Money jar's?

[lizinginholland]

ok so im a pretty Creative person, and well since im 18 im not going to make as much money as i could but i would like to start preparing for the future life and things.. anyway, so i want to make like all these different money jars to put on myshelf and obviously to fill haha, one for:

Tithing

Savings in general (future house etc.)

Emergency money (if i need to go somewhere if there's a family emergency we're all spread out over the world haha)

Gift money(to buy birthday presents etc.)

Vacation money (self explanitory)

Money for School

and then one thats way out there haha, but that might be a good idea for the future

future kids college money

( can never be to prepared)

any ideas? would you add any jars? or take any out?

[Hemidakota]

Your list is complete....

[rameumptom]

I suggest not using jars, but investments for the longer term items. Even a Certificate of Deposit at 4% will help your money not lose value due to inflation.

[BenRaines]

Rameumptom, I was looking at CDs yesterday. Best yield i could find going out 10 years was under 4%.

Ben Raines

[Hemidakota]

At this point, be careful on WHOM you bank with....

[rameumptom]

Rameumptom, I was looking at CDs yesterday. Best yield i could find going out 10 years was under 4%.

Ben Raines

Try GMAC Bank online. I think they are offering 4.25%.

I just went out this week and purchased some gold and silver coins to add to my long term investments. Right now, they have dropped in price (gold is down to about $880/oz from over $1K, and silver can be had for around $14/oz down from over $20.) With the economy on its way into a deep recession, it will probably be one of the safest investments for the next couple years. Bought mine at Blanchard and Company, which had much better prices than the company that Glenn Beck promotes on his show.

[rameumptom]

As a counselor in a Re-entry and Educational prison facility, one of my jobs is to teach money management. I'm in the middle of writing semi-monthly articles for the facility newspaper on money management, and if people are interested I'll begin posting the first few articles. If you don't like them, or if there is little response, I'll just stop adding them.

Financial Success, part one.

As many of you have heard me say, Information is Power. The key difference between a rocket scientist and a ditch digger is the amount of information each one has. A rocket scientist can build rockets AND dig ditches, but the ditch digger is limited by his lack of knowledge. Only by applying himself and gathering the needed information, could a ditch digger also become a rocket scientist.

While gathering and properly using information is necessary for success in all areas of life, it is especially true in finances. One of the key factors leading to divorce is money problems. Money problems normally come about due to lack of information on how to manage money, or having the information, but not applying it. To know that something is bad, and to avoid something because you know it is bad, can be two different things.

Many of today’s financial problems we hear about on the news are due to people making choices without first researching. For example, the sub-prime market crash is a perfect example. The housing market was carrying along the economy that suffered in 2000 over the technology stock crash, and the costly aftermath of 9/11. Regulations were loosened to allow more money to be loaned. Banks and other companies involved began offering loans to people who were risky to lend money to. They helped people get into homes by giving them two loans (the second to pay for the 10-20% down payment normally required by the borrower). Some of the banks encouraged people to get into a more expensive home than they probably could afford.

Often unexplained was the adjusted rate mortgage (ARM) and the balloon payment waiting the person 5-10 years down the road. So millions of sub-prime loans were made to people hoping to get into their first home with an $800 monthly mortgage payment. This payment would only go to pay the interest that was accumulating on the loan, with nothing going to the principle (the actual cost of the home).

In 2006, economic factors began to tighten up the money supply that banks could lend. This forced many of them to raise the ARM to as high as 14% on the loans. Suddenly, people who were barely making the $800 per month payment were now being forced to pay $1400 per month. And for many people, the time had come to make a required lump sum payment of $5000-$10,000. With no choice in the matter, people began walking away from their homes and loans, leaving the big banks and loaning institutions holding lots of property and debt. The write-offs made by banks is in the hundreds of billions, and could reach over $1 Trillion before it gets better.

The collapse of the housing market is one leg of a three-legged stool that is causing our economy to struggle right now. All of this is due to recklessness by the loaning institutions AND the ignorance of people jumping into a high risk situation without truly researching it.

