Saving for a Rainy Day

CityDEALS Giveaway :-)

2010-03-23T11:36:00.000-07:00

Win a FREE stay at the Peery Hotel Stay and Dinner at Christopher’s Steak & Seafood!!

Simply enter in your information and refer a friend to be entered!

The winner AND the person that referred them BOTH WIN!! If your friend wins – you do too!!!

(click on the link to enter)

http://marketing.citydeals.com/giveaway/

Dress like a Fasionista Without Breaking The Bank

2010-03-18T10:38:00.000-07:00

On my most recent fashion finding trip I picked up a bag full of name-brand apparel including labels like Michael Kors, Tommy Hilfiger and Tahari – for over 90% off retail. I didn’t hit the consignment stores or thrift shops. No secondhand clothing this time -- my deals were brand new with the tags still attached. I got nearly $700 worth of clothing for only $20. That’s less than I would have spent at the thrift store! I walked out of the store with jeans, a dressy jacket, a fun swing top, and a casual blouse. That trip wasn’t just dumb luck. I’ve had similar experiences each and every year. I’ve stumbled upon sales so often that most of my wardrobe has been purchased like that.

Timing is everything. The best markdowns occur at the end of each season. Mid-to-late September and January are my favorite times to look for clothing deals. That’s after the back-to-school rush has subsided and all the Christmas sweaters and outfits have been returned.

Make sure that the styles aren’t too trendy and will still look good next season. Since most of the rock-bottom prices are at the end of each season, you’ll be socking most of your bargains away and be wearing them next year. That’s fine as long as you’re opting for styles that will stand the test of time.

Shop often, but purchase rarely. Scope out markdowns on a regular basis, but resist the urge to buy until prices hit rock bottom. Don’t have time to visit the stores yourself? Let the internet help you. You can find TONS of DEALS on the internet.

SLUSH FUND $$

2010-02-10T10:30:00.001-08:00

I don’t know about you but I love to travel. As we all know traveling costs $$ sometimes LOTS of $$. I have a SLUSH TRAVEL fund that I keep separate from my other saving and checking accounts. This fund allows me to take a vacation on a whim.

Each time I get paid I set aside $200 in my slush fund. A couple of weeks ago, I had the opportunity to take a last minute trip to the beach. The lodging was free and I only had to pay for food and drinks. I spent about $200 and I didn't have to pull the money from my regular budget and I didn't have to touch my emergency fund or regular savings. It was also nice to not have to worry about whether or not I could afford it. As long as I have money in the slush fund to cover the purchase, I can afford it. After all, that's what it's there for.

Where to Park Your Cash

2010-01-26T14:35:00.000-08:00

By: Motely Fool Staff

www.fool.com

You have money, you need a place to put it for a while and the financial institutions are lining up at the door. You may be tempted to fall for whatever suitor makes a good first impression, but remember: This choice is all about you.

The best short-term savings account is the one that best matches your needs in the following areas:

Access: How often will you need to dip into the account, and what's your preferred method of access -- ATM, checkwriting, online, and the like?
Interest: How much will the institution pay you for babysitting your money, and does the amount you need to park in the account qualify for the best rates?
Service: Might you require bells and whistles, such as in-person customer service, or are you more of a DIY, low-maintenance customer?
Penalties: Should your plans change -- you need to get to your moola sooner than planned, for example -- how harsh of a punishment will you need to endure?

Now, let's review the major aspirants:

Checking accounts
Checking accounts are meant for transactions, not savings. That's why many don't pay much, if any, interest. However, some banks do combine the conveniences of checking with the return of a money market account. Also, as "asset management" accounts at brokerages become more feature-rich -- offering unlimited check writing, ATM access, and money market rates -- more folks are shunning the banks in favor of brokers.

Pros

Your money is only a check or an ATM machine away.
A bank branch is usually not far, often in your grocery store, if you're so old-fashioned as to want to deal with a human being.
As with all bank deposits, checking accounts are insured by the Federal Deposit Insurance Corp.

Cons

Depending on the bank, you may not earn much, if anything, on the money in your account.
Many checking accounts require a minimum balance or charge fees, or both, which are a pox upon your pecuniary patience.

