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Monthly Archives: May 2017
Millennials saving for uncertain future
How are millennials (we) saving for an uncertain future? According to an article by Michael Douglass from CNNMoney, millennials are saving earlier for retirement than their parents were. This is great news for us, but unfortunately the financial outlook is dimmer than in years past. In fact, recent figures from the Employee Benefit Research Institute state that millennials may need to DOUBLE how much we are saving for retirement. This is due in part to expert projections of how the stock market will perform in years, and decades to come. Experts have stated they expect to see a steady decline in average stock gains. In addition to the declining stock market, Social Security might not be available for us when we turn 67.
What to do with such a glum outlook? Well, first things first, you need to have a plan. Do you know how much money you need to save for retirement? Does your job offer a 401k plan with a match? If not, have you considered opening an IRA and investing in mutual funds? Experts say you should be saving roughly 10% to 15% of your income to live comfortably in retirement. Some experts suggest as much as 25% to ward off the potential financial woes of the future economic climate. Starting earlier is better, so the sooner you can start saving, the better off you’ll be. Even a few years can make a substantial difference.
Here are a few quick tips to help you along your path to retirement:
- Have a plan
- Know your retirement savings goals
- Pay yourself first – set aside a planned percentage of money from each paycheck (preferably at least 10-15% or more, if possible)
- Talk to a financial advisor about your situation (they can be free of charge)
- Perform regular assessments of your retirement accounts and contributions to make sure that you’re on track for your goals
- Adjust your contributions as necessary to meet your goals
- Don’t live beyond your means – if you are living paycheck to paycheck, reassess your situation and find ways to make cuts or, better yet, increase your income earning potential
Retirement savings plan
Investment experts suggest you should save double your annual income by the age of 35. The chart below is an “estimated” projection based on a starting annual income of roughly $35k at age 21, with regular 3% annual cost of living raises, a regular contribution of roughly 10% of your paycheck, and a 3% rate of return from your retirement account.
*The retirement chart is for illustration purposes only, and not to be used as a guidepost.
Note: This blog post is intended as informational only, and is not investment advice, consult a financial advisor before making any financial investment decisions.
Smart ways to encourage kids to start saving early
Are you tired of your kids spending money like it grows on trees? Encouraging kids to save their money in a world that revolves around spending is not necessarily an easy task. Given the fact that many Americans are distressingly under-saving, it’s critical that we instill the importance of saving for the future in the next generation. Here are some excellent ideas to make saving money attractive and, dare we say it, even fun for your kids:
1. Clear the piggy bank
The piggy bank may be synonymous with saving money, but drop a coin in the bank and it’s gone from sight. Use a clear jar so kids can see it visually accumulate. It’s much more exciting and increases satisfaction. Periodically, it might even be fun to change four quarters into dollar bills.
2. Set a savings goal
Save your hard earned money to purchase something, and it typically carries more value and appreciation. When your child finds something they’re just desperate to buy, help them set a savings goal. Might they have some birthday money coming soon or could they do some chores around the house? Be sure to encourage them along the way and celebrate their success when they reach their goal.
3. Match their savings
There’s no better incentive than making money when you save money. Consider matching your child’s saving efforts. Maybe not dollar for dollar, but an amount that’s fair and offers encouragement. You can tweak it as necessary so that it can grow with your child’s needs.
4. Open a savings account
A savings account is a safe place for saving money and it also gives older children an introduction to deposits, withdrawals, compound interest, bank statements, debit cards and banking processes.
5. Set a good example
Do you shop for bargains, use coupons, comparison shop? Your kids will mimic your behavior, so lead by example. Clip coupons and send them to look for the items in the grocery store. Show them how to compare prices as they get older, either in stores or online. Brand name versus generic, is it worth the price? They may sing a different tune when they have to spend their own money.
Your best bet is to start with simple discussions about saving and spending, and needs versus wants. Work conversations into your everyday life, offer lessons, different resources and tools to help them manage their money and you’ll have done your best to set them up for financial success. Starting small and early will help build a stronger foundation for financial health and hopefully lead to a more financially balanced group of savers.
