America Saves Week – Concluding Day – Money Management Tips

1. Where do people put their savings dollars?  Savings accounts and certificates of deposit (CDs) are popular choices. Accounts can be opened at financial institutions such as commercial banks, savings and loans, and credit unions. Rates of return vary among financial institutions as do the maturity periods offered (e.g., 6-, 12-, and 24-month CDs). Generally, the longer the maturity on a savings product, the higher the interest paid. Become an American Saver at http://bit.ly/gliVkL. 
2. Money market funds are a popular option for savers. They are a type of mutual fund that invests in short-term government securities and commercial loans and pays market interest rates. Initial minimum deposits generally range from $1,000 to $10,000 so you may need to save elsewhere first to accumulate the required amount. Money market funds are very liquid because they generally come with a check-writing option. Become an American Saver at http://bit.ly/gliVkL. 
3. Saving regularly is the key to financial success. Whether you’re accumulating an emergency fund or saving for a vacation, a car, or retirement, you’ll be amazed how fast your savings will grow with regular deposits. At any age, saving today is better than waiting! Start by participating in a payroll deduction plan at work and become an American Saver at http://bit.ly/gliVkL.
4. Today is the final day of America Saves Week. America Saves is a national campaign to persuade Americans who have little or no savings to “build wealth, not debt.” Savers identify a savings goal and take action on a plan to achieve it. The America Saves program is free and motivational. Check out these monthly messages from America Saves e-wealth coaches: http://bit.ly/hSJnXY. 
5. The only sure-fire way to get ahead financially is to spend less than you earn. Counting on a big inheritance or settlement, a wealthy spouse, a game-changing invention, or winning the lottery cannot be guaranteed. Every successful financial plan includes some type of savings. Are you an American Saver?  Join America Saves today at http://bit.ly/gliVkL. 
6. During this past week, you’ve received daily messages about the benefits of saving money, how to save, where to save, and why to save. As America Saves Week winds up, I’d like to know if these messages were helpful and if you joined America Saves and set a personal savings goal to achieve. Please complete this short online survey: http://bit.ly/ExSurvey  It is short (3 minutes) and everyone who completes it will be entered into a drawing for free gift cards. 
7. During this past week, the America Saves Week campaign has called attention to the need for regular savings and debt reduction to achieve financial goals and provide peach of mind. Did you learn anything new from my Facebook posts?  Did you become an American Saver?  Please complete this short online survey and let me know: http://bit.ly/ExSurvey. 

For more information or to comment on this blog, contact:

• deborah.killam@maine.edu

America Saves Week – Day Seven – Money Management Tips

1. A financial check-up is as important as an annual physical with your doctor.  Like a medical exam, a review of your finances can screen for potential problems, such as lack of an emergency fund or a high debt-to-income ratio. The Financial Fitness Quiz at www.rce.rutgers.edu/money/ffquiz.asp includes 20 questions about financial practices.  Low scores indicate areas for improvement. Need to save for emergencies and future goals?  Become an American Saver at http://bit.ly/gliVkL. 
2. When it comes to saving money, time is as precious a resource as money is.  Even small amounts of money, with compound interest over time, will grow to significant sums over time.  When there’s a will, there’s a way.  You don’t need a last name like “Gates” or “Buffet” to become a successful investor. Join America Saves and learn how others are reaching their personal savings goals: http://bit.ly/fHbGQy. You can too! What we think about, we bring about. 
3. Millionaires get a lot of attention with a popular television game show and best-selling books like “The Millionaire Next Door” You cannot necessarily tell a millionaire by looking at one, however.  Many people with expensive possessions have a lot of debt and many wealthy people do not own expensive items.  Living below their means is a common characteristic of millionaires. They also follow a “pay yourself first” strategy of regular saving and are goal-oriented. Want to be wealthy? Become an American Saver.  Join America Saves and start saving today: http://bit.ly/fHbGQy. 
4. Research on millionaires indicates that most grew their portfolios over time through regular savings.  The process of saving a fixed amount of money at a fixed time interval (e.g., $50 per month) is called dollar-cost averaging.  Many experts recommend saving 10% of what you earn. If saving 10% of earnings is impossible, start with less (e.g., 4%) and give your savings a raise when your income increases or when household expenses, like child care or a car loan, end. For more savings tips from America Saves e-wealth coaches, see: http://bit.ly/hSJnXY. 
5. Want to save money? Get out of debt. PowerPay creates a schedule to apply payments from paid off creditors to remaining debts, thereby saving repayment time and interest.  For example, let’s assume someone owes money to seven creditors, had been making a $50 monthly payment to Sears, and that debt is repaid.  That $50 is applied to debt owed to the remaining six creditors, usually starting with the highest interest debt first.  For further information about PowerPay, visit www.powerpay.org. To learn more about saving, visit America Saves:  http://bit.ly/fHbGQy. 
6. Need to “find” money to save? Plug your spending leaks. Add up what you’re spending on “little things” such as snacks, soda, fast food, cigarettes, lottery tickets, magazines, and more. Let’s say you can “find” $5 per day from reduced spending. That adds up to $1,825 in savings per year and even more with interest. For more savings tips, visit America Saves: http://bit.ly/fLuD29. 
7. Saving a portion of your tax refund is a good way to prepare for life’s unexpected events. When you get your tax refund this year, save at least half of it for irregular household expenses (holidays, tuition, water bills, home maintenance), emergencies, and/or future financial goals. The IRS makes saving your tax refund very easy. Simply file Form 8888 with your tax return. This form allows you to direct deposit your tax refund into up to three different accounts. For more savings tips, visit America Saves: http://bit.ly/fLuD29 and become an American Saver: http://bit.ly/gliVkL
8. Many people have a can or jar of coins stashed away. This is a great way to save money and it’s painless. Simply empty your pockets or purse at the end of the day and save your loose change. If you want to go a step further, save a dollar a day plus pocket change. At the end of a month, you’ll have about $50 in savings. When it comes time to cash in your coins, avoid machines that charge an 8% to 10% processing fee (a dime for every dollar you save!). Instead, ask your bank or credit union if they’ll count your change. Many will do this for free if you have an account with them. For more savings tips, visit the America Saves Web site: http://bit.ly/fLuD29. 
9. It’s never too late to save money so stop beating yourself up if you haven’t saved much so far. Choose to save today! The payoff will be worth it! Here’s an example. If you save $1 a day ($30 per month), you’ll have a little over $25,000 in 30 years assuming a 5% return. Bump the daily savings up to $5 ($150 monthly) and you’ll have over $125,000. For more information, visit the  Choose to Save ( www.choosetosave.org) and America Saves (http://bit.ly/fHbGQy) web sites.