Savings accounts
In the old days, savings accounts -- or passbook accounts, as they're sometimes known -- were the most popular rest area for short-term savings. Fortunately, folks are getting smarter and parking their pelf in higher-yielding investments. The pittance you earn in most savings accounts isn't enough to even keep up with inflation.

Pros

The money in a savings account is insured by the FDIC.
Account minimums are often low.

Cons

The return on savings accounts is so low, some mattresses pay more in interest.

High-yield bank accounts
Nowadays, you can find high-yield savings and checking accounts. They're an ideal place to park money for your monthly bills. They offer flexibility (you can add or withdraw funds at any time) and liquidity (your dough isn't locked in for a specific time period). Some even boast interest rates on par with more restrictive investments like CDs. The best rates by far are offered by online-only banks that keep costs low by cutting back on frills.

Pros

Better rates than many standard bank accounts.
Same FDIC insurance applies to high-yield accounts.

Cons

Bare-bones banks with no ATM/debit access or check-writing privileges can be a big hassle if you need your cash fast.
Customers must coordinate their cash flow by transferring money back and forth from the online bank to a linked checking/savings or brokerage account. That means delays -- two to five days -- before everything's reconciled.
Watch out for limited-time teaser rates by researching the product's six-month interest rate history.

Money market deposit accounts
Money market deposit accounts are offered by banks, usually require a minimum balance, and permit a limited number of transactions per month (six transfers, three of which can be checks written on the account).

Pros

Money market deposit accounts are very liquid. Most allow for easy access through checks, transfers, and even ATMs.
Because they are offered by banks, money market accounts are insured by the FDIC.

Cons

Unfortunately, you may pay for the liquidity by receiving less in return than from certificates of deposit.
If your account falls below the minimum required balance, or you exceed the limited number of transactions, you might pay a penalty.

Money market funds
Money market funds are offered by brokerages and mutual fund families. These funds invest in highly liquid, safe securities such as certificates of deposit, government securities, and commercial paper (i.e., short-term obligations issued by corporations).

Pros

With a money market fund, you can have the money in your hot little hands very quickly. Often, you can write checks or use an ATM card.
The returns on money market funds are typically higher than the return on money market accounts.
Issuers go to great lengths to keep the NAV (the price of each share of the fund) at $1, so your principal is relatively safe.

Cons

Money market funds are not FDIC insured.
There is no guarantee that the NAV will remain at $1.

Certificates of deposit (CDs)
CDs are debt instruments with a specific maturity, which can be anywhere from three months to 60 months (i.e., five years). Most CDs are issued by banks, but they can be bought through brokerages.

Pros

CDs are very safe because most are offered by banks, so they are FDIC insured.
Depending on how long it is to maturity, CDs may pay more than money markets.

Cons

Your money is off-limits until the CD matures. If you must, you can redeem the CD early, but you'll pay a penalty.

U.S. government bills or notes
"Treasuries" are backed by the full faith and credit of the U.S. government. Treasury bills mature in less than a year; Treasury notes mature between two and 10 years.

Pros

Treasuries are considered the safest investments in the world.
They can be bought directly, commission-free, at TreasuryDirect.
They are exempt from state and local taxes.

Cons

If you shop around, you might get a better return from money markets, CDs, and corporate bonds.
If you need your money before the security matures, you may not get back all of your original investment.

I Bonds
No, they have nothing to do with the Internet. I Bonds are inflation-indexed savings bonds issued by the U.S. government. The amount an I Bond pays is adjusted semiannually to keep up with inflation and protect the purchasing power of your money.

Pros

I Bonds are backed by the full faith and credit of the U.S. government.
The "I" in I Bond protects your investment against inflation risk.
They are sold in manageable denominations, ranging from $50 to $10,000.
They can be bought from most financial institutions, including TreasuryDirect.
The earnings are exempt from state and local taxes, and can be tax-free if used for post-secondary education expenses.
Taxes on earnings can be deferred for up to 30 years.

Cons

You must hold an I Bond for at least 12 months, and you will pay a penalty of three months' earnings if you redeem the bond before owning it for five years.

Municipal bonds
Municipal bonds (or "munis," as the big talkers refer to them) are issued by state and local governments in order to build schools, highways, and other projects for the public good. Municipal bonds are most attractive to high-income investors looking for tax-friendly income.

Pros

Munis are just a step down from U.S. securities in terms of safety.
Income is exempt from federal taxes, and might be exempt from state and local taxes if you live in the municipality that issued the bond (check on the tax implications beforehand).

