More Than Finances

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Women, Easily Give Yourself A Retirement Account

Most people with children realize how to save money when two things happen. 1)  When the child moves from formula to milk and 2) When the child no longer needs you to buy expensive diapers.  I recognized that I, as well have given myself a increase by removing some expenditures around the previous few of many years in my quest to simplify my existence. I produced the following adjustments, resulting in important cost savings:

Hair Highlights

I give up getting my hair highlighted. Annual price tag cost savings: $1,120. I was a normal blonde in my youth. As my hair naturally darkened, I began highlighting my hair in salons when I used to be 19 (I lived in Texas with the time – it was rather very much a requirement). It became a vicious cycle to break because I usually had to retain up with my ‘roots.’ Previous year at 36 I decided to end the madness. I received a good colorist to match my natural color, and I got several high-quality haircuts to do away with people fried ends. I adore the independence!

Dropping the Manis and Pedis

Annual cost financial savings: $480. For any brief time (once more, even though living in Texas) I received sculptured nails. But I will not likely even handle that expense. That fad ended for me soon after a number of a long time. After that madness, I’d frequent the inexpensive nail salons in all those strip purchasing centers to get a monthly mani/pedi. At any time my toenail polish would commence to chip, I felt the should head back again into the salon. I cherished the feeling of becoming pampered in this sort of a girly way. But I recognized two points: initial, there’s no cause my nails can’t appear wonderful and presentable without nailpolish and second, there is no reason I cannot do it myself. I invested in a good manicure set, and now I do my very own nails every week although watching my preferred present, Nova, on PBS. I in fact take pleasure in carrying out my nails, I do a better career than the salons, and I get instant gratification.

No More Make Up

Estimated annual price tag cost savings: $200. I don’t put on a lot makeup – just blush, eyeliner, mascara and lipstick. I use to get a victim of individuals cosmetics present sets that are supplied while in the division retailer should you devote a particular level of cash. I would acquire points I failed to need to have just to obtain the present set. Converse about consumerism at its very best. Due to this fact, I had a drawer stuffed with ugly lipsticks. I ended that madness by switching to drug retailer brands and effortlessly, I can’t tell the difference in my cosmetics in any respect. I no longer acquire unnecessary products, and I can affordably replace my mascara every 3 months not having taking out a 2nd home loan.

Going Classic on Clothing

Annual charge cost savings: $800. I use to purchase many outfits products each and every period from outlets like Aged Navy and Target. I believed I was getting thrifty by purchasing there. They’ve cute designs, but needless to say the outfits don’t final over a year or two. As I entered my mid-30s, I recognized that currently being fashionable wasn’t as important to me anymore. Now I favor traditional styles and I only acquire quite great high quality products from stores like Brooks Brothers and Harold Powell. I shop a lot much less typically and just maintain the apparel that I private. My winter season work wardrobe consists of a couple of turtlenecks, a few cashmere sweaters, and three pairs of pants. Every thing mixes and matches and I often really feel great in my clothes. Following the preliminary investment in garments, I find I only have to purchase underwear and socks on an ongoing foundation.

This almost funds an IRA!


Disctinct and Different Monetary Periods

As men and women move ahead in their lives, there’s a tendency for the bulk of us to go through distinct monetary periods. Throughout these seasons, our objectives alter due to adjustments in our financial circumstances. These seasons, or phases, could be described since the asset accumulation phase, the conservation and safety phase, plus the distribution and gifting phase. While not all men and women undergo the seasons at the same time or perhaps attain a selected phase, a fantastic level of people today do undergo all three phases at some point in their lives. Here is actually a normal timeline for every phase, in addition to the prevalent objectives and issues connected with it.

Asset Accumulation

This phase is the starting up stage in the economical journey. It usually commences whenever a particular person enters the workforce, involving the ages of 20 to 25. The starting of this phase is characterized by restricted money for investing, a quite higher volume of financial debt, along with a very low net worth. The debts could come from college loans, automobile loans, credit card financial debt, or all three and much more. Considering that there aren’t a large level of assets owned by the individual, there’s normally not significantly imagined offered to economical pitfalls that exist.

But as a man or woman progresses through this phase, additional cash is accessible for investing, the quantity of debt like a proportion to their assets decreases, and their net worth rises steadily. Two with the most typical assets men and women wish to accumulate with this phase are a vehicle plus a property. This phase usually lasts until finally the age of 50.

Conservation and Safety

This phase begins after the person has acquired a number of assets, when the man or woman reaches their late 30’s or 40’s. For the duration of this season, the particular person has additional enhanced their net worth and lowered their proportional use of financial debt. Now, as people assemble up more assets, they usually develop into much less tolerant of risk. Alternatively, they are more involved about losing what they’ve gained than on getting much more. They are additional concerned with pitfalls that they could not have thought to be for the duration of the asset accumulation phase. These include, but will not be restricted to, the dangers of untimely death, unemployment, and long-term disability. As such, they start to take into consideration the should protect themselves from these hazards by buying the appropriate forms of insurance coverage.