For more information or to comment on this blog, contact:

• deborah.killam@maine.edu

America Saves Week – Day Six – Money Management Tips

1. With compound interest, saving just 1% more of your pay ($400 on a $40,000 income) annually can provide tens of thousands of dollars more for retirement.  If you’re 25, 35, and 45 and earn $40,000, you’d have $164,523; $66,623; and $24,436, respectively, by saving 1% more, assuming an 8% average annual return. The more time you have to save, the more money you’ll have. Become an American Saver (it’s free and motivational) at http://bit.ly/gliVkL. 
2. “Pay yourself first” is advice that we all need to take to be successful financially.  We can all set aside a few dollars each month to use for our financial goals or emergencies.  Those small amounts soon grow into larger amounts.  You’ll be surprised at how quickly a few dollars per week add up.  Save $50 a week at age 35 and you’ll have $217,645 at 65 assuming a 6% average annual return. Now that you are convinced that savings rocks, become an American Saver at http://bit.ly/gliVkL. 
3. Unexpected expenses can break a family budget.  However, a car repair, a minor health problem, and a broken appliance are all “emergencies” we can plan for.  Set aside money each month for unexpected expenses in a savings or money market account. When you establish an emergency fund, money will be there when you need it. For more savings tips, visit: http://bit.ly/fLuD29. 
4. Like a traveler who has no map, if you don’t have financial goals or a plan to achieve them, you won’t get very far.  Financial planning is very much like planning a trip.  You need to know where you want to go, when you want to arrive, how you plan to get there, and how much it will cost. Once you have determined your financial “destination,” savings will get you there. For more information about savings and the America Saves program, visit http://bit.ly/fWpOBu. 
5. Have you ever had $50 in your pocket on Monday and by Wednesday it was gone?  Can you even remember what you spent it on?  Frequently, money slips through our fingers without our notice.  If this happens to you, keep a spending log for a month to see where your money is going.  It will help you “find” money to save by uncovering seemingly inexpensive habits which add up to real money over time. As you look for money to save, join America Saves at http://bit.ly/gliVkL. 
6. Want to save money? Look at your debt. Do you buy food or clothing on credit and take months to pay the bill?  Do you pay only the minimum payment on your credit cards?  Do you have four or five credit cards and sometimes use one to pay another?  If you answered yes to any of these questions, you are using credit unwisely and it’s costing you money. Try to never purchase anything on credit that will be used up before you have paid for it. Food, clothing, and vacations are examples of items that you could be paying for long after they have been consumed.  Try to pay credit card balances in full each month rather than carrying a balance. As you reduce your debt, think savings. Join America Saves and become an American Saver at http://bit.ly/gliVkL. 
7. One relatively painless way to save is to automate your savings plan. To do this, simply have your bank or brokerage company take money directly out of your checking account or paycheck and place it into a savings or investment account. For more savings ideas, check out the advice of the America Saves program’s e-wealth coaches: http://bit.ly/hSJnXY. 
8. Do you have goals or dreams?  A dream is vague like “I want to send my child to a good college,” or “I want to be comfortable in retirement.”  A goal is specific and has dates for beginning and ending.  For example, “By the time my child is 18, I will have $20,000 in college savings.” How do you set a goal?  Write it down answering the questions who, what, when, where, and why.  Since this is YOUR goal, begin your goal statement with “I/We”.  Then, state exactly what you will do to achieve it (e.g., save $4,000 annually in a 529 plan).  Keep re-writing your goals until they are specific.  Then tell other people about them so that there are people to hold you accountable. For more savings ideas, check out America Saves e-wealth coach tips: http://bit.ly/hSJnXY. 
9. Want to save money? Set some financial goals. Goals provide motivation and a purpose for saving. The more specific a financial goal, the easier it is to determine how much savings is required.  You simply work backwards to break a large goal into smaller pieces,  For example, that $15,000 car in 5 years will require $3,000 in annual savings or about $58 per weekly paycheck ($3,000 divided by 52). Join America Saves and become an American Saver at http://bit.ly/gliVkL.

