Monthly Archives: August 2012

Tips to Control Spending after Retirement

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People who are very careful with their money save enough bucks to live a comfortable life after retirement. Saving while working is not very difficult but it becomes extremely difficult after retirement. Even if you have saved up enough money for your life after retirement, your old age will be miserable if you squander the money. To make your life comfortable after retirement and to make your savings last as long as you live, try to follow the following tips:

Plan Your Budget in Advance 

Preparing a budget and sticking very strictly to it is essential to have control over spending. You may think that you have plenty of money saved up but if you are lavish in your spending, whatever money is there in your account will vanish faster than you imagined. It doesn’t mean that you should cut back on your necessities. Just calculate how much you can afford to spend. Think of your old age and your expenses on medical care.

Avail Discounts Allowed for the Aged

Aged people are allowed discounts almost everywhere and you should ask for them if they are not offered to you. By availing these discounts, you can curtail your spending in your old age.

Invest Your Money in Income Generating Assets

Whenever you spend money, think whether your spending will generate income or the money will become dead. Rather than buying luxury items, buy things which will give you a decent return on your investment.

Take Up a Job

If you are physically fit, why not work either full time or part time? Working after retirement helps you to stay fit, earn some money and be in touch with the field which you are proficient in.

Stop Paying Your Insurance Premiums

By the time you retire from service, your children will have grown up and you will have saved up sufficient money to pull on your life in your old age. Your needs and the needs of your family are very limited now and you can easily go forward without the assurance from the insurance company. Why should you, then, continue to have life insurance and pay the heavy insurance premiums?

 

Tips On Saving For A College Fund

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So you’re a parent of a teen, and you need tips and strategies to begin a saving plan to send them to college or university. The first thing a parent must do when it comes to saving for a teen’s college fund is start early. There is no better time to start, than when they are born. As soon as you give birth to your child, it’s time to start saving, preferably through a Registered Education Savings Plan (RESP). Saving for college early is a great way to relieve a little of the stress that saving for college can do to a parent. Something else to keep in mind when it comes to saving money is to simply ask for contributions. For instance, instead of having grandma and grandpa buy you a new bike for your birthday or for Christmas, talk to them about contributing to your college fund. Your child can even raise the money him or herself by working odd jobs, like delivering newspaper or selling baked goods. The amount of ways you can put money towards college is endless. Once a child is at the age of being ready for college, parents play a huge part in financial advice and assistance. Never forget your role as a parent when it’s time for a child to make there entrance to college, because you are your child’s biggest supporter.

Cut Mortgage Costs with Simple Tricks

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With the extreme benefits that come with owning property, many desire to buy homes. But, those who are not rolling in money will most likely need to take out a mortgage, and as you likely know, mortgages can be costly. To pay off a loan in an efficient manner, there are various tips and tricks that can be followed. These can be broken down into seven primary groups: keeping a stable cashflow, using shorter amortization times, buying a smaller house, accelerated payments, shopping for good mortgages, buying a house that is a good long term decision, and making prepayments.

Having a stable cashflow is critical, as without it your payments may not be made on time. An unexpected dip in income or an emergency expense can send you scrambling, often having to make the choice between paying your mortgage bank a late fee plus overdue interest or taking out a payday loan and paying the high premiums associated with that form of debt.

Interest rates have a significant impact on cost of property over time. Because of this, cutting several years off of the time that it will take to pay the mortgage will significantly reduce the cost of the home in the long term, generally by thousands of dollars.

Buying a smaller house may also help with cutting costs. Space that is not going to be used is just costing you money. Adding these savings not only saves on the principle, but also saves on the cost of interest.

Another way to fight interest rates is through accelerated payments such as those offered by RBC Royal Bank. By paying twice a month rather than once per month, interest cannot build as fast, since interest is based on the principle, which is reducing more quickly. Every bank’s policies are different, so check with your lender for details.

While it may seem obvious, some mortgages are better than others. For a significant purchase such as a house, spending slightly longer to find a good mortgage will be worth it in the long term.

In addition to considering the cost of the mortgage, also consider whether the product is something that should be purchased in the first place. If you do not live in a house for a significant amount of time, you are likely going to be losing money on your mortgage.

Finally, make prepayments on your mortgage. Spending more than you are required to spend now will save you significant money in interest, and will get the mortgage paid sooner.

Following the above six tips will allow any homeowner to knock both time and money off of a mortgage, allowing money to be saved for other needs and wants.