Roth IRAs are Awesome!

It sounds counter intuitive to think that you should take the hard earned money that Uncle Sam has already taxed and stick it in a Roth IRA. I mean you already put money in a 401k that hasn't been taxed yet and hurts you so much less because it's been taken out of your grubby little hands before you saw the final paycheck amount you get to stick into your bank account. Your instinct says, "This is my money and why should I give less money to retirement when it could have been more money given before it was taxed?". Well there is a very good reason. There is NO tax on your Roth IRA when you cash it out. That's right nothing at all. Its a real dream scenario. Compare it to your 401k which is taxed just like income with you cash it out in your golden years. It's nice but not as good as tax free. Now of course you did pay taxes on that money when you first put it in the Roth IRA but 20 years from now that money is gonna grow and grow. That's big money out of Uncle Sam's hands and right into yours. So look into a Roth IRA and start squirreling away those nuts!

Using Coupons

I love using coupons. They save you money just by taking the time to review them, cut them and take them with you when you shop. I suggest sticking with coupons that are going to save you at least .50 cents. Anything less, for me, isn't worth my time and effort. Also consider if you really want that specific item or if a generic will suffice. Usually the generic is cheaper but there are some types of items where you only want the name brand. I've purchased generic peaches and found them not as fresh as the name brand. So I stick with name brand. When it comes to re-fried beans I just go with generic because I add so many other things to my re-fried beans when I cook them so it doesn't matter much on the level of quality. Also, watch out for the buy more than one coupons. If you don't use it quick enough it will spoil plus a lot of coupons are for junk food that you shouldn't be eating so much of. My favorite coupons are for haircuts and restaurants.

Beware of Credit Cards

I only use one credit card. I used to use three or four but I found it so difficult not to overspend. There is a sense that the credit limit you have been given is your own money. Well its not. I wish. And everything seems to go along just fine. You spend the credit card's money and get to keep your own until the end of the month. Then you look at the credit card statement and are shocked at how many zeros there are in the balance due. The worst situation comes when you finally lose that job you really never liked in the first place but you never really saved enough money to last you more than a couple of months. That is when you yell "help!". But it's too late for that and here come the minimum payments and the 17% interest charges. As if that wasn't the worst of it you find yourself spending even more with the credit cards trying to stretch out your savings. The hole of debt grows faster than you can fill it and then you go into denial.

So you know the rest of the story. Take a lesson from the millions of people who have made this mistake. Don't think of a credit line as your money. It is NOT. So save at least six months of your money so you can pay your bills when you lose your job. You will be so glad you did.

Where Should I Invest My Money?

So you've finally saved some money and are shocked that it only earns .1% interest per year at your local bank? Don't be. Interest rates are at all time lows right now plus there is zero risk involved in letting your money sit at a big bank that is FDIC insured. The problem is that the cost of living goes up every year and it rarely goes up as little as .1%. So you are actually losing money every year it sits there because its value is declining. So what do you do?

The best thing to do is to take inventory of what your goals in life are. Do you want to learn a new skill? Invest in your education. How about your own business? Maybe you have a passion for something that interests you and you have learned it can make some money? How about the stock market or real estate? These are some of things that are the foundation for your financial security and growth of your future income. The options are endless but they all involve risk and effort. So don't put all your money in one basket and take your time.

Keep a savings account, a checking account and build that retirement account but also expand into other areas. In the end we all want our golden years to be the best years of our lives.

Where is Your Money?

You will never know how to make and hold on to your money if you don't know where it is. I know you probably have a checking account and maybe a savings account but what about your car or your house. All of these things are money transformed into a physical object. Take the time to make a list of all the things you own and the value of them. Then make a list of all the money you owe and discover your net worth. This will give you a better of idea of your financial health. It's easier to know where you are going when you first find out where you are at.