6 tips on how to travel cheap
Memorable vacations can come with a price tag you’d rather forget. But with proper planning, smart research and a flexible attitude, you can travel cheap and still have an experience worth remembering. Here’s how.
1. Cut transportation costs
Before planning your trip, have a rough budget in mind. A vacation calculator can help. If you know how much you’re willing to spend on airfare, this map can give you ideas for destinations that are within your budget.
Traveling cheaply isn’t just about cutting costs — it’s also about getting the most out of what you spend. You may discover, for example, that the $400 you thought could pay only for a flight within the U.S. can actually take you to Paris and back.
If your travel dates are flexible, you may find an even bigger selection of places you can afford to visit. If you’ve already picked a destination, changing the departure dates could lower your airfare.
Setting up alerts for when prices drop should also be a part of your strategy. Try apps such as Yapta or Hopper, which will send you price notifications on flights you’re tracking. (Booking fees may apply.) You can also follow Twitter handles like @theflightdeal or @FareDealAlert for limited-time deals. If you find a price you like, scrutinize the airline’s baggage policy before booking. Some offer cheaper ticket prices, but have strict carry-on requirements or tack on sizable fees for overweight and oversized luggage.
If your destination is within driving distance, consider hopping in a car instead of on a plane. Use a trip calculator, like this one, to make sure it’s worth the tradeoff. Add in the cost of renting a car, if necessary.
2. Compare lodging options
Finding a cheap hotel room can be tricky and takes a bit of effort. Start by shopping around on sites like Expedia, Priceline.com and Kayak to find hotels in the area, and then search for hotel promotion codes online. Contact hotels directly to negotiate a lower price. Also consider staying in a hotel outside the center of the city and looking for last-minute deals.
If you’re open to alternatives, skip the hotel and book a room through a site like Airbnb, Homeaway and OneFineStay. Not only could those be more affordable, but often you’ll stay with a local resident who can point you to cheap restaurants and activities that aren’t in travel guides. Hostels can also be a money-saver if you’re OK with bare-bones accommodations and potentially sharing a room. Keep in mind that they may have age restrictions.
3. Eat wisely (and not just healthy)
Many travelers underestimate the costs of meals, snacks and tips, says guidebook author James Kaiser. He advises bringing your own food or buying it at a store when you arrive at your destination to save money.
That doesn’t mean you have to skip restaurants altogether and haul groceries around. Dining out is one of the most enjoyable parts of travel. The trick is knowing when to indulge and when to save.
Start by looking at your itinerary. Break down your meals each day and identify the times you want to splurge. Then look for ways to save money on the other meals. For example, you can avoid inflated prices at the airport by bringing food and an empty water bottle that you can fill once you’re past security (passengers are prohibited from bringing more than 3.4 ounces of liquids, per container, in carry-on bags at U.S. airports). For breakfast, pack energy bars so you can save time and money in the mornings.
Your spending will likely fluctuate from day to day, so remember to adjust your budget to avoid overspending.
4. Research your currency options
If you’re traveling abroad, find out if the country you’re visiting is plastic-friendly. If so, a debit or credit card that doesn’t charge foreign transaction fees could be your best bet. Otherwise, research your currency exchange options to avoid the poor rates and numerous fees common at airport kiosks. Those will shrink your vacation fund before you’ve even had the chance to unpack.
Visiting your bank or credit union to exchange money before you leave may be the best option. Assuming it has that currency, you’ll likely get better exchange rates and lower fees. And, just in case you end up needing more cash once you’re abroad, ask if your financial institution has international branches or a partnership with a bank overseas. If so, you may be able to withdraw cash from those ATMs with low or no fees.
5. Get a prepaid phone or SIM card
A cell phone can be useful for navigating new cities, as well as staying connected to travel companions and life back home. But for international travelers, it may also come with data roaming fees. You’d save the most money by ditching the phone during your trip, but that may not be realistic. Your best option will likely be buying a prepaid phone once you arrive or having your carrier unlock your phone, if possible, so you can use a foreign SIM card when you land.
