Finding the One

Finding the One

http://www.piggyplanit.com/#!Finding-The-One/b6954/5791035e0cf27c01035b647c

Quick Savings Tips!

We all know that saving more is good and important. Saving more is the key to meeting our financial goals and having security in the future. The problem is getting started saving. Even the best-designed budget is worthless if you can't stick to it. Try these little tricks to make saving a bit easier!

• Automate it. This is especially easy if you can get your employer on board. If you have a retirement plan at work, raise your contribution to it by 1% every now and then. If you need to build up savings elsewhere (like an online savings account or investment account) see if they will pay part of your paycheck directly to that account so that you don't have to be involved in the process at all! Otherwise, just set up a regular transfer from your checking to your savings account.
• Take a holiday! No, don't book plane tickets just yet, take a spending holiday. Try one day a week, or one weekend a month, where you don't spend any money at all. This takes a bit of planning if you don't always keep your fridge stocked with food, but shouldn't be hard to do. Remember to pack some leftovers for lunch and have an idea for cooking dinner and your needs are taken care of. If you are tempted to go shopping or are invited out, you only have to put it one pause for a day. If you can control a spending impulse for a day, you can make better decisions about spending in other situations too!
• Get your priorities straight. Think deeply about what you want your money to do for you and what you value enough to spend money on. It is not healthy to think of a particular spending habit as a "vice" or a "splurge" if eating out or buying vintage clothes is something you value enough to spend on, budget for it and understand that prioritizing that will mean sacrifice in other areas. When confronted with something to spend money on, ask yourself how much you really value it.
• Comparison shop - for everything. Comparison shopping is not just looking for a cheaper cereal in the grocery store or looking at two websites for prices on a gadget. Comparison shopping can extend to anything you spend money on. Consider real alternatives to expensive outings or meals. If you want to try out a new restaurant, instead of spending on a full meal for yourself, gather a few friends and make it clear you want to sample the menu and keep the price low. If you are planning a date night, look at the cost of the activities you have planned and come up with a cheaper alternative to one of them.
• Be realistic. Don't plan on a drastic cut in your spending if you don't actually think you can do it. Keep yourself appraised of your spending on a regular (I recommend weekly) basis and if something is not working out, you may need to change things up.

Saving money requires saying NO to a lot of spending. This can be hard if we want to keep up with our friends or maintain a certain lifestyle. Ultimately you will need to figure out what you value, and understand the true value of future financial success that comes with good habits now.

February, March 2016 Newsletter

February, March 2016 Newsletter

Catch up with our office!  Jackie wrote the latest newsletter for New Perspectives.  See what she's been up to:  "Notes from the TD Ameritrade Conference."

Midday Money: Disability

Happy St. Patrick's Day!  Nancy was on the "Midday Money" segment of WLBT's Midday Mississippi.   Watch it online here:  MIDDAY MONEY: DISABILITY.

Using Your Money For Good

"Money is the root of all evil" is the first suggestion Google makes when searching about money. This is reflected in a lot of people's attitudes about money. While money is indispensable in the modern economy, we often feel a bit of disgust or shame about accumulating it and spending it on ourselves. It does not have to be this way! Beyond just living off of the profits from your hard work, there are plenty of ways to use your money as a force for good in this world. Here, we will briefly look at three ways, and hopefully I will expand those into longer posts later.

You can just give it away:

• If your money really disgusts you, or if you just know of someone who needs the money more than you, you can always just give it away. Each U.S. taxpayer can give $14,000 to each other without running into any gift tax issues. (If you're interested in going overboard, the giver has to pay the taxes.) There are a lot of uses in estate planning here. If you are thinking of giving to your children or grandchildren, just giving cash is the most advantageous way to do it with no strings attached.

You can give it away and collect some great benefits for yourself:

• If you don't just want to give unrestricted cash to a child or grandchild, consider a college savings account. Each state runs a 529 plan with possible tax benefits within that state.

• Give to charity - with more control. A Donor Advised Fund is an account you can set up which acts like your own personal charitable foundation. You can donate cash, appreciated stock or other assets for an immediate tax deduction. From there, you can grant money to a regular charity at any time. This is useful for taking advantage of the tax break before actually planning who and when to donate it. If you have a stock with a large capital gain, you can transfer it to the account, get the full amount as a tax deduction and not have to recognize the gain either. This could be a huge tax benefit!

You can invest it in responsible companies or projects who will provide you with a return while they make a positive impact in the world:

• Sustainable and Responsible Investing is attracting a lot more attention and money these days. Sustainability and Responsibility may form part of the core thesis of your investments, and you can generally expect similar returns investing this way as you can expect conventionally. You can either pick stocks and bonds yourself or you can invest through a fund. My main caution with investing through a fund is making sure that your actual beliefs and desires are accurately reflected in the fund management and portfolio. With a lot of investors and views to please, not everyone will be perfectly satisfied. That being said, there are now some really good options out there from both an investment standpoint and a sustainability standpoint.

• Some bonds are designed to finance noble causes. There are bonds that directly finance solar panel installation, microfinance, women and minority business support and many other socially responsible projects. These often have fixed terms and lower risk than an equity investment. You get to support the project and still earn a return on your money!

• Some credit unions also focus on financial education and anti-poverty practices that you can support just by opening a savings account!

• Some municipal bonds may be funding projects or government entities in your community you want to support. The interest payments are often tax exempt as well. Participating in a new offering directly lowers the cost of borrowing for the issuer. Be very careful here as these bonds can fund anything from bridges and schools to prisons and factories. Any broker or investment advisor should be able to tell you not only the terms and risk of the investment but the issuer and use of the proceeds to help you make a decision.

Keep in mind with each of these options there are a LOT of considerations to make. Consult your financial advisor as to what the implications here are. There are a variety of ways you can use your money for good and it may be refreshing to learn that you can do good with your money AND earn a decent return as well!

Not all of the investments are appropriate for all investors. This is only meant to give you some insight into the different ways you can use your money for good. As always, consult a trusted financial advisor before making any decisions on gifting, taxes or investing.