and you’ll probably abandon it before February rolls around.

Set up an emergency fund. Most people don’t have one, but they're starting to realize its importance. The Fidelity Investments survey cited in the US News article found that 65% of Americans, versus 50% last year, intend to build such a fund in order to prepare for unforeseen circumstances such as job cuts, health problems, or potential car trouble.

Put away the credit cards. Try to pay off your existing debts, rather than piling up new ones. While it’s so easy to swipe that credit card now, think of the high interest rate you’re likely to be paying. It may sound like tough love, but if you can’t pay for it out of your pocket, then you probably shouldn’t buy it.

Spend less. It sounds simple, but many of us struggle with how to get started. Try tracking your spending for a month and seeing how much goes toward food, utilities and other necessities. Then consider eliminating some non-essential spending, such as entertainment or recreational activities. Small sacrifices can add up to big savings, if you can find creative ways to cut corners.

Invest wisely. Whether it’s contributing more to your 401K plan at work, or opening a college savings fund for your child, consult a professional financial planner to determine the plan that will maximize your savings potential.

Posted by Sophie Worthy 
 

Try turning personal finance into a game

Managing your money and trying to save can feel like a lot of hard work. What if you could turn it into a game instead?

In this article from Get Rich Slowly, editor J.D. Roth writes about the "gamification of personal finance," which simply means using money management techniques based on game design principles:

Think of your favorite games — especially video games. What makes them fun? What makes you want to play again? How can these elements be extracted from game design and used in real life? In this case, for promoting smart personal finance?

An avid gamer himself, at first Roth thought the idea sounded silly. But then he realized he's actually been using game design principles for years to successfully cut spending, boost income, get out of debt, and build wealth.

Making a game out of personal finance can take many forms, and the article lists several examples, such as:

-Make a paper chain that represents your debt, and each time you pay off a certain amount you get to cut a link off the chain.

-Think of dollars as points, so more income means more points and more spending means you lose points.

-Budget a certain amount for groceries each week, and if there's any left over you get to use it for something fun.

-Give yourself a “bonus” for completing a “stage." If you’re trying to pay off debt, each time you eliminate one debt, give yourself some sort of small reward for "leveling up."

-Use envelope budgeting to control your monthly spending.

-Try "extreme couponing" to reduce your grocery and household expenses.

These are just a few suggestions to get you started; you can probably come up with more ideas of your own. Figure out what motivates you, and you can make your own money management feel less like work and more like fun. 

For even more help in winning the personal finance game, contact us.

Posted by Sophie Worthy 
 

Saving for your future by spending less this holiday season

You know that saving for your future is important, but if you're like many people, all discipline tends to go out the window this time of year.

Although several surveys indicate that Americans plan to spend less this holiday season, we all know that planning to spend less doesn't always translate into actually spending less. When you're surrounded by festive holiday decorations and big red sale signs advertising great bargains, it's easy to get caught up in the buying frenzy and spend more than you intended.

If you're serious about saving more and spending less, we found a few helpful articles with tips for navigating the holiday season. Following are some of the highlights of each, plus you can click on the links for even more tips to keep the season full of good cheer without emptying your wallet.

This list from Findbliss.com suggests five ways to eschew materialism and focus on creating a happy, fun, and meaningful holiday season. One idea is to give plants as gifts. Another is to skip gifts altogether and throw a big party instead. 

These holiday saving tips from savvysugar.com include such suggestions as planning a pollyanna or white elephant gift exchange, going in with others on a large gift, and swapping party dresses with a friend.

Finally, if you feel the need to buy gifts for everyone on your list but want to control your spending, check out this review of the top ten sites to find holiday bargains. From Groupon to Craigslist, the list of tried-and-true bargain sites includes something for everyone. All without driving from store to store, fighting the crowds or standing in line.

Whether you make your own gifts or find a killer deal on Woot.com, when it comes to figuring out what to do with all the money you save this hoilday season, contact us. At Eggnest, we can help you plan, save and invest for the future in a way that meets your specific needs.

Posted by Sophie Worthy 
 

Mark Twain Urges You To Save For Your Future

Mark Twain once commented that, “The lack of money is the root of all evil.” Ouch! Twain never pulled any punches. Another interesting entertainer, Woody Allen, came up with this thought, “Money is better than poverty, if only for financial reasons.” Woody’s dry humor takes the sting out of Twain’s evil-factor, but still very much on point when it comes to the practice of saving for your future.

It is no secret today that for many Americans finding extra cash to put away for a rainy day is difficult. But I recently found a simple video on Howcast.com that outlines 10 easy steps that can free-up some money in your daily, monthly and yearly budgets. Warning… Only continue reading and viewing if you have Self-Discipline, Open-Mindedness and a Willingness to Sacrifice a bit.

Step 1 – Stop buy needless paper products. Reach for a cloth towel or rag to clean up that kitchen spill; something that can be washed out and reused. Another great tip, write notes or shopping lists on the back of junk-mail envelopes.

