Saving Money on Back-to-School Shopping
It’s that time of year, when students of all ages begin to wind down from their summer vacations into the reality of going back to school. For many, this is time of stress, a time to mourn the ever-dwindling days of summer. For parents buying the supplies children will need going back into the classroom, though, this can signal a whole other level and type of stress.
As with most other amenities, school supplies are rising in cost. And thanks to budget cuts in many school districts, the responsibility of purchasing many supplies is being placed onto the shoulders of the parent. For older students (those pursuing varying levels of college, post-graduate, doctoral or law degrees), there is the considerably larger issue of paying tuition – another necessary educational expenditure whose cost is on the rise.
So how does one afford all of these costs – big or small?
In regards to school supplies, it’s important to stock up when you can (even when it is not necessarily time for back-to-school shopping – you never know what sales you may find). Also, keep an eye out for weekly sales at business and school supply stores such as Staples, who offer radical deals on the essentials if you’re both wise enough to find out when the sales are happening, and brave enough to contend with the other parents who have thought similarly. The money you save will make the effort worthwhile.
When it comes to funding a college education, though, the costs involved are (of course) much larger, and require years of thought and consideration. Hopefully you have planned for your education (or, depending on your age, your family has done so for you). Ideally, college planning should start at birth, and continue through the child’s matriculating years. This can be accomplished through a combination of bonds, investments, life insurance cash values, and as the child gets older, scholarships, student loans and savings accounts.
If you need help or advice with college savings plan and college planning techniques, reach out to us at BeamaLife by calling (877) 972-3262. We can help you figure out how to use the cash component of your life insurance policy for college tuition (or help you find an affordable life insurance policy with one, if you don’t have a policy already).
Declaring your Financial Independence
There’s no time like the present to start down that road – proper financial planning, hard work and diligence could get you to where you want to be with your finances. First, though, you’ll have to confront the truth about the situation by taking an honest look at where you stand. Plainly put, what do you have, what do you owe, and how much are you bringing in? You need to figure out exactly how much you have saved, and take detailed stock of where and how it’s being saved. Then, you need to write down all of your debts – all of the monthly bills, the loans, the credit cards, and any other expenses. Lastly, you need to factor in your income, and budget those funds accordingly so that you can put more money toward your savings, chip away at your outstanding balances, and still have money left to spend on essentials (and occasional frivolities).
In many cases, you don’t have at time limit. Rather, you simply have a consistent (likely monthly) set of bills that you must pay toward reconciling your debts and maintaining residence and essential services. So take the time you need to adjust bills accordingly, and talk candidly with those to whom you owe money about realistic billing plans. Once you have a consistent and workable system in place, all you have to do is stay on top of your affairs.
Often, this task may feel daunting and restrictive. The end result, however, will be just the opposite, and well worth the effort.
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A Post for the Men
Whenever financial conversations are split along gender lines, a majority of the discussion tends toward fiscal issues that face women. There are, in fairness, a great many issues that can be discussed in regards to gender inequalities that negatively affect the fairer sex. This time, however, we would like to focus on the men.
It is often assumed that men, due to their continued ability to earn more than women employed in the same capacity, should have an easier time saving money, an easier time supporting a family and an easier time making large purchases. Stereotypically cast as the breadwinners, the dominant gender, the hunters and gatherers of society, men are held to incredibly high financial standards, and are sometimes made to feel like failures if they happen of all short (even if they do so because of circumstances beyond their control).
The truth of the matter is, the economic downturn has been rough on everybody, no matter what gender, race or religion they happen to be. But according to the results of an extensive survey coordinated and conducted by Men’s Health Magazine, men are finding ways to survive all the same. Even those who put the survey together admit to being pleasantly surprised with the results.
Some of the more interesting findings revolve around the participants’ perspective on their personal finances. The men asked seemed optimistic about their finances, and about the fiscal picture they saw painted for their future. Many wished to make more money, but that is a symptom suffered by most people, no matter who or what they are.
There were, of course, some less surprising elements, especially in regards to the sort of happiness and satisfaction men would find in having more money – as well as some rather unsavory ones (consider this a warning for those easily offended). But overall, it seems the recession from which we are still presently recovering (and will be for a considerable length of time) has not dampened the spirits of men overall.
For us, the biggest cause of concern is the lack of saving the participants had admitted to doing, both in regards to emergency funding and retirement planning. No matter who you are, there are two things that you need to do – save, and save more. Having adequate money put aside for the times in your life when you don’t have a steady or adequate income (namely, when you least expect it, and when it comes time for you to retire) is incredibly important.
We hope the optimism displayed continues to prevail through stormy economic seas, but we also hope this isn’t a foolish optimism, that leaves people unprepared at the most inopportune times.
