The Best Way to Invest For Your Retirement

From my perspective, there are three types of people in this world. First, there are those that invest very simply and carefully, typically choosing investments that have steady long-term growth and have very low fees. Second, there are those that are studying the market each and every day. They often buy and sell shares of stock in order to avoid risk in the short term, which will in turn allow them to grow wealth for the long term. Finally, there are those that have always thought of investing, but have just never pulled the trigger. Either they do not have the funds to invest (by nature or by poor spending choices), or they just assume that they have plenty of time to invest later when they reach their 40’s and 50’s.


So what mentality is best? How should you be investing your money? I’m glad you asked. Let’s dig in.

The Obvious Wrong Choice

If you invest absolutely no money into the market, then your obvious return will also be nothing. Chances are, if you are going to wait until you are 40 or 50 years old to invest, then you have simply missed the boat. Sure, you could amass a couple hundred thousand dollars (which still will likely not allow you to retire) by dumping large amounts of money into the market, but if you would have started small when you were in your 20’s, the same amount invested could have grown to a value of over a million dollars. Postponing your investment is the obvious wrong choice.


Trading Frequently in the Market

I have a friend that often brags about a certain stock of his that has soared in the recent weeks. In total, he claims to have beaten the market considerably last year (which I later found out to mean a 22% gain), but he either did not check the yearly earnings of the major indexes, or he had such an arrogance about him that he was just blind to his lack of earnings. My investments sat in a few different index funds and earned 29% over that same period of time (and required none of my attention).


His story is quite similar to the majority of active traders. By jumping in and out of the market not only are they increasing their risk by trading in the short term, but they are increasing their expenses due to reoccurring transaction fees. 99% of these traders perform at a rate below the average market growth.


Get Rich Slowly
The absolute best way to invest for your retirement is to get rich slowly. Invest early, avoid senseless fees, and stay consistent. Over time, your money will grow at a greater and greater rate (thanks to compounded earnings). In addition to this, be sure to take advantage of company matches and bonus programs that will contribute additional funds to your 401(k). By continually adding to your pot of retirement funds and letting those

earnings grow year after year, your small contribution of $150 a month for 45 years will likely turn into $1.4 million dollars! Invest early and carefully and it will pay enormously.


Are you ready to start investing?

4 Tips to Save Your Business Money

When it comes to running a business, nothing is more important than the bottom line. Knowing how to reduce expenses can mean the difference between generating profit and operating at a loss. Don’t know where to start when it comes to money-saving tactics? Consider the following tips:

Green Technology
Going green isn’t just good for the planet – your business’s turnover may also benefit. Whether they’re motivated by genuine concern for the environment or a financial incentive, more organisations than ever are moving towards green technology. Making the transition to more environmentally friendly processes might involve some expenses at first. However, the money you’re likely to save in the long run will often make any initial costs worthwhile.

Outsourcing
Trying to micromanage every aspect of your business can be exhausting and expensive. By outsourcing a service or two, you’ll have more energy to ensure continual productivity, rather than getting distracted by smaller tasks.

For instance, if your business provides clients with printed materials, save time and money by using a professional printing company like The Print Group. Apart from freeing up valuable resources, working with a printing service will allow you to offer clients a more professional looking product.

Inexpensive Advertising
These days, you don’t need a huge marketing budget to get the word out about your business. If you can’t afford traditional forms of advertising such as print or TV ads, there are plenty of cheaper options out there. Rather than paying tons of cash for publicity, you can create a corporate Facebook page, hand out flyers, or sponsor local sports teams. By making the most of low-cost marketing opportunities, your business’s reputation will gradually grow. You can find a lot of market tips here.

Buy Second-Hand
Unless you need brand new equipment for safety reasons, buying second-hand is one of the easiest ways to cut down on business-related costs. Whether you find what you need in second-hand stores, newspaper classifieds or on eBay, used office furniture and computers often cost half of what they would if they were brand new.

These are just some of the ways you can save your business money. By giving these tips a try and identifying as many opportunities as you can to reduce costs, you’ll be amazed at how much money you save.

Invest in Your 401k, Roth IRA, and HAS

Investing can sometimes be confusing can’t it? Heck, even the title of this post can have some people scrambling to get out of dodge. The majority of people do not understand investment terms and would rather not take the initial step toward investing because they simply don’t know what to do, and they don’t want to make any big mistakes. I know it can be quite intimidating, but by knowing the simple facts, you can do quite well with your investments. 

