Students especially if they work don't have a lot of time and if you work more to get more money often your financial aid is cut so if you can't work more how do you get more money?
Well, you could take a page from high school and babysit or house sit, that money would not go on your FAFSA. However, you are suppose to claim that on your taxes and therefore on your FAFSA (frugalstudents does not say to cheat on your taxes, mostly cause the IRS is scary!). So what can you do?
Most students have very little time and want to have fun so many of the tricks on frugal blogs don't work, either you live at home and they are not applicable or you live in the dorm and you are not allowed to try the tricks (stockpiling being one trick) or again they are not applicable. So again, what can you do?
Well, you could buy gift cards for places you know you will spend, like movie theaters for great movies like Iron Man 2 (I am going to see it this weekend) and then go see the movie during the matinee. Lets do the math, shall we? Say you and your SO (boyfriend/girlfriend) want to go see Iron Man and your are in buffalo, NY. You could go buy the tickets for Friday night at 10.00 a person. So just to see the move you have spent $20 not even counting popcorn, candy or a drink.
So how could you do this and pay less? Well first you can go to plastic jungle and buy a gift card for Regal theaters for 10% off, then you go to the theater Saturday afternoon instead and only pay $16 for the two ticket ($8/each) but since you got the gift card for 10% off, it is only $14.40. You can use the rest of that money ($5.60) to buy popcorn.
Same fun date and by being frugal (not cheap) you get even more than if you were not and honestly all it takes is 5 minutes and a little thinking ahead.
1 Million Dollars
Wednesday, May 19, 2010
Friday, May 14, 2010
Emergency Funds
Everyone should have an emergency fund (EF) but most financial advice is for you to save three to six months of your salary, how does that work with students? Honestly it does not work. For a young student who is living on loans and side income the best thing is to have a small EF and ways to access money. For example, if you are receive subsidized loans for school but have $5000 each semester of unsubsidized loans available to you, figure out how long it will be till you would able to access them and what bills you would need to pay in that time.
When I was an undergraduate I had a small subsidized loan as well work study, a waitress job and access to another $3000 each semester from unsubsidized loans. My school also would loan (in a emergency) an additional $500 to be repaid in a month, however it would take about two or three weeks to get the money. So my emergency plan was put what ever problem on the credit card (fixed rate of 9.9% from my credit union), apply for the $500 no interest loan from school and then apply for the unsubsidized loan of 6.8% (it took about two months because the loans went to the school and then the school cashed the check out to me).
This allowed me to know that if I lost my waitress job I had a plan which is in sometimes better than just cash. I did however put away as much as I could to use in case of a smaller emergency, such as car repair, and rarely had to use it.
Next article will go into where to put that extra cash you can manage to squirrel away.
When I was an undergraduate I had a small subsidized loan as well work study, a waitress job and access to another $3000 each semester from unsubsidized loans. My school also would loan (in a emergency) an additional $500 to be repaid in a month, however it would take about two or three weeks to get the money. So my emergency plan was put what ever problem on the credit card (fixed rate of 9.9% from my credit union), apply for the $500 no interest loan from school and then apply for the unsubsidized loan of 6.8% (it took about two months because the loans went to the school and then the school cashed the check out to me).
This allowed me to know that if I lost my waitress job I had a plan which is in sometimes better than just cash. I did however put away as much as I could to use in case of a smaller emergency, such as car repair, and rarely had to use it.
Next article will go into where to put that extra cash you can manage to squirrel away.
Monday, May 3, 2010
Summer is Coming!!!!!!
Students are gearing up for finals and then either a break or graduation! Congrats to the grads and have fun to those who will be on break!
Grads should be aware that their student loans start repayment in about 6 month even if the company does not contact you.
But enough of the depressing stuff, it is almost summer. Summer is one of the best times for frugal fun. Grilling (if you have a grill) with friends in the backyard, picnics with you SO, farmer markets and hiking are all fun things to do over the summer (and they don't cost very much money).
Also fruits and vegetables are starting to be on sale. I got a bag of red potatoes (5lbs) for 2.99, two artichokes for $1.00 and two corns for .25 each. I made mash potatoes and had a great dinner last night. For dinner last night, since I only used a pound of potatoes, I spent $2.50, which includes the amount of milk, butter and spices used to cook with. So dinner, which I still have left over potatoes cost me $1.25/person. Cheap! And it was healthy.
Also I have been getting the ground ready for its first garden. I have a basil plant that I will need to move to a bigger planter and I bought a few raspberry and blackberry plants online that should be coming soon (there was a sale, that made the online price much lower than home depot), so that is taking up time and giving me some exercise. But I am enjoying it and next year we will have lots of fruit.
My advice for the summer, find free or cheap things to do outside and enjoy yourself. So get on your tennis shoes and get out there. Have fun and eat lots of fruits and vegetables, your wallet and your body will thank you.
Grads should be aware that their student loans start repayment in about 6 month even if the company does not contact you.
