Stale Green Light

Are you prepared for a change in the green?

  • Sep 29

    When you make money, the easy thing to do is to spend it right away.  Though it is fun to buy new stuff, it is probably in your best interest to save that money.

    By putting your income into interest bearing accounts, you can be making money without lifting a finger.  You probably won’t make more than a few dollars  month, but that adds up over time.

    If you plan on not touching the cash for a while, consider putting it into a CD.  This earns you even more in interest but its best feature can also be a drawback.

    With CD’s you cannot withdraw any money until the time expires.  This is because the bank is loaning out your money to other people, which is why they pay you more to put it in their bank.

    This is a plus becuase it takes away the opportunity for you to spend that money, but if an emergency happens you can’t access the funds.

    The contracts range anywhere from a couple months to several years, so you have several options.  You could get out of your contract early, but it comes with a hefty fee.

    You can also invest in an IRA to save up for your retirement.  These are also interest bearing accounts that earn you money, and you can add as much as you want to it as well.

    You can withdraw from these accounts, but it is not advised since your monthly interest installment will decrease.  IRA’s are great ways to save for your retirement and still have some freedom with your funds.

  • Sep 27

    The most common mistake with credit card owners is overspending.  It seems harmless to buy things here and there, but if you don’t have the money in the bank to pay for those things you could be digging yourself a very deep hole.

    Buying with a credit card is great for building credit and racking up reward points, but it also makes it easy to spend more money.  For some reason swiping a card doesn’t feel as bad as counting out cash and handing it to a cashier.

    They both have the same outcome, but people who pay with cash tend to spend less because of the visual realization of exactly how much you are spending at the cash register.  Buying with a card is very smart for your future, as long as you are doing so wisely.

    Live within your means and only spend what you can afford.  Sometimes that means cutting back on luxuries like eating out every night, and getting your hair done weekly.

    Instead, make smart decisions that keep more money in your savings account and and keeps banks from constantly knocking on your door.  Create a budget that fits your needs and stick to it.

    It may be difficult at first if you are cutting back, but it will be worth it in the long-run when you realize that you are financially secure and independent.  Moral of the story: spend less, save more.

  • Sep 21

    Buying your a home is probably the largest investment you will ever make in your entire life.  The first mortgage can be a scary one, but one you understand the process and how it works you should be in the right position to make a good decision that will benefit your financial future.

    When looking for you first home, make sure that you are looking within your price range.  Many first-time home buyers have eyes that are bigger than their wallets.

    Don’t fall into this trap, only look at properties that you can afford with your income.  To know what your limits are, visit a mortgage broker and get the number for your real estate agent.

    How much house you can afford will be based on your income, your credit score, job security, and location.  All of these play large factors in how much money the bank will lend you.

    Do you research and make a good investment.  Don’t just buy any old house, find one that has the potential to appreciate value.

    This makes it so that when you sell it in a few years you will make a profit, which is always important.  This is a large commitment and should not be taken lightly, do all you can to find the right house, in the right area, for the right price.