52 Week Money Challenge

Hello friends,

image via pinterest

I think a big part of being healthy and well is making sure that our finances are in order. Building a savings account is not always the easiest thing to do, but with discipline and commitment it can be done. I have found the 52 Week Money Challenge to work very well in helping me and others save a little each week.

Keep in mind, this is the 16th week. It's not too late.

This is how it works:

Save $1 the first week. The second week, $2; the third week, $3. Increase the amount by $1 each week. By the end of 52 weeks, you will have saved $1,378!

I have friends who double their weekly savings each week. There is no wrong or right way to do this. The idea is to get in the habit of saving. 

It's not too late to join. If you're already participating in the 52 week challenge, let me know how you're making out.


Take care,

Does Money buy Happiness?

 'Your success and happiness lie in you' 

-Helen Keller

You often hear the phrase that money doesn't buy happiness. Really? I think otherwise. Think about it. We get happy when we receive money from family members. On the other hand, we get upset when we lose money. People who can't afford basic necessities, such as food, clothing, shelter are often unhappy. Even the inability to afford wants not needs make us sad, depressed...UNHAPPY.

clipartguide.com

Now money can't and should not be the source of all your happiness and your joy in life. That's just setting up yourself for disaster. There's more to life than money. This concept plays out in daily life all the time. For instance, money didn't save Steve Jobs from death and the recession right now is a proof of this. Hundreds Millions of people have lost their homes and jobs right now, which is definitely a source of unhappiness right now, due mainly to financial loss.

Long gone are the days of bartering. This is why we receive financial compensation for the time that we put in at work. We go to school so that we can earn more money in our fields. We need money for everything, such as security and health. To be financially secure is a dream for many. Most Americans are 1-2 paychecks away from homelessness. So, please don't tell me that money doesn't buy happiness. Money provides opportunity and choice that then leads to freedom and thus happiness.

Money ($) buys opportunity/choice

Opportunity = freedom

Freedom = Happiness

What do you think? Does money buy happiness? Leave your comments below.

Money Tip #2: Become a member of a Federal Credit Union

source: www.ncua.gov

Once again, I have a great tip on saving money or building wealth. I am all about Working to build financial freedom. I know too many people who are in debt and cannot ever seem to save a few dollars for several reasons. This tip will help you, yes YOU build some wealth. There are several reasons why Federal Credit Unions are a better alternative than your average bank. Before you think that federal credit unions are one step below your average bank, they are not. Federal Credit Unions are insured by the National Credit Union Association (NCUA), which is backed by the U.S. government. The NCUA seal is identical to FDIC, which insures banks in the United States. In fact the NCUA and FDIC are identical in that they both protect your money, provided you stay within the coverage limits of $250,000 (www.ncua.gov). 

Here is why you should consider a Federal Credit Union over a bank:

1. Credit Unions (CU) offer higher interest rates on your savings account. This was one of the biggest reasons I opened an account at a CU.  I was earning 0.01% on my savings account at my bank, which was practically nothing, I mean zero. I switched over to a Federal Credit Union and I am now earning between 0.125 – 0.25% APY. This makes a big difference from the lousy 0.01% that I was getting. The reason that Credit Unions offer higher interest rates and smaller fees (another reason you should consider a CU) is that they are not-for-profit. Most banks are not.
2. By opening an account at a credit union, you become a member and you are considered a part owner of the credit Union. A great perk is that since Credit Unions are not-for-profit, any profit that they do earn goes to you (the members) in the form of dividends. Nice right!
3. Credit Unions offer lower rates. They offer lower interest rates on credit cards, loans. In fact, credit unions are more likely to offer loans to small business owners in the community than your larger commercial banks.
4. Credit Unions have great relationships with their members in the sense that they provide additional financial services to their members. For instance, the credit union that I joined, does free-tax preparation for its members and provides classes on foreclosure prevention, financial guidance and home-buyer education and counseling. Typically, such services are not provided at large, commercial banks. 

By the way, anyone can join a credit union, all you need to do is live, worship, work or go to school in the area. When searching for the right credit union for you, this site can help.

For more information on Federal Credit Unions, refer here.  

 

I hope this helps, 

Lilia :o)

Money Tip: Make loan payments during Grace period

A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life ---Suze Orman

Hello lovely people, 

I just wanted to share a great money tip. If you know me, you that I am all about saving MONEY. Don't get me wrong, I love to spend on nice things, but saving money for when I will need it later on in the near/distant future feels safe. I'm all about delayed gratification. Just knowing that I have financial security is a wonderful feeling. Its like having job security or food security and the other securities out there. Not knowing if you will lose your job position today or tomorrow or not knowing where your next meal will come from is one of the worse feelings in the world. 

The TIP: We all have loans from an undergraduate institution, such as a Perkins Loan or a Stafford Subsidized loan. Therefore, repayment does not begin until you are completely out of school (with a 6 months grace period). My tip don't wait until the first month of payment before you begin payments. For example, I have a Perkins loan of $2,300 (not bad right?). Over the past 3 months I have being making $50 monthly payments on this loan (Sometimes more if I can). Every time I make a payment, the principal amount of this loan decreases each time. If I continue on with this, I can completely pay off this loan WITHOUT paying any interest, which means Mo' Money in my pocket. Nice Right?!

So, if you have a little to spare each month, put it towards small college loans, because when time actually comes to paying that loan, it won't be that much (if any). No reason to be paying uncle Sam all this extra money; money that you can use on whatever you like.

Hope this helps, 

Lilia