First Invest in Your Company-Matched 401k 

Does your company match your 401k contributions? I believe that many companies still do, and if this is the case for you, then you should invest up to the amount that is matched. In other words, if your company will match 100% of your contributions up to 3%, this means that if you put 3% of your paycheck into your 401k, then you company will put the exact same amount into your 401k as well. This is an amazing benefit and should be maximized. 

So what funds should you choose for your investment? For the beginner, I keep this very simple. First, look at the historical returns of each fund. If they have consistently earned 10% or more in each year over the last 10+ years, then they are doing quite well – choose them to put a portion of your funds. Second, choose only those funds that have a low expense percent (preferably under 0.3%). By choosing funds with low expenses, you will ensure that you will keep more of your money in the long-run. Finally, be sure to divide your money among five or more different funds to stay diversified. 

Second, Invest in Your HSA Fund 

You might think that you should next invest your money into a Roth IRA, but it actually makes more sense to put your funds into an HSA fund. For those of you that have not heard of this term, it is actually a health savings account for individuals that are on a high-deductible insurance plan. Since this fund will roll your money over each year, is completely tax free, and allows you to invest within it, it is actually a much better deal than investing in your Roth IRA. Put the maximum amount into your HSA account each year and let the funds grow. Either you will use this money on medical expenses and pay no tax, or you can remove it without penalty after the age of 65. 

Third, Invest in Your Roth IRA 

A Roth IRA is an excellent investment, don’t get me wrong. It just so happens that a company-matched 401k and an HSA fund will earn you more in the long run (due to the contributions and lower taxes). But, if you put in enough money to get the full match from your employer and to max out your HSA account, then you should begin investing in a Roth IRA. 

The Roth IRA is an amazing investment option because of its tax advantages. Your contributions will be made with after-tax money before they are put into the fund, but the beautiful part is that this money will never be taxed again, even when you take it out of the fund at your retirement. So, you simply pay the tax early, allow your investment to grow for years and years, and then you never pay the tax on that stack of money when you take it out. It is a wonderful thing and should be taken advantage of. 

So what do you think? Are you ready to invest? 

Save money with Groupon Goods #Sponsored

This is a sponsored post. All opinions are mine.

Are you aspiring to save money? One aspect of becoming 'rich' is know when and how to save money. I have shared numerous ways I have made and saved money which has enabled me to have a lifestyle I love. One thing I have done for years is shopped with Groupon Goods.

For gifts, things for the home, jewellery and other bits and pieces I have needed, I have checked out sites such as Groupon Goods to see what they have and how much I can save. In order to save money, I have a few rules:

1.) Never pay full price 
This is a rule I follow so much that I overheard a conversation with my kids about it. My older daughter said to her little sister "Never pay full price. Wait for it to go on sale, everything always goes on sale!" Her sister is of the opinion she'll be rich and doesn't care what she pays. I have my work cut out teaching her.

2.) Shop around
It is incredibly easy to compare prices online and shop around without needing to spend hours in stores now. Type in what you are looking for, search on sites like Groupon Goods and look for either sales or coupons for the items you want.

3.) Don't buy stuff you don't need! 
One thing that is easy to do with sales and greatly reduced items is to buy things you don't need. Keep your budget in mind and what you actually need. If you spend $100 on something you didn't need, even if it was 75% off, you have spent $100 that didn't need to be spent!

How do you save money?

7 Important Considerations When Looking For a New Job

I’m sure you have heard the expression, “The grass is always greener on the other side.” Well, this saying definitely holds true for your career as well. As workers mull through the day-to-day grind of work, they begin to wonder if there is anything else for them at another company. Most times, there are opportunities elsewhere, but how do you know if you should take them or not? What types of things should you consider? Here is a quick list to help you make the best decision. 

1) Living Costs – If your potential new job would mean relocation, then you must consider the living costs of your new area. I once had a friend who moved from the cheap Midwest and took a job that seemed to pay a ton of money in California. As it turns out, Cali is expensive (as most of us know – apparently he didn’t) and he probably would have earned more money had he stayed in the Midwest and took a lower paying job! 