Step 2 – This is huge! Give up bottle water. It is expensive and almost 40% of this H2O comes from our taps anyways. If taste is an issue for you, consider buying a water filter.

Step 3 – Buy less food. 25% of the food we put in our refrigerator and pantries get thrown out eventually. Watch what goes into your trash and start making better decisions at the grocery store.

Step 4 – If you have a cell phone, cut your home phone line. Why pay for two phones when you can negotiate a tidy cell phone plan that covers at home and away.

Step 5 – How much is that gym membership, that you never use, costing you a month? Get rid of the gym. Explore your neighborhood by jogging or jump-roping. If you put your mind to it, there are many opportunities to exercise around your home.

Step 6 – Don’t get in that fast food line. Pack a lunch and make those meals at home.

Step 7 – Say adios to expensive TV cable. Television programming is increasingly moving online. Take a few minutes and figure out how to hook up your computer up to your TV for the optimum viewing experience.

Step 8 – How many pairs of Jeans do you really need? Most Americans own eight pairs and only wear two. The denim you already own is enough.

Step 9 – Pass on new jewelry. The mark up on new jewelry can be 100 to 400 percent, think about buying yourself or others interesting trinkets from pawn shops or estate sales.

Step 10 – Does your body really need all those vitamins and supplements? It might be more cost effective and healthier to consult your doctor about what you should be taking.

By applying these painless steps you can discover new savings that can be put away for better use.  And don’t stop there; contact us, with your stories and ideas regarding new ways to cut expenses at home and in your lives and how these efforts began to free-up your finances.

http://www.howcast.com/videos/237568-How-To-Save-Money-By-Eliminating-10-Things-You-Dont-Need

Posted by Sophie Worthy 
 

The personal finance channel is on

The knock on the door came just as we were dropping the potatoes into the stew.

It was the cable guy, all smiles, clipboard in hand, wanting to sign us up for an upgrade.

My wife looked suspicious.

We'd be able to see all the shows "folks our age" like, the guy told me, a friendly smile to indicate it was OK — it was just us old pals talking here.

My wife gave me that get-him-off-our-porch look, so I did.

But not until he'd given me a few more fliers with key prices and packages circled.

Truth is, it wasn't a bad deal. But was it really worth another $15 to see original episodes of “Starksy & Hutch” that we could catch for free online at sites like YouTube or Hulu? Not too likely.

(And who says we'd want to see them anyway? That was all the cable guy's idea to begin with.)

Nope, when it comes to protecting your personal finance program, steering clear of needless expenses — especially ones that haven’t even occurred to you until a salesman shows up at your door — is a no-brainer.

And while we’re at it, odds are good you can reduce your cable bill even further if you know the right buttons to push. Most TV companies offer a full dial of discounts, hook-up waivers and introductory offers that are surprisingly negotiable, according to the New York Times.

So save that $15 cable-upgrade cost now, and your retirement will arrive a lot sooner and a lot more comfortably than if you blow it on frills.

Besides, if you see all those old “Starsky & Hutch” reruns now, what'll you watch after you retire and have more time for TV?

Eggnest.com, can tell you more. Contact them here.

Posted by Sophie Worthy 
 

Retirement Planning for Everyone

Planning for retirement is difficult for many people. While many people know that it is essential to prepare for retirement, several jobs do not offer retirement plans. 401 K plans are also not always available for all employees. As frustrating as this situation may be, there are ways for people to prepare for retirement without relying on their jobs.

Just search "retirement planning" on the internet and you will find thousands of links on the best way to plan for retirement. It can be tricky and tedious to find one that works best for you. Here are just a couple of tips that may help get you started.

Saving money each month is the best way to ensure you will have enough money. Many websites have retirement calculators to help you determine how much money you need to put away. With the slow economy, many people are finding it more difficult to save money. However, it is imperative you find a way to set aside even a few dollars a month. Set up your bank account to automatically transfer a predesignated amount of money into a savings account.

If you are comfortable doing so, investing in stocks or bonds is also a good way to put away money for later. Find a company that is stable and research the financial history. Make sure they are in good shape and start slow. You can stay with one company as long as you like or sell your stocks and invest in something new. The key is to take it slow. Don't be intimidated. Talk with an advisor if you need to.

Saving for retirement can be done even if your job does not offer a plan. Take control of your future and find a way to save that works best for you.

Posted by Sophie Worthy 
 

Retirement Planning Differences for Men and Women

When it comes to retirement planning, we still live in a world where it's much harder to be a woman than to be a man. Statistically anyway.

According to this story from USNews, women face higher costs with lower retirement income. Women also have more health care costs in retirement, on average. That's in part because women are just living so much longer. Great strides have been made against diseases such as breast cancer. Women live on average 8 percent longer than men.

But women are also more often responsible for giving care to others after they retire, be it a parent or some other aging relative, or sometimes their children or grandchildren.

All of that combines to make retirement much more difficult for women.