For more information or to comment on this blog, contact:

• deborah.killam@maine.edu

America Saves Week – Day Five – Money Management Tips

1. Ever hear about the Latte Factor™? Every time you don’t have a latte at a coffee shop and a donut at coffee break or don’t spend money in a soda machine, save the money you didn’t spend.  Sometimes we spend small amounts daily without even thinking.  Small things really do add up. Now that you’re motivated to save, become an American Saver at http://bit.ly/gliVkL. 
2. Here are two good savings tips. Continue Paying A Loan – If you’re about to pay off a loan, continue making the same monthly payment – to yourself!  Bank A Windfall – Whenever you receive unexpected money – an inheritance, bingo winnings, tax refunds, retroactive pay, etc. – put at least part of it into savings. Become an American Saver at http://bit.ly/gliVkL. 
3. An easy way to see how long it will take for your savings to double is called the “Rule of 72.”  The formula doing a calculation is: 72 divided by the interest rate equals the number of years it will take for your money to double.  For example, at an average annual return of 7%, a sum of money will double in about 10 years.  Learn more about saving and investing: http://bit.ly/fWpOBu. 
4. Serve smaller food portions.  Not only does this save money, but it is also better for your health.  Currently about 31% of Americans are obese (30 or more pounds over a healthy weight) and about 65% of Americans are either obese or overweight (10 or more pounds over a healthy weight).  Save the money you save on food costs. Become an American Saver at http://bit.ly/gliVkL. 
5. Want some great financial advice from some of the nation’s leading financial experts…for free? Seriously, this service really exists and nobody is trying to sell you anything. The America Saves program posts monthly messages from e-wealth coaches about topics related to savings and personal finance. To view what they have to say, see: http://bit.ly/hSJnXY. 
6. Want to get serious about saving? Follow this four-step process: 1. calculate how much money you need for retirement or other goals (type “financial calculator” into an Internet search engine), 2. plan how to accumulate the money you need, 3. act to implement your plan and save money, and 4. reassess your financial needs and the progress of your plan every year. For more information about saving, visit the America Saves Web site at http://bit.ly/fHbGQy. 
7. Make savings an “expense” in your spending plan (budget), just like rent, utility bills, or a car payment.  Automate savings through a credit union or retirement savings plan or through monthly deductions from a bank account to purchase U.S. savings bonds or mutual fund shares. For more information about saving, visit the America Saves Web site at http://bit.ly/fHbGQy. 
8. A tax-deferred employer plan (e.g., 401(k), 403(b), etc.) is a good place to save. Contributions are deductible on federal income tax returns (e.g., a worker with a $32,000 salary who makes a $2,000 contribution only pays federal tax on $30,000).  There is also tax-deferred growth of principal and investment earnings and savings is deducted from a worker’s paycheck, before it can be spent. Another advantage is employer matching at many workplaces. This is free money that shouldn’t be passed up. For more saving information, visit the America Saves Web site at http://bit.ly/fHbGQy. 
9. If you’re saving in a tax-deferred employer retirement plan, try to save more (e.g., increase from 2% to 4% of pay).  The best time to “kick it up a notch” is when you receive a raise or a household expense (e.g., car loan, child care) ends.  For more savings information, visit http://bit.ly/fWpOBu.

For more information or to comment on this blog, contact:

• deborah.killam@maine.edu