But enough of the depressing stuff, it is almost summer. Summer is one of the best times for frugal fun. Grilling (if you have a grill) with friends in the backyard, picnics with you SO, farmer markets and hiking are all fun things to do over the summer (and they don't cost very much money).
Also fruits and vegetables are starting to be on sale. I got a bag of red potatoes (5lbs) for 2.99, two artichokes for $1.00 and two corns for .25 each. I made mash potatoes and had a great dinner last night. For dinner last night, since I only used a pound of potatoes, I spent $2.50, which includes the amount of milk, butter and spices used to cook with. So dinner, which I still have left over potatoes cost me $1.25/person. Cheap! And it was healthy.
Also I have been getting the ground ready for its first garden. I have a basil plant that I will need to move to a bigger planter and I bought a few raspberry and blackberry plants online that should be coming soon (there was a sale, that made the online price much lower than home depot), so that is taking up time and giving me some exercise. But I am enjoying it and next year we will have lots of fruit.
My advice for the summer, find free or cheap things to do outside and enjoy yourself. So get on your tennis shoes and get out there. Have fun and eat lots of fruits and vegetables, your wallet and your body will thank you.
Friday, April 23, 2010
5 minute mom UBP after party
This year was my first year participating in the UBP from 5 minute for mom and I learned a lot (and ticked off google, they apparently do not like blog parties).
I was able to read of ton of financial blogs that I would not have found and now have many more people checking out my blog as well. I will be participating in the blog party next year, I hope. I now check a few more blogs on a regular basis, for example: 5 minutes for mom because of how they create a blogger community; frugally fabulous mom for all of her deal especially for children (I am a planner and we plan to have children soon after the wedding which is in 2011); and of course A Maui blog for all the information about Maui to help me plan my honeymoon.
This blog party has been so great for me, I have gotten great new contacts, a new information for both my present and future in all aspects of my life, so thanks to the great bloggers at 5 minutes for mom!
I was able to read of ton of financial blogs that I would not have found and now have many more people checking out my blog as well. I will be participating in the blog party next year, I hope. I now check a few more blogs on a regular basis, for example: 5 minutes for mom because of how they create a blogger community; frugally fabulous mom for all of her deal especially for children (I am a planner and we plan to have children soon after the wedding which is in 2011); and of course A Maui blog for all the information about Maui to help me plan my honeymoon.
This blog party has been so great for me, I have gotten great new contacts, a new information for both my present and future in all aspects of my life, so thanks to the great bloggers at 5 minutes for mom!
Thursday, April 15, 2010
Investing/ Retirement Saving Part 3
Taxable accounts are the third type of account you can use to save for retirement. Taxable accounts are basically everything not mentioned in that two articles. Bonds, stock, saving accounts, all of it can be a taxable account.
Most often it is not recommended to save in a taxable account unless you are maxing out your other options or for non-retirement saving like an emergency fund, down payment for a house, things like that. However those are all goals that are short term which means you should be saving in savings account or CD account. When would you start putting money in bond or stocks/mutual funds in taxable accounts?
Never hold bond (except government bonds) in a taxable account, only stocks/mutual funds. Government bonds have tax savings all their own so have some of those outside your tax deferred or tax advantage account is fine but if you hold a mutual fund or stock for more than a year, taxes when you sell it are lower than any other type of income tax. For example, the max right now you can pay on a stock profit (if you have held it for a year) is 15% vs 30% or so. However corporate bonds do not get that discount are taxed just like everything else so but corporate bonds in the other two types of accounts and put mutual fund/stock in a taxable account.
To do this you can go to the same companies you used for your IRA, T Rowe Price, Vanguard, or Fidelity and they can help you set an account up. If you want to buy individual stocks, not mutual funds you can still do it there but there are better options but you don't want to start there yet.
So basically when you are earning enough to max out all the tax deferred and tax advantage accounts you have start dropping a little bit in taxable accounts. When you retire it will allow you to live better on less taxes and it also gives you another emergency fund.
Most often it is not recommended to save in a taxable account unless you are maxing out your other options or for non-retirement saving like an emergency fund, down payment for a house, things like that. However those are all goals that are short term which means you should be saving in savings account or CD account. When would you start putting money in bond or stocks/mutual funds in taxable accounts?
Never hold bond (except government bonds) in a taxable account, only stocks/mutual funds. Government bonds have tax savings all their own so have some of those outside your tax deferred or tax advantage account is fine but if you hold a mutual fund or stock for more than a year, taxes when you sell it are lower than any other type of income tax. For example, the max right now you can pay on a stock profit (if you have held it for a year) is 15% vs 30% or so. However corporate bonds do not get that discount are taxed just like everything else so but corporate bonds in the other two types of accounts and put mutual fund/stock in a taxable account.
To do this you can go to the same companies you used for your IRA, T Rowe Price, Vanguard, or Fidelity and they can help you set an account up. If you want to buy individual stocks, not mutual funds you can still do it there but there are better options but you don't want to start there yet.