2) Work Hours – How many hours are you working in your current job? If you are a salaried employee but do not work much more than 40 hours per week, then consider yourself fortunate. Your next job will likely not be so relaxed and will have you working at least 50, if not 60 hours per week! 

3) Work Atmosphere – Do you like the group of people you work with? This makes a huge difference since you spend at least 8 hours a day at the workplace. If, when you interview with another company, you get a bad feel for the other employees, then you might just want to turn down that job. Otherwise, you may soon be looking for the next job. 

4) Insurance Costs – You might not think about it right away, but insurance costs can be a huge factor if you’re thinking about switching jobs. If you only have to pay $20 per paycheck now but will have to pay $150 per paycheck at the new company, you will definitely notice a reduction in pay! 

5) The 401k Match – Do you currently contribute to your 401k (if not, what are you waiting for?!)? If your company contributes 10% (through matches, bonuses, and other contributions) and the new company would only pay 3%, then this might mean a difference of a million bucks in 30 years. Don’t take your 401k match for granted. 

6) Other Benefits – There are some companies that promote health and wellness, as well as being green. They will reimburse you some money if you buy a bicycle or a fuel-efficient car, and will often pay you money for participating in local runs. If your current company pays out quite a few of these benefits, then be cautious about moving to that new company. 

7) Salary – Of course, if you are going to switch jobs, you should also look at your new salary. You have to factor in living costs when thinking about salary offers and whether you'll break even with your income. Some industries pay more than others depending on demand, with tech and computer fields, for example, raking in 6-figure salaries as with the average salary for a software engineer. You'll still have to consider other factors still.It should definitely not pay out less money (unless the benefits and other factors above are amazing), but it should be enough to get you thinking about making that transition. This would typically mean paying you 10-20% more than you currently earn. 

So what do you think? Is your next job worth it? 

3 tips for cheap travel

We all love to travel don’t we? At various times throughout the year, we might get an opportunity to go somewhere and experience something new. The only problem is, we often spend thousands of dollars for these experiences and can therefore only afford to get out and take one or two vacations a year. But, what if your vacations only cost you $800? Would you go on more trips? What if you only had to spend $400? Chances are that by reducing the price of each vacation considerably, many of us would find ourselves exploring new things more often! So, let’s figure out how to keep the expenses down and the experiences up!

Image by Travis Longmore

1) Fuel Efficiency and Camping
When you come back from your vacations, what is that people typically ask you? On a regular basis you will hear, “How was it? What did you see? What was your favorite part?” These are all questions about your experiences, not about your hotel room. One of the largest expenses of any vacation is finding a place to sleep, which can often cost over $100 per night! That’s simply outrageous! What if your lodging expenses could be cut down to $5 a night? It can be done – all you need is a tent.
I know sleeping in a tent doesn’t sound all that glorious, but it really does limit the cost of your vacation. Take a week-long vacation in a hotel and shell out $700. Spend that same amount of time in a campground and spend only $35. This is a HUGE difference.

Another great money saver is your car. Instead of driving your massive SUV that sucks gas, pack a little less and take your fuel-efficient car. You will get better gas mileage and will also experience the joy of packing a little lighter. This will save you about half of your typical fuel costs.

2) Have to Fly? Find Cheap Airfare
Are you going somewhere where you would really rather fly (because it’s not all that fun to drive 1,500 miles, and driving over oceans really isn’t all that possible)? Instead of just choosing a ticket and hopping on a plane, you might want to figure out how to find a plane ticket for much cheaper.
Here are some quick tips for you to save some money:
* Fly the red-eye on a weekday (or on Saturday)
* Purchase your ticket 3 weeks before you want to travel
* Fly out of smaller, low cost airports
* Check with discount airlines and purchase from them directly
* Pack light, baggage is expensive

3) Couch Surfing
Have you ever heard of couch surfing? If you are travelling alone and don’t mind crashing on someone’s couch for a few nights, then this might be for you. There is a website out there where you can contact an individual that lives in the place where you are headed, and will allow you to sleep on their couch for nothing. It is a little strange, and does obviously come with some risks, but if you think you can handle it, there is absolutely nothing cheaper than free, especially when you’re talking about lodging.

Are you ready to travel for cheap? Which tips do you think you will use?