How to Save More Money Long Term - Start Saving Early!

Have you ever thought about your retirement? Of course, time will come that you have to quit your job and spend the rest of your years enjoying the prime of your life. But here's the catch: retirement is costly. You have to save about 70 percent of your income prior to your retirement years to cover your needs when you retire. Unfortunately, only a few people realize that. For instance, only 43 percent of Americans have planned the amount they will need for retirement. How about you? Now is the time to know how to save more money long term. The earlier you start, the more time your money has to grow. That's good news for your retirement fund. Listed here are some helpful tips to start building your retirement savings fund.

1. Make a realistic projection of how much you will need for your retirement.

That way, you will determine the right amount to save every month.

2. Save a portion of your income right away.

Before you even think of spending your salary, you must set aside a certain amount for your savings. To make that easier for you, set up an account in your bank that allows you to automatically deduct a fixed amount from your other account every payday. Ideally, 10 percent of your monthly income goes to your long-term savings.

3. Invest in bonds, stocks, or mutual funds.

Your short-term savings go to your bank account, while your long-term savings go to higher interest-yielding vehicles such as stocks, bonds, and mutual funds. That's how to save more money long term. Long-term savings options have higher risks, but they have the potential to yield bigger interests than bank savings accounts.

4. Look for savings options with high interest rate or rate of return.

Don't underestimate the difference between 5 percent and 10 percent interest rates. If you take into account the principle of compounding interest, the minimal 5-percent difference can be bigger than it seems! So when you look for investment options, study carefully the potential earnings they can yield. Examine the interest rates so that you know the amount to expect for your retirement.

5. Consider putting your money to 401 (k) and IRAs (individual retirement accounts).

A 401 (k) or IRA gives you privileges such as big tax breaks on your savings.

6. Never touch your savings no matter what.

The problem with most people is that they are tempted to spend their savings before they could earn a decent interest. If you access your money before your fund's maturity date, you blow your chances of getting a good amount of money for your retirement. What's more, you will be fined with penalty charges for early withdrawal of your funds.

You see, it's never too early or too late to start saving for your future. As long as you know how to save more money long term and start saving now, you can rest assured that your financial future will be stable and secure when you reach your retirement age.

You can use all these strategies to save money, reduce debt and improve your life but it will not last unless you have a system automatically set up to continually work without your input. Get Dan Cavalli's FREE money saving secrets set on auto pilot at:

How To Lower Your High Risk Driver Insurance Rate

Have you ever been involved in any kind of illegal driving issue? Involvement in unlawful driving activities, such as, speeding, DUI, at fault mishaps, etc. lead the motorists to be recognized as high risk drivers. As a result of this, it becomes difficult for them to obtain an inexpensive driver insurance deals. Driving under influence is the most common charge that most of the drivers are accused of. In addition to the above reasons, there are several other minor, but significant defects of the motorists that include their carelessness and negligence while they drive their automobiles, which ultimately results in moving violations, unpaid tickets, etc. This, in turn, subjects them to enroll for high risk driver insurance.

Various factors exist which help the insurance agencies to determine the risk associated with a particular driver when he controls his automobile steering. According to the consideration of the companies, men are at higher driving risks than women, teens are subject to greater risk than adults the risk associated with the drivers of urban areas is more than suburban or rural locations. Once you are declared to be a high risk driver, it is next to impossible to get cheaper high risk driver insurance. Some of the ways that could help in reducing your interest rates are as follows:

If you have a continuous car insurance coverage without any significant gap in between, it will definitely help you crack high risk driver insurance deals with lower rates of interest.

You can avail several discounts on these high risk insurance schemes, if you have automatic seat belts and airbags in your automobile.

An anti-lock brake to improve steering control, when you need to suddenly stop the car is an important component of a vehicle. Having this facility will bring your rates to quite a minimum level.

If you are insuring multiple cars under the same high risk driver insurance policy, it will surely reduce your insurance rates.

Know Something More About Annuities

A serial payment of fixed amount for a particular period of time is referred to as annuities. This payment, however, might be required from you or may be receivable by you from certain relevant sources. Paying an installment on a regular basis when you take a loan or borrow some amount of money from an institution might disturb your financially stable life. Thus, calculating the annuity amount prior to paying the money would help you manage your finances accordingly. The most common payment frequencies that are followed include yearly, semi-annually, quarterly and monthly.

Types of Annuities

There exist two types of primary annuities – ordinary annuity and annuity due.

Ordinary Annuity: In this case, the payments are required to be made at the end of each period. Coupon payments made by the straight bonds at the end of every six months after it gets matured is an ideal example of this type of annuity.

Annuity Due: The payments need to be made at the beginning of each period. Rent can be a good example over here, which is paid as soon as you start using one's property.

To calculate ordinary as well as annuity due amounts to be paid, you can use the formula that have been provided for quick computation without engagement of much of your time. Managing your finances to ensure financial stability to your life is really very important and hence calculating the amounts beforehand would be a great alternative for balancing your monetary needs. In order to calculate the annuities, you must try to figure out some of the significant things, such as, the annuity amount, interest rate, number of payments you need to make after each period. Knowing these information would surely be a great help in making the calculations, either it is the present or future value of an ordinary annuity or annuity due.

How to Save Money Long Term: Various Options for Growing Your Money

Saving up for the proverbial rainy day involves setting aside a portion of your money regularly. That's simple if you aim for short-term savings. But when you want to save for the long term, you savings plan gets more complicated. If you want to learn how to save money long term, you need to understand your various options. This will give you an idea which option can give you a good mix of flexibility, access, and returns. Ultimately, it will help you make good financial decisions for your financial future.

Important Considerations

You have to consider several factors before you explore your long-term savings options. The considerations include the risks you can bear, the amount you want to save, your personal tax situation, and when you want to get your savings.

Long-Term Savings Options

Deposit or Savings Accounts - This savings option offers the lowest risk to your fund, making it ideal for those who are just starting out or those who are not confident enough with taking bigger risks. Putting your money regularly in a deposit account teaches you how to save money long term. Another advantage is that you can access your funds whenever you need it. However, if you want to get higher returns from your savings, you are better off looking for other options.

Mutual Funds - Investing in mutual funds involve pooling your money along with that of other investors. A trained investment fund manager will then put the pooled funds to different investing platforms such as bonds and stocks. This investment strategy leads to a minimal risk because of a wide variety of funds. For example, if one of the funds fails, other funds will compensate for the loss. You still end up earning a good deal of return from your savings.

Bonds and Stocks - Such option gives you very high returns, but stocks in particular also come with high risks. The advantage of investing in stocks and bonds is that you have the freedom to determine what stocks or bonds to buy and sell, as well as when to do them. The only drawback, however, is that you cannot access your funds until the maturity date. If you really have to access your money, there is a corresponding penalty for that. To maximize returns and minimize losses, you must select the most profitable companies whose stocks or bonds you will buy. This investment option is ideal for you once you already have adequate knowledge about investing, and you are prepared to accept any risk.

Pensions - These are essentially for retirement fund, which means you cannot access your money until your retirement age. You can have your pension automatically deducted from your salary, so you are assured of consistent savings. The best thing about pensions is that they are tax exempt. However, with this option, you run the risk of getting less than what you expect at the time of your retirement. This is because the value of pension funds is not guaranteed.

Now that you know the different options available, you will never have to wonder how to save money long term.
You can use all these strategies to save money, reduce debt and improve your life but it will not last unless you have a system automatically set up to continually work without your input. Get Dan Cavalli's FREE money saving secrets set on auto pilot at:www.the-richest-man-in-babylon.com