The current stock market has become too volatile and risky for your money. The Certificate of Deposit (CD) rates are too low to lock up your money for a long period of time. If you to avoid risk and still maintain flexibility in your money, the best thing to do right now is to grow your money in a safe financial investment vehicle, like a high-yield savings account. Below are the top ten high yield savings accounts. (more…)
Money Savings
7 Tips to Accomplish New Year Resolutions
Happy new year everyone!
Every year, the first thing we do is talk about what we want for the coming year. We love to make New Year resolutions!! We talk about what want to do and accomplish. We have all these grand ideas in January. The start of a new year is like a clean whiteboard that allows us to start from scratch and make new drawings on the board, a representation for our life.
But what happens to all these ideas down the year? Often, they are either forgotten or faded out in our minds. Come April or May, we become too sick or tired of the resolutions that were made a few months ago. By July or August, we may not even remember a word that was said in January. This seems to happen year after year. Need proof? Ask your friends, your schoolmates, your colleagues, your family, or even yourself.
Fortunately, for you, this does not have to happen again. You will set better goals for yourself and find the energy to work towards them as if every month is January again. (more…)
How I Cut Down On Food Expenses
I eat out frequently and I have noticed that I have spent a lot of money on food. In 2008, I spent more than $8,300 on food-related items (including drinks and dining out), and this is only for one person. I thought that I should cut down on my food expenses. I went to the supermarket and went food shopping. I came home with many bags of groceries. I prepared sandwiches at home and brought them to work over the next 10 work days.
In the morning at work, I usually buy breakfast from a deli and would pay $3 for an egg-and-meat sandwich. Now, I could prepare the same sandwich at home for a fraction of the cost.
In the afternoon, I would buy lunch in different food places and spend around $10 for a meal. Now, I could prepare a sandwich that would cost much less.
My Grocery Bill from Pathmark
My Bags of Grocery
My fridge stocked up with grocery
Bread for My Sandwiches
A sandwich I prepare for work
My Breakfast / Lunch Savings for 10 Days
Average Cost for Breakfast: $3
Average Cost for Lunch: $10
10 Days’ Cost for Breakfast: 10 days x $3 / day = $30
10 Days’ Cost for Lunch: 10 days x $10 / day = $100
10 Days Total Cost: $130
Cost of Groceries: $55.85
Net Savings for 10 Days = $74.15
Long Term Savings
The savings will add up over the long term. If I can save $74.15 in 10 days, I can save $741.50 in 100 days. And in one year, I can save approximately $2,706.
I have done this savings only for breakfast and lunch. If I decide to cook my own dinner, I could extend my savings even further.
My Statement
The brown bag lunch concept has worked out pretty well in terms of money savings. Many of my coworkers bring lunch to work on a daily basis and they have saved a significant amount of money over the years. But when I asked several people why they bring lunch to work, I learned that the main reason is not just to save money. Surprisingly, the primary reason to brown bag lunch is because lunch from home is much more healthy than lunch from “outside.” In addition to eating healthy, they also happen to save money, thus killing two birds with one stone.
The only downside to this brown bag lunch concept is that I get tired of eating the same sandwiches after a while. But this is mainly because I have limited cooking skills. Once I become more creative in making better lunches, I believe this brown bag concept will work out well in the long term. I can see myself preparing and brown bagging tastier meals which will be beneficial to my health, and at the same time, save money, which will be beneficial to my wealth.
10 High-Yield Savings Accounts 2009
In this economy, we want to protect our money but at the same time, we want to our money to work for us. Stocks and mutual funds historically have the best returns, however since the credit crisis, the market has seen some extreme volatility and there are high risks in playing with equities and commodities in this uncertain economy.
One of the best alternatives for the risk-adverse is to store the money in a high-yield savings account. This high-yield savings account can also be used to park our emergency funds, because the money is liquid or easily accessible. The money sits in a safe account, where the principal amount is protected and earns a high-yield interest rate.