Some people may possibly truly nonetheless be inside the asset accumulation phase as well, attempting to accumulate far more although hoping to not get rid of what they’ve obtained. This phase typically lasts for your entire time that the individual remains while in the workforce. And for many people, this phase may well previous for his or her whole lifetime.

Distribution and Gifting

This is the last of your 3 phases, and starts whenever a particular person has recognized that they can manage to devote on points that they’ve in no way believed achievable. Heading with the two preceding phases productively can make this phase feasible. For some, this phase may start as early because the late 40’s.

Sizable investments, reduced debt, and also a high net well worth characterize this phase. Folks in this period commence to feel monetary pressures declining, and look to get pleasure from their lives additional. Life insurance coverage premiums could be dropped and other deductibles could be raised. With their built-up prosperity, these people could contemplate paying for his or her grandchildren’s college tuition and going on expensive vacations. They could also go to more generally with the estate planner to plan the last decades of their lives and the subsequent transfer of their prosperity.

So what period have you been in right now? Do you’ve any desire to achieve the next phase? In that case, what actions are you taking to produce this take place?


Social Security Benefits – The Six Categories Of Benefits

Social Security Benefits – The Six Categories Of Benefits
The Social Security Administration offers six categories of benefits: retirement benefits, disability benefits, family benefits, survivors’ benefits, medicare, and supplemental security income benefits. Here’s a brief overview of each benefit and its qualifications.

Retirement Benefits

This is the one that most people are aware of. Full benefits are available at full retirement age – while reduced benefits can be taken at age 62 – to those born in 1929 or later who have earned 40 Social Security credits. Because of a change to Social Security law in 1983, full retirement age began to rise from age 65 for people born in 1937 or earlier, increasing in two-month increments to age 67 for people born in 1960 or later. Those who delay retirement beyond full retirement age will get an increase in their benefit when they retire.

Disability Benefits

Recipients of this benefit must have a medical condition that is expected to prevent them from doing “substantial” work for at least a year, or result in death. For 2010, earnings of $1,000 (if not blind) and $1,640 (if blind) or more per month are considered substantial. The number of credits you need in order to qualify depends on your age when you become disabled, and is separated into three age ranges: before age 24, between 24 and 30, and age 31 or older. This program has incentives to smooth the transition back to the workforce, including continuation of benefits and health care coverage.

Family Benefits

This is provided to certain family members of workers who are eligible for retirement or disability benefits. Such members include spouses age 62 or older, spouses under age 62 who are caring for a child under age 16, unmarried children under age 18, unmarried children under age 19 who are full-time students in a secondary school, and unmarried children of any age who were disabled before age 22.

Survivors’ Benefits

This benefit applies to members of the deceased worker’s family, if the worker earned enough Social Security credits. The members who are entitled to this benefit include those listed for family benefits, and may also include the worker’s parents if the worker was their primary means of support. In addition, a one-time payment of $255 may be made to the spouse or minor children upon the death of a worker covered by Social Security.


The two major parts of Medicare provide hospital insurance (Part A) and medical insurance (Part B). Workers who have reached full retirement age, or who have been receiving disability benefits for at least 2 years automatically qualify. Others must fill out an application.

The other parts of Medicare include a prescription drug coverage plan (Part D), and a plan to receive all health care services through one provider organization (Part C).

Supplemental Security Income Benefits

This is another benefit that provides monthly payments to those who reach full retirement age or are disabled. However, workers must have a low income and few assets to qualify. Generally, those who receive SSI also qualify for other governmental assistance such as Medicaid and food stamps.

This post was included in the Carnival of Personal Finance during the week of July 12, 2010. Check out Funny About Money’s blog for a variety of great articles!


Work Less, Live More By Bob Clyatt | Book Review

What would you do if you could retire a decade or two earlier? Would you travel the world? Volunteer for a worthy cause? Develop a hobby?

Just because the government suggests that you work until age 67, it doesn’t mean that you absolutely must follow their suggestion. In this book, Clyatt shows us that with disciplined saving, a detailed examination of your expenses, and the drive to stay focused, semi-retirement can become a reality.

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How To Calculate Social Security Benefits

how to calculate your social security benefits

Understanding the steps to calculate social security benefits may not be the easiest thing in the world to do, but here’s my attempt to demystify the process.

There are two basic steps to determining your monthly benefits. The first step is computing your average indexed monthly earnings, or AIME. The second step, which incorporates the AIME, is to determine your primary insurance amount, or PIA. The PIA is the basis needed to calculate social security benefits that are paid to you when you retire.

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