I have seen most people getting desperate at hearing the word 'personal finance management'. This is because the whole concept of financial planning seems to be a bad dream for everyone. The concept of managing your finance seems to be overriding them with complete confusion.
The basic conclusion of all these confusion is that personal finance budgeting and management is almost impossible. This is absolutely wrong. The concept is surely confusing, but you need not consider it impossible to achieve. It is certainly difficult. But this is the minimum price you have to pay, in case you aim at a secure financial future for you and your family.
Change your attitude towards the whole concept and you will start finding it easier that you thought. If you are able to develop a sense of positive attitude towards the ides of 'budgeting your finance', then the whole process will seem easy. You will also get the determination that you need to follow the budget that you have made for yourself.
In short words, the interest or attitude of a person towards managing his own budget and finance is what decides how successful he can be in the field. If you have a wrong attitude toward the process, and begin making plans thinking that the task is going to be impossible, you will eventually mess up the whole process. So developing your attitude is the right attitude for starting your budgeting and finance planning activities. Only this right attitude can bring you success in your planning.
Friday, June 4, 2010
All About Mint
If you're a finance whiz and you really don't need any advice on managing your money, then this article won't be of particular interest to you; however, if you are a relative novice just looking to make sense out of what seems to be the extremely complicated and unpredictable world of finance, then mint.com could be just the thing for you.
Mint.com is an intuitive online financial and management tool that aims to aid people who need financial advice, and who would like to set and reach certain financial goals. Mint.com currently has over one million active users, the site helps them budget, pay bills and it gives them helpful advice on saving money, tax returns, investments and loan payments. The site is reasonably secure, and users can remain anonymous.
At mint.com, you can map out how to spend your money, and then even track your money farther down the road, and make adjustments if you have to. The site has an online budgeting tool, fun quizzes to hone your financial savvy, and possibly most importantly, a comprehensive listing of available financial investments and products available at any given time. You can compare CDs, credit cards, savings accounts, 401(k0 plans, etc. and work out which will work best for you. Mint.com is web based; you don't need to download any software, the service also includes time sensitive email and SMS alerts.
The blog section of mint.com it a veritable treasure trove of great financial news and advice. It isn't like the finance section of a newspaper though; the advice is practical, everyday wisdom; that regular people can take action on. The news is also relevant on a micro level. Blog topics include day to day issues that face real people like: getting out of debt, housing, retirement, student life, becoming wealthy, frugal living, employment, and the economy.
Mint.com is a totally free service, and it only takes five minutes to set up. Times being what they are, mint.com could be just the lifeline you need to make sense out of your finances.
Mint.com is an intuitive online financial and management tool that aims to aid people who need financial advice, and who would like to set and reach certain financial goals. Mint.com currently has over one million active users, the site helps them budget, pay bills and it gives them helpful advice on saving money, tax returns, investments and loan payments. The site is reasonably secure, and users can remain anonymous.
At mint.com, you can map out how to spend your money, and then even track your money farther down the road, and make adjustments if you have to. The site has an online budgeting tool, fun quizzes to hone your financial savvy, and possibly most importantly, a comprehensive listing of available financial investments and products available at any given time. You can compare CDs, credit cards, savings accounts, 401(k0 plans, etc. and work out which will work best for you. Mint.com is web based; you don't need to download any software, the service also includes time sensitive email and SMS alerts.
The blog section of mint.com it a veritable treasure trove of great financial news and advice. It isn't like the finance section of a newspaper though; the advice is practical, everyday wisdom; that regular people can take action on. The news is also relevant on a micro level. Blog topics include day to day issues that face real people like: getting out of debt, housing, retirement, student life, becoming wealthy, frugal living, employment, and the economy.
Mint.com is a totally free service, and it only takes five minutes to set up. Times being what they are, mint.com could be just the lifeline you need to make sense out of your finances.
Teach Children the Way to Manage Money
God has provided us with a great responsibility as parents. We have been chosen to teach our children how to live as respected Christian stewards. Paul reminded us that we are the driving force in our children's lives. Paul told us in Ephesians 6:4, "Fathers, do not exasperate your children; instead, bring them up in the training and instruction of the Lord." (NIV) It is up to us; society and our schools will not do it for us.
Talk to them
We need to talk to our children. When Moses received the Commandments, the Lord instructed us to teach our children constantly. Deuteronomy 6:6-7 says, "These commandments that I give you today are to be upon your hearts. Impress them on your children. Talk about them when you sit at home and when you walk along the road, when you lie down and when you get up." (NIV)
Communication is important to their development. They should learn about life from us, not the streets or television. They should feel comfortable coming to us about anything, whether good or bad. As parents, we have their best interest in mind, and advice should come from us, not their peers.
We should be talking to our children early about the importance of managing their finances. This information is not taught in the schools, especially from the Christian perspective. Since the media do not provide positive information, we need to be on the offense in teaching our children so that they will be ready to defend themselves when they step out on their own.
Be an example
Talking isn't enough. We also need to lead by example. If there is one thing I've learned about being a parent, it is that children are quick to imitate what they see. I have to be very careful about what I say and do around my daughter because she often imitates my behavior. However, I can use that to my advantage by showing her the right way to manage finances.
Our children should see us budgeting our money and paying our bills on time. They should see us using credit cards only to the extent that we are able to pay them off in full when the bill comes. They should see us living below our means rather than trying to keep up with the Joneses.
We should also show our children that we are responsible for the bills we create. What kind of example are we setting for our children if we ask them to tell the bill collectors that we're not home?