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The Lower Standards of the Personal Finance Industry
Recently, two news stories came out that have highlighted an alarming and ever-growing trend in finance, an industry already riddled with issues due to the country’s economic collapse and subsequential attempt to regain stability. But as these attempts continue – and are chronicled in detail by the press – a great deal of companies that handle various facets of finance are being exposed for the lack of care and general lowering of standards in their practices.
Primerica, Inc. is weakening the proficiency test their agents are required to pass, in order to reduce their employee turnover rate. And these lower standards have caused serious problems for everyday, hard-working Americans (such as Keon Williams, who may be evicted despite paying his mortgage in a timely fashion without fail).
These stories are coming out which increasing frequency, churching further resentment of the financial sector in Americans who continue to struggle to get by in a tumultuous economic climate. But worse than the rift between company and client, or between classes, is the overall trend reflected in these stories – a lesser standard, a lower bar to which many financial giants hold themselves.
It is difficult to watch this trend play out, especially given the importance of handling the money of others – the very security and future of these families is often tied into their finances.
This is why it’s increasingly important to make sure your money is handled by a company you trust, and a company that remembers the importance of customer satisfaction. Before signing on the dotted line for any insurance policy, or with any bank, make sure to research what others have said about their satisfaction (or lack thereof) with the service of a particular institution. Talk to your friends and family for recommendations, and look up how a company fares when rated next to others offering the same service.
BeamaLife uses this principle to compare life insurance options for its clients, and the result is a product with which the client can be satisfied and at-ease in regards to the future security of his or her family. You owe it to yourself to apply such principles to every other part of your financial plan – and beyond.
I’m worried about making my finances work while I’m unemployed. Do you have any advice?
The present economic climate has not yielded a large amount of good news for those seeking jobs. It is especially frustrating for those who are unemployed and trying to find work. The headlines fluctuate from week to week in regards to the amount of jobless claims filed, and the amount of new jobs being created. But even in a functioning, healthier economy, finding a job can be a rather difficult and time-consuming process.
If you’ve been fired or laid off, there are ways to protect yourself from creating credit and debt issues as you search to regain control of your work situation while also paying your bills and affording necessary groceries. Start by budgeting out your absolute necessities for the next six months (such as your rent and utility bills, and grocery expenses). Find ways to cut back on spending, either by limiting what and how you spend on groceries or by examining phone and television plans to trim them of excess).
If you are older and considering cancelling your life insurance policy to save on the cost of premiums (or, if you don’t have life insurance, putting off purchasing a policy), try to keep in mind that your policy isn’t so much for your benefit, but for the benefit of those around you. And if you’ve come onto tough financial times, should something happen that results in your death, your family would need the money provided by a life insurance benefit payout more than ever. There may be some coverage options in your life insurance (or other forms of insurance, such as car or health insurance) that could be trimmed to reduce costs, however. Look over your policies and talk with your insurance agents for details.
If you’re reading this and still have your job, but have concerns regarding job security, it would be wise to plan ahead, in case you suspect layoffs on the horizon. Ideally you would be saving money already (some suggest putting away 10% of every payment you receive), but if not, it would be wise to start doing so. Try to have enough savings to last you three to six months, so that the instability of the present job market doesn’t leave you scrambling for money to make ends meet in the event of job loss.
No matter what your job situation, be sure to use logic in all of your financial decision-making (for example, avoiding shopping sprees with unemployment checks), and don’t close yourself off to the possibility of acquiring a job outside of your realm of expertise and experience to make ends meet. The most important thing is to maintain as much financial stability as possible through your tough time.
Is there a recommended minimum amount to have in one’s savings account for the sake of emergencies?
Most financial professionals agree that having three to six months of expenses saved specifically for emergency circumstances is best. If you happen to lose your job, or become disabled (without adequate disability insurance), you’ll need that money to continue paying regular monthly expenses and bills until you find another job or other way to fill that income gap. If you don’t have that savings cushion, your assets are put at risk. And if your car breaks down, or a medical emergency happens in the family, you’ll want to have the money necessary to pay those bills. The goal is to never face an immediate need for cash, only to find you have none.
Make sure your emergency fund is in a place that allows you immediate access, as opposed to a certificate of deposit (CD) or other long-term investment. Though you can pull money out of your CD early, you would have to pay a fine. It would be best to store emergency funds in a traditional savings account, a money market deposit account, or a short-term CD (such as six month) – something more liquid, in short. That way, you will be able to easily access the cash when necessary, without incurring any sort of penalty for doing so.
Keep these emergency funds separate from your everyday spending accounts. To make the separation more definite, you may even want to store emergency funds at a different bank. Even very disciplined persons would be tempted to spend those extra funds if they were kept in your checking account.
And lastly, be wise about what constitutes an emergency – if an expense can wait a week or more, it is not an urgent situation.