That USNews story has a great quote about what women should do about it:

"For themselves and their families, women can do a better job of taking charge, planning for contingencies, gathering information, calculating their income/expenses, and getting serious about retirement strategy," says Kathryn McGrew, research fellow at the Scripps Gerontology Center at Miami University. "Their spouses and partners can do their part by engaging in a joint strategy that serves the interests of both parties with various retirement scenarios. They should give particular consideration to the fact that most women will outlive their spouses."

Knowing exactly how to do that, however, can be difficult, but that's where Eggnest comes in. If the best advice is that women should just take charge, that starts with having better information about yourself. We've built a tool to do exactly that, to let you know how much you have now, and how much you will need down the road.

It's a good idea for men, and an especially good idea for women.

Posted by Sophie Worthy 
 

Savings Should be Only Part of Your Financial Plan B

Even the most die-hard optimist can't feel completely hopeful about the economy these days. So you can imagine how self-described "awfulizer" Robert Brokamp of The Motley Fool must be feeling. In this article, Brokamp explains how he's always afraid that something awful is around the corner, especially when it comes to his personal finances and the overall economy.

Brokamp deals with his pessimism by having a solid Plan B in place: 

From both a financial and psychological point of view, I’ve learned to live with my “awfulizing” by having a plan for what would happen if my family’s situation changed significantly — what expenses we’d cut, which relatives we’d move in with if we lost the house, even where we’d rendezvous in case a major catastrophe prevents us from getting to our home.

The more prepared you are, the less stress you'll have if you ever need to put your plan in place. Obviously, having an emergency fund is important, but your savings are only one piece of the puzzle. Your Plan B should include several other components as well.

For one, consider the possibility you might lose your job, and figure out what you would do if that happened. Keep in touch with others in your network while you're still gainfully employed. As the article points out, many jobs are never advertised and are filled through referrals of existing employees.

Secondly, have an “income-outflow cushion.” If you live below your means, not only can you save more for an emergency, but your lifestyle will also be able to withstand a lower-paying job.

Prioritize expenses. Which items in your budget could you cut immediately if times got really tough?

Consider where you would access money should the need arise. Brokamp even provides a list to get you started thinking about this, and explains why dipping into your 401(k) should probably be low on the list.

Other suggestions include adjusting your long-term goals, creating a plan for ways you could "put your home to work" and knowing which items you could sell to raise some quick cash.

Even if you never have to use it--and hopefully you won't--having a Plan B can give you comfort and peace of mind and reduce anxiety during these uncertain economic times.

Contact us for more information about saving and investing for your future.

Posted by Sophie Worthy 
 

Speed Up Saving For Your Future by Eliminating Debt

Less debt means earlier retirement when you have the freedom to increase the amount you save for your future. Here's a quick rundown of how you can pay off your debts simply and efficiently:

  1. Put your debts in order. List them lowest balance to highest balance.
  2. Give your debt payments a place in your monthly budget. Pay the minimum amount due on each of your debts. 
  3. Concentrate on paying more than the minimum due on your debt with the lowest balance. Put all of your extra income towards paying off that one debt until it is eliminated.
  4. Congratulate yourself! Cross debt #1 off of your list.
  5. Do not adjust the amount of money you set aside each month for debt payment in your monthly budget. Make all of your minimum payments and use the extra money to work on debt #2. 
  6. Continue through the steps with each debt on your list until all of your debt has been eliminated. 
  7. Reevaluate your retirement plans. You now have the power to reach your goals. 

A great sense of satisfaction and independence comes with living debt-free. Like a comfortable and secure retirement, that satisfaction is well within your reach.

Debt elimination is a crucial step to gaining the momentum you need to spend your retirement doing the things you want to do, and living the life you've designed. 

To continue the conversation and find out how we can help you see where your savings will take you, contact us.

Posted by Sophie Worthy 
 

Investing Safely

With the recent stock market crash, the thought of investing  often leaves a bitter taste in our mouths. How can we know whether or not the company we are about to invest in won't crash? Is it better to invest in all your money in one company? Should you hire a broker? These are all questions that might flash through your mind when trying to decide the best way to invest your hard earned money.

If you have decided to invest in stocks, first study several companies. Look at their earnings for the past decade or so. Find out about the stability of the company. If you are extremely nervous, pick a company that has been in business for a long time. Play it safe. There is no reason to be cavalier with your money!

Don't invest all of your money in one company. Protect yourself against loss! Once you have invested, pay close attention to your stocks. You can buy and sell stocks fairly easily.

Deciding whether or not to hire a broker is a personal decision. Some people are fairly skilled in dealing with the stock market and can handle it on thier own. If you are not one of these people using a broker might be a good idea, at least until you become accustomed to the stock market a little better. There are companies like Etrade that allow you to trade on your own, without a broker. Many people like this option.

The most important thing to do is research! With the internet, everything is at the tip of your fingers. Take advantage of the information available and take your time deciding.

If you would like more information about organizing your retirement portfolio, please visit our website.

 

Posted by Sophie Worthy