While we may come from households where parents did not discuss the household finances with children, we do not have to carry on that tradition. Children seek direction and guidance. Our children are eager to learn, and we are positioned to be their best teachers. We can show them what to do - and what not to do.
We don't like giving our children a negative image of us. But, they should know that we are not perfect. Let's be genuinely open with our children and allow them to learn from our mistakes.
Talk to them
We need to talk to our children. When Moses received the Commandments, the Lord instructed us to teach our children constantly. Deuteronomy 6:6-7 says, "These commandments that I give you today are to be upon your hearts. Impress them on your children. Talk about them when you sit at home and when you walk along the road, when you lie down and when you get up." (NIV)
Communication is important to their development. They should learn about life from us, not the streets or television. They should feel comfortable coming to us about anything, whether good or bad. As parents, we have their best interest in mind, and advice should come from us, not their peers.
We should be talking to our children early about the importance of managing their finances. This information is not taught in the schools, especially from the Christian perspective. Since the media do not provide positive information, we need to be on the offense in teaching our children so that they will be ready to defend themselves when they step out on their own.
Be an example
Talking isn't enough. We also need to lead by example. If there is one thing I've learned about being a parent, it is that children are quick to imitate what they see. I have to be very careful about what I say and do around my daughter because she often imitates my behavior. However, I can use that to my advantage by showing her the right way to manage finances.
Our children should see us budgeting our money and paying our bills on time. They should see us using credit cards only to the extent that we are able to pay them off in full when the bill comes. They should see us living below our means rather than trying to keep up with the Joneses.
We should also show our children that we are responsible for the bills we create. What kind of example are we setting for our children if we ask them to tell the bill collectors that we're not home?
While we may come from households where parents did not discuss the household finances with children, we do not have to carry on that tradition. Children seek direction and guidance. Our children are eager to learn, and we are positioned to be their best teachers. We can show them what to do - and what not to do.
We don't like giving our children a negative image of us. But, they should know that we are not perfect. Let's be genuinely open with our children and allow them to learn from our mistakes.
The Alternative Savings Accounts
Because of the typically low interest rates that come with passbook accounts, some people just consider them a safe place to store money, and not really money earning investments. There are actually many types of savings accounts to choose from, each with different pros and cons. While all saving accounts are considered conservative investments, you can earn quite a bit if play it smart:
Passbook Accounts - These are "plain vanilla" saving accounts. You are given a ledger called a passbook, and in it, all your deposits, withdrawals and interest are recorded. There is typically no minimum balance, no fees, and you can withdraw and deposit as often as you want. Passbook accounts are FDIC insured for up to $100,000.
Money Market Accounts - Compared to passbook accounts, money market accounts require a minimum balance, earn better interest, and can usually come with a limited number of withdrawals in a month.
Health Saving Accounts (HSAs) - Intended for use during medical emergencies, the main feature of the HSA is that the money you put into it is up to $5,000 a year is tax deductible. The money will only remain tax deductible if it is withdrawn for medical expenses. HSAs are offered to compliment High Deductible Health Plans.
High-Yield Saving Accounts - These are accounts that are sort of a marriage between passbook accounts and certified deposits (CDs). A large minimum balance is required, interest is high, but withdrawals are allowed with restrictions in amount and frequency, no fees are charged provided withdrawals are kept within agreed limits.
Retirement Saving Accounts - Accounts specifically designed for retirement, there are IRAs, 401(k) plans, and Roth IRAs. All accounts come with some form of tax break, but on condition that withdrawals can't be made before a certain age.
Foreign Currency Savings Accounts - In these uncertain times, the strength of the Dollar is not what is used to be. If you're looking not just to save money, but to protect your money from currency fluctuations, it might be best to keep it in a foreign currency that is more stable. These are typically available from multi-national banks.
These are actually just a few of the available options. There are a lot of saving accounts out there we haven't mentioned, banks do try to mix it up to cater to different needs. If you shop around, you'll find one that suits your needs best.
Passbook Accounts - These are "plain vanilla" saving accounts. You are given a ledger called a passbook, and in it, all your deposits, withdrawals and interest are recorded. There is typically no minimum balance, no fees, and you can withdraw and deposit as often as you want. Passbook accounts are FDIC insured for up to $100,000.
Money Market Accounts - Compared to passbook accounts, money market accounts require a minimum balance, earn better interest, and can usually come with a limited number of withdrawals in a month.
Health Saving Accounts (HSAs) - Intended for use during medical emergencies, the main feature of the HSA is that the money you put into it is up to $5,000 a year is tax deductible. The money will only remain tax deductible if it is withdrawn for medical expenses. HSAs are offered to compliment High Deductible Health Plans.
High-Yield Saving Accounts - These are accounts that are sort of a marriage between passbook accounts and certified deposits (CDs). A large minimum balance is required, interest is high, but withdrawals are allowed with restrictions in amount and frequency, no fees are charged provided withdrawals are kept within agreed limits.
Retirement Saving Accounts - Accounts specifically designed for retirement, there are IRAs, 401(k) plans, and Roth IRAs. All accounts come with some form of tax break, but on condition that withdrawals can't be made before a certain age.
Foreign Currency Savings Accounts - In these uncertain times, the strength of the Dollar is not what is used to be. If you're looking not just to save money, but to protect your money from currency fluctuations, it might be best to keep it in a foreign currency that is more stable. These are typically available from multi-national banks.
These are actually just a few of the available options. There are a lot of saving accounts out there we haven't mentioned, banks do try to mix it up to cater to different needs. If you shop around, you'll find one that suits your needs best.
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