6. Keep souvenir spending in check
Like everything else, set a budget for souvenirs. Also consider doing some research on the best souvenirs and shops, so you’ll have a sense of what you might buy and the prices to expect.
If you find yourself on the verge of an impulse purchase, try an abbreviated version of the 72-hour shopping rule, in which you put off buying something for three days to see if you still want it. That amount of time is probably impractical when you’re on vacation, but if your schedule allows you to return to the store the next day or even later that same day, you may find that you can easily live without that $150 wool sweater from Iceland. You were only going to wear it once, anyway.
Graduation gifts that won’t empty your savings account
With your mailbox overflowing with announcements and party invitations, there’s no denying that graduation season has arrived. Whether it’s high school or college, you’ll want to choose a gift that’s both thoughtful and appropriate for your graduate, but also doesn’t break the bank. Here are a few ideas to offer your congratulations:
A share of stock
A share of stock is a gift that can appreciate over time. To make it a little more personal, you may want to put some extra thought into the company you choose. Do you have some great memories of visiting Disney World together? Buy a share of Walt Disney Company. Mac lover? How about a share of Apple, Inc.? Car enthusiast? A combination of the Big Three, General Motors, Ford, and Chrysler would be a fun choice.
A financial planning consult
Planning, budgeting, and having to stretch your last $20 over the next week is always a challenge. Whether they’re college-bound or heading off into the working world, graduates likely have little experience effectively managing their finances. This is the time when they’re most susceptible to making some huge financial mistakes. Why not put an expert in their corner—other than Mom and Dad—who can offer some professional guidance and warn them of the consequences of poor financial management? It may not be the most exciting gift, but it will be one of the most valuable.
An annual subscription
Is your graduating senior an avid reader? An annual subscription to a specific area of study, personal finance or money magazine could be an excellent idea, especially if it’s digital! How about the WSJ or your hometown newspaper? Not only will they think of you each month when it arrives, they might learn something, find another interest, or just be able to ward off a small bout of homesickness.
A gift card
Gift cards are a great way to go if you don’t want to commit to a specific item. Does your graduate need something practical? Choose a Walmart or Target gift card. Are they headed to work? Maybe they need some new interview attire. Want to make sure they eat more than just pizza and french fries seven days a week? Their favorite restaurant gift card would be perfect. The choices are endless!
Money for groceries, books, gas, school supplies, clothes…cash will never go unused and is always appreciated regardless of the amount. It may not seem as personal, but let’s face it, these graduates are entering a new chapter of their lives, and they’re not sure what to expect or how much it will cost. On the bright side, not having to use a credit card will allow them to manage their debt more effectively and will reduce their chance of accumulating astronomical interest charges!
Whether you decide to give a practical gift, something smart, fun or completely off the wall, we’re sure your graduate will absolutely love it. They’ve worked hard to achieve their success and will appreciate just being celebrated. On to a new adventure, they’re going to need all they help and guidance they can get, and your encouragement and support will mean the world to them!
Join Us Saturday, May 20th in Alpharetta for Shred Day!
Join us for Shred Day, Saturday, May 20 th at the Georgia’s Own Alpharetta Branch , located at 5825 Windward Parkway in Alpharetta. This year TWO shred trucks will be on site from 9 a.m. – 1 p.m to shred your personal documents for free (limited to 5 boxes/bags of personal documents per vehicle). We’ll also have refreshments and giveaways for the family to enjoy!
We hope to see you there!
#MemberAppreciationMonday: Fernbank Museum
As part of #MemberAppreciationMonday, we are offering our members monthly discounts, simply for being one of Georgia’s Own. This month, enjoy discounted tickets to the Fernbank Museum of Natural History. Get general admission tickets for $5 off*:
- Go to http://www.fernbankmuseum.org
- Select BUY TICKETS
- Scroll down to “Museum Admission” and select “buy tickets”
- Select a date during the month of May
- Enter the amount of adults and/or children and select “add to cart”
- Enter “GEORGIA’S OWN” into discount code and click Apply
- Complete your purchase