Traits of frugal people

Have you ever heard someone say “I am not cheap, I am frugal”? Well bottom line is frugal people usually have ways of saving that the average person might not have ever considered. For example they may pay themselves first. They do this by investing in their retirement fund or other savings accounts first, then pay other bills using the money that is left. 
Most people pay their bills first, and then save or invest if there is any money left. Frugal people realize that having money to invest is the most important priority, and they take care of that priority first. If there is not enough money left to pay the bills, then frugal people find ways to make their bills smaller so they can fully fund their investment goals. Other ways they save, they eat out less, live in a smaller house, and they make spending decisions in terms of needs and wants, while most people think in terms of having more and better stuff than their friends and neighbors. We can definitely learn some saving ideas from frugal people.

Your Safe money Show High Cost of Education 8 27 16

Highlights for August 27 Your Safe Money Show

The cost of a college education has put an enormous strain on not only the student but parents as well. We will examine this problem from a couple different angles and see what we can do to minimize the long term costs.
Also on this weeks Your Safe Money Show, storing stuff at self-storage units is getting more expensive we’ll see if de-cluttering might be the answer. 

SSA and New Security Measure

If you have an online account with Social Security understand that they’ve added a new step to protect your privacy. When you sign in atssa.gov/myaccount with your username and password, they will ask you to add your text-enabled cell phone number. A text message with a code is than sent to your phone. You then enter that code on the website to get access to your account.
A new code is required each time you log in because it expires after 10 minutes. So if you don't have a cellphone that receives texts, you can no longer log in to your account.
Many people have voiced their complaints about this change and Social Security responded by saying they recognize that not every mySocialSecurity account holder may have a cell phone, have consistent cell service in a rural area, or be able to receive a text message. However at this point they can’t offer alternative methods. We’ll see what the future brings but keeping sensitive information needs to be a top priority.

Your Safe Money Show Texting and Social Security 8 20 16

Your Safe Money Show Texting and Social Security 8 20 16

Rule of 72

Many times as a retirement income planner I am asked “How long will it take to double my money”? I find using the rule of 72 is a simple way to figure out the number of years it takes to double your money at an annual rate of return. You divide the rate, as a percentage into 72. So as an example: an investment with a 6 percent compound annual rate of return will take 12 years to double in value.

72 divided by 6 (rate of return) = 12 (number of years it will take to double an investment)
Financial planners like this formula because it’s easy to understand and it shows the value of saving even with modest or a reasonable rate of return on your investment. You can also use the rule of 72 for expenses like inflation or interest: If inflation rates go from 2% to 3%, your money will lose half its value in 24 years instead of 36. The rule of 72 is just math, but it's an extremely helpful rule of thumb to put the marathon of investing into perspective. Think through what you use your savings for, and make sure you use them in a way that allows your money to reach its full potential.

Your Safe Money Show Security Show 8 13 16

Your Safe Money Show Best of Show 8 6 16

Highlights for this week's August 6, Your Safe Money Show

For this week's Your Safe Money Show we'll be sharing highlights from shows from the past six months. Specifically we'll touch on unclaimed money, financial literacy, real rate of return, retirement accounts, and understanding national debt.

Procrastination and 401(k)'s

I would say one of the most significant psychological factors that keep people from achieving their saving and or retirement goals is procrastination…doing nothing. One way people procrastinate is with 401(k) plans.When a company offers to match a portion of what an employee contributes, that's free money, take it! Unfortunately procrastination sets in; it’s much easier to just imagine doing the right thing in the future. Many more employees say they plan to take action and enroll, than actually do. That’s why more companies have found success with automatic enrollment: In one company that adopted automatic enrollment (when employees first become eligible for the savings plan, they’re automatically enrolled unless they opt out), 401(k) participation rates for new workers increased from 49% to 86%. So automating aspects of your finances, could not only simplify your life, but also eliminate the tendency of procrastination.