So basically when you are earning enough to max out all the tax deferred and tax advantage accounts you have start dropping a little bit in taxable accounts. When you retire it will allow you to live better on less taxes and it also gives you another emergency fund.
Thursday, April 8, 2010
Post for ultimate blog party 2010
The ultimate blog party is mostly for moms but I hope I can join given that a lot of what can be learned here is for college student AND their parents. So lets join in and see what we can learn! At the end of the week I will be posting my favorite blogs and why.
My blog is about saving money for the young adult, so many blogs focus on middle age adults but the sooner we learn the money money will will save and have.
So I hope everyone likes my site and that they find other sites to enjoy as well.
There a ton of prizes to win as well, my favorites are US7- Tupperware, US 30- Nesting pillow, US 32- Target gift card and US 39- A 2 night stay at the Hilton Garden Inn (I could use that for my wedding night.
My blog is about saving money for the young adult, so many blogs focus on middle age adults but the sooner we learn the money money will will save and have.
So I hope everyone likes my site and that they find other sites to enjoy as well.
There a ton of prizes to win as well, my favorites are US7- Tupperware, US 30- Nesting pillow, US 32- Target gift card and US 39- A 2 night stay at the Hilton Garden Inn (I could use that for my wedding night.
Wednesday, April 7, 2010
Investing/ Retirement Saving Part 2
The next type of retirement vehicles is the Roth. The Roth comes in two varieties, the 401k and IRA. They have the same max as their traditional counterparts, $16,500 and $5000 respectively. They also allow extra to be put in them after age 50, $5000 and $1000 respectively.
The biggest reason to put your money into a Roth IRA or 401k is that, because you pay taxes on the money you put in, you do not pay taxes when you taxes when you take it out after 59.5 years. This means that a Roth is the best place to put your money as a young person. Your income will go up as you age, as you get raises and promotions, therefore when you start out you are paying the least in taxes. However most companies do not offer a Roth 401k, though they are becoming more popular. Therefore most people should focus on maxing out their Roth IRA as soon as they can. You can open a Roth IRA at the same places as a traditional IRA.
Another advantage of the Roth IRA is that after 5 years of opening the account, you can remove the money you have put in without a penalty. For a 401k, traditional or Roth and a traditional IRA, you would pay a 10% penalty plus the taxes. The exemption on the penalty is only for the money you put in, not the earnings/interest. This can be helpful also when you want to buy a house. For your first house you can take up to $10,000 out a IRA, traditional or Roth for the down payment, but for a Roth you can take out the up to $10,000 of the interest/earning plus all the money you put in. It is a great way to not pay taxes on the interest on the money you are saving for retirement.
I did it that way, I put 10% away in my 401k when I worked as a student and saved another $7000 in an IRA for my first house. I was lucky though, we moved to a very cheap area for my fiance's graduated school and our duplex only cost $60550, so my IRA covered most of our $12,110 down payment.
You can also use the Roth IRA as a secondary emergency fund after it has been open for five years or more. However money in your retirement accounts normally cannot be gone after so think long and hard before cashing out your retirement for bills now.
The next article will be about how to invest/save in taxable accounts and why you would save there as well as the tax differed and tax advantage accounts.
The biggest reason to put your money into a Roth IRA or 401k is that, because you pay taxes on the money you put in, you do not pay taxes when you taxes when you take it out after 59.5 years. This means that a Roth is the best place to put your money as a young person. Your income will go up as you age, as you get raises and promotions, therefore when you start out you are paying the least in taxes. However most companies do not offer a Roth 401k, though they are becoming more popular. Therefore most people should focus on maxing out their Roth IRA as soon as they can. You can open a Roth IRA at the same places as a traditional IRA.
Another advantage of the Roth IRA is that after 5 years of opening the account, you can remove the money you have put in without a penalty. For a 401k, traditional or Roth and a traditional IRA, you would pay a 10% penalty plus the taxes. The exemption on the penalty is only for the money you put in, not the earnings/interest. This can be helpful also when you want to buy a house. For your first house you can take up to $10,000 out a IRA, traditional or Roth for the down payment, but for a Roth you can take out the up to $10,000 of the interest/earning plus all the money you put in. It is a great way to not pay taxes on the interest on the money you are saving for retirement.
I did it that way, I put 10% away in my 401k when I worked as a student and saved another $7000 in an IRA for my first house. I was lucky though, we moved to a very cheap area for my fiance's graduated school and our duplex only cost $60550, so my IRA covered most of our $12,110 down payment.
You can also use the Roth IRA as a secondary emergency fund after it has been open for five years or more. However money in your retirement accounts normally cannot be gone after so think long and hard before cashing out your retirement for bills now.
The next article will be about how to invest/save in taxable accounts and why you would save there as well as the tax differed and tax advantage accounts.
Subscribe to:
Posts (Atom)