Ben Franklin is quoted as saying that a penny saved is a penny earned, but he actually said that “A penny saved is two pence dear”, meaning a penny saved is two pennies earned. Apparently in Mr. Franklin’s day, pennies received a lot more attention than they do today. We tend to leave pennies behind in that little tray […]
Category Archives: Saving
Most bank savings and money market accounts provide periodic compounding of interest, which is the interest being applied to the balance for a given period (usually monthly). What makes this such a great benefit, is that the interest applied in the current month, is applied to the balance that includes the interest from last month […]
Sensible personal finance can seem like going against the crowd. Spending wisely and saving according to a plan that meets short-term and long-term needs; paying down debt, and more than the minimum on credit cards, and making sacrifices all seem contrary to what everyone else appears to be doing. It seems like a lot of […]
With interest rates staying at all time lows, we may be tempted to look at saving as a no-win situation. Monies deposited just aren’t accumulating any interest and with an annual inflation rate around 2%, aren’t we actually losing money on our savings? The short answer is yes, but a more prudent answer lies with the […]
We have to pay for necessities and make monthly payments on debt, so when we manage our finances these items get our attention. Saving on the other hand, tends to get the least attention because it seems optional. We can’t skip paying our rent or a car payment, but we can skip a deposit to our savings (or so it seems). […]
If you’re employer has a 401(k) plan and you’re not contributing, it’s time to take a serious look at the financial benefits these plans offer. Company sponsored 401(k) plans allow us to deposit a limited amount of pretax income (taken from our gross pay before taxes are withheld) to an account that grows tax-deferred. This […]
What is personal economic value and why is it important? Our personal economic value is our earnings potential or what can we expect to earn between now and when we plan to stop working. As an example, if I currently earn $44,000 each year, I’m 32 years old, and I plan to retire at age […]
Most experts agree that we need an emergency fund…a separate savings account that we set aside to cover monthly expenses in an emergency situation. If we experience a layoff or we’re unable to work for a period of time, the emergency fund is there to provide a financial cushion or safety net until our situation […]
Our saving plan should cover three essential areas: cash on hand for unexpected bills, money put aside to cover expenses in case our income is interrupted, and an account for later in life when we stop working or work in a reduced capacity. This approach protects our longer term savings from an unexpected withdrawal by providing for short-term […]
The basics of personal finance are a new focus for many people, and sadly for some out of necessity. Across our nation efforts to spend less, save more, and reduce debt are helping individuals to gain some control and stability. For many it’s a long hard road, but forming good financial habits will have life-long […]
Personal Finance Simply Understood 