The national average interest yield is at a measly rate of 0.42% APY. We want to earn the most interest without a trade-off for risk. If we can find savings accounts with at least 600% or more than the national average interest yield, and our initial deposit will still be insured by FDIC, it would be wise to choose the higher interest yield accounts. Below are 10 savings accounts with some of the highest Annual Percentage Yields (APY).
The current National Average interest yield is 0.42% APY according to Bankrate.com.
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High-Yield Savings Account #1
Broadway Federal Bank offers 3.56% APY in a savings account. Minimum to open account is $1,000. Only available online.
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High-Yield Savings Account #2
ShoreBank offers 3.15% APY. Minimum balance is $1. No monthly fees. 
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High-Yield Savings Account #3
Alliant Credit Union offers 3.00% APY and only requires a minimum amount of $5 to receive the advertised interest rate. Minimum balance is $5. Fee Schedule.
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High-Yield Savings Account #4
Danversbank Online Savings Account offers 3.00% APY and only requires a minimum amount of $0.01 to receive the advertised interest rate. Minimum balance is $1.
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High-Yield Savings Account #5
CNB Bank Direct Online Savings Account offers 3.00% APY. Minimum to open account is $1. No minimum balance.
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High-Yield Savings Account #6
Chesapeake Bank Online Savings Account offers 2.85% APY. Minimum balance is $1.
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High-Yield Savings Account #7
Provident Direct offers 2.82% APY. Minimum to open account is $1. No minimum balance. No monthly fees.
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High-Yield Savings Account #8
GMAC Bank offers 2.75% APY. Minimum to open account is $1. No minimum balance. No monthly fees.
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High-Yield Savings Account #9
Presidential Online Bank offers 2.60% APY. Minimum to open account is $5,000. No monthly fees.
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High-Yield Savings Account #10
FNBO Direct offers 2.40% APY. Minimum to open account is $1. No minimum balance. No monthly fees.
Year-End Home Checklist
Unnecessary waste of food, like letting the food sit in your home for a long time and letting it expire, becomes a waste of money. Poorly run equipment wastes more electricity and tends to fail more early. Crowded and dusty homes have a negative impact on your energy level and lifestyle which then affects your financial life. In recession times, especially, we want to make the most use of all the things we own. We want to keep spending to a minimum and preservation of cash to a maximum. By keeping an up-to-date inventory of what we own, it gives you a good idea of what you can keep and what you can throw away.
The end of the year is a good time to do an annual inventory check for all the important things in your home. The purpose of this annual check is to make sure everything in your home is in tip-top shape, from having edible food in your fridge to fresh batteries in lifesaving devices to clean bathrooms. (more…)
What To Do With $1K, $5K, or $10K of Savings In Your Twenties?
Many recent college graduates have asked what is the best investments for their savings, ranging from a few to tens of thousands of dollars.
The best suggestion is to park your money in a liquid, high interest-bearing bank account while you read up on different types of investments and determine your financial plans and risk tolerance. There are several banks with very high paying interest rates like Emigrant Direct (3.25% APY) and ING DIRECT (2.80% APY).
The biggest mistake you can make is to look at the stock market and without doing any research, sink your money in the market thinking you can double your money in a short period of time. This type of irrational behavior is just blind gambling. If you don’t know what you’re doing, don’t do it. It is very important to prevent disastrous mistakes that can hinder your way to financial success. I know, because I have made mistakes in the past.
With that said, I hope you take the time to plan your goals. Park the money in a high interest savings account to earn interest while you do some research. First, find out your risk tolerance. If you can tolerate investment vehicles with high volatility, you could read up on the stock market or real estate investments. If you cannot tolerate much volatility or have the time to do research, go with mutual funds, high-rate CDs, or safe bonds.
Ultimately, you’re going to be the best financial planner for yourself. It does not have to take up much of your time. Spend a few hours planning for your future and it will make a big difference in the long run. Take an hour or two every month to make sure you stay on the right path. You can still manage your finances while looking for a job or working full-time. Before you know it, you will be well on your way to reaching your financial goals.
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