Cons

Interest from munis is relatively low. Unless you're in a high tax bracket, you'll usually get a better return from other investments.
You may have to pay a commission to buy municipal bonds.
If you need your money before the bond matures, you may not get back all of your original investment.

Corporate bonds
Corporate bonds represent debt issued by companies, from the blue chips to the "cow chips," if you know what we mean. The more creditworthy the company, the less it'll pay in interest. Moody's and Standard & Poor's rate companies as to their ability to meet their debt obligations. Only short-term bonds are appropriate for short-term savings.

Pros

Corporate bonds usually pay more than government securities, money markets, and CDs.

Cons

The company that issued the bond could suspend interest payments, or even go belly up.
You may have to pay a commission to buy bonds.
If you need your money before the bond matures, you may not get back all of your original investment.

Bond funds
Bond funds are mutual funds that pool the money of investors to buy bonds of all stripes.

Pros

They are an efficient way to buy bonds in small increments and get the diversification that minimizes the risk that you picked a bond from a deadbeat company.

Cons

The NAV (i.e., the share price) of a bond mutual fund fluctuates, because of interest rate movements and the bonds bought and sold inside the fund. Therefore, you're not sure exactly how much of your original investment will be around when it's time to take your dough. Likewise, the yield on a mutual fund fluctuates.
You will pay an ongoing expense to own the fund, called the "expense ratio," and you may have to pay a commission, called a "load."

This story is adapted from a Robert Brokamp article. It has been updated.

Still browsing in the "Financial Accounts" aisle? The Fool's personal shopper is here to help you:

Open a brokerage account.
Pick the best at-work health plan.
Find the best credit card ever.
Save thousands on home financing.
Hire a tax pro in the know.

SMART SHOPPING

2010-01-13T10:57:00.001-08:00

My goal for 2010 is to SAVE MORE – SPEND LESS. One of things I am doing is shopping smart. The tactic that I am using to help shop smart is using discount gift cards & gift Certificates. Right now my favorite site to use when looking for a great deal is CityDEALS! Right now they are having a clearance sale. Save up to 80% on over 60 NATIONAL brands. FREE Shipping for ALL clearance orders. It's a great time to shop & grab ALL the great deals :-)

www.citydeals.com

Top 10 New Year’s Resolutions that save money!!

2009-12-31T09:50:00.000-08:00

1) Pay a little on your mortgage

2) Reduce your credit card debt

3) Keep a budget, even if only for a week

4) Enroll in your employer's flexible healthcare spending plan

5) Become a coupon clipper

6) Get started on a few small projects to make your home more energy-efficient

7) Eat out less

8) Cut your taxes

9) Review your Insurance Policies

10) Finally Quit Smoking

Warm Getaway

2009-11-16T08:29:00.000-08:00

I love to travel. But unfortunately we all know traveling costs $$$. So in order for me to travel like I want I save 10% of my pay check every time I get paid. I always want to go some where warm in the winter to get away from the snow. We JUST had our first snow storm!!! I love to scuba dive - its fun to go some where different every winter for the new diving experience. This pic of Tahiti.

Keeping money out of your reach

2009-11-12T11:01:00.000-08:00

It is human nature to use what we have within our reach. Money in my wallet or on my debit card falls easily in that category. So if you are really trying to set it aside and plan for either a safety financial net or for a family vacation, you need it get it out of your reach at least without a day or two wait.

The way I have solved this problem is with an online only bank account. The company that I personally use (and I am not trying to advertise for them to you) is ING direct. There is no direct way for me to access my money. I have no bank card with them and they isn't any branch that I am aware of. To access my money, I need to transfer money to or from them, through another bank account.

There are many benefits to these type of accounts. The first is that you get a higher interest rate from these banks because they don't have to pay the overhead to their bank employees. Second, though the transfers are free between the two banks, it takes a good day for the money to transfer and this help stop impulse purchases. This tactic has worked for me.

Need Funds For A Rainy Day

2009-10-15T14:39:00.000-07:00

Unexpected things happen in life all the time which requires $$.

I always try to save a little bit of each pay check I get for a rainy day.

Who knows when something might happen like a flat tire or

a tooth filling in need of replacing. I can think of

so many "rainy day" excuses that require $$.