What we don’t hear about are the millions of homes that are safe. Many people have learned to buy within their means, and to not risk their financial status on a house that is too expensive to own and maintain. A person can always trade up later when finances allow it, but once a person has lost a home to foreclosure, it affects their ability to obtain future loans for many years to come.

So, the first point to remember and never forget: Information is Power. If you do not do the research and then apply it properly, it is a very good chance you will not succeed financially.

[rameumptom]

Achieving Financial Success, part 2

In the first part, we looked at how lack of quality information and unwise decisions can bring financial doom to individuals and whole sectors of the economy. When we don’t do our homework, we are forced to make decisions without all the facts, often leading to poor guesswork. Such decisions have caused millions of people to lose their homes in the current housing crash. Remember, Information IS Power.

Today and over the next few weeks, we’ll discuss issues concerning developing a solid baseline budget.

There are 5 major steps in establishing a budget:

1. Determine your Income

2. Determine Expenses

3. Compare Income vs Expenses to determine how well you currently are doing

4. Prioritize Salary and Expenses to create a new baseline

5. Review your baseline budget every 3 months minimum

Income is any money that comes in on a regular basis that is dependable. This includes salary from jobs, Social Security retirement or disability income, monthly annuities or trust fund payments. Income does NOT include money that is not consistent, such as income tax returns or earned income tax credit (EITC). Since no one knows what next year’s budget will be, or how Congress will determine taxation, no one knows whether there will be a tax return next year or not.

Income is the easy part of the process to determine, as most people have few ways they receive income.

Expenses are another thing. Expenses usually determine whether a person is financially sound or not. Michael Jackson was once reported as to have $750 million, and Mike Tyson earned over $300 million in his lifetime. Both have declared bankruptcy. Both have had to sell off assets to pay their creditors, including Michael Jackson’s Never Land Ranch and his rights to the Beatles’ music.

What happened to them? They didn’t control their expenses. Even in raking in millions of dollars, a person who does not control expenses can easily overspend, buying up cars, homes, expensive toys, vacations, jewelry, clothing, etc. Michael Jackson was known for entering a store and buying things for every person in the store. While a nice gesture, he did not contain his spending and is now broke.

How do we determine our expenses? Start by carrying around a pen and small notebook. For a minimum of 1-2 months, write down every expenditure that you have, including: rent/mortgage, insurances, utilities, food, gas, credit card payments, movies, fast food, and chewing gum.

Once you have obtained this data over a few months, you are now ready to compare Income versus Expenses. Subtract all of your expenses in a month’s time from your income. This is your monthly net worth. It tells you whether you have lots of money left over at the end of the month, barely making it from paycheck to paycheck, or if you are in the red. This is your initial and current baseline. This bottom line tells you just how bad of a situation you are in.

Having determined (1) Income, (2) Expenses, and (3) Compared Income to Expenses, you now have the information necessary to make decisions to put your budget in order and get your financial base in order. Next issue, we’ll discuss prioritizing our expenses to improve the bottom line.

[miztrniceguy]

ok so im a pretty Creative person, and well since im 18 im not going to make as much money as i could but i would like to start preparing for the future life and things.. anyway, so i want to make like all these different money jars to put on myshelf ...

exactly which shelf, and what is your address?

...j/k

[pam]

ok so im a pretty Creative person, and well since im 18 im not going to make as much money as i could but i would like to start preparing for the future life and things.. anyway, so i want to make like all these different money jars to put on myshelf and obviously to fill haha, one for:

Tithing

Savings in general (future house etc.)

Emergency money (if i need to go somewhere if there's a family emergency we're all spread out over the world haha)

Gift money(to buy birthday presents etc.)

Vacation money (self explanitory)

Money for School

and then one thats way out there haha, but that might be a good idea for the future

future kids college money

( can never be to prepared)

any ideas? would you add any jars? or take any out?

You forgot one. The "donate to Pam" jar. lol Good that you are thinking about savings for different things.

[Wingnut]

What I always did when I was younger (and my parents were teaching me the concept of savings) was separate 10% for tithing, 50% for savings, and 40% for spending money. When I "grew up" and got my own job(s), I had two bank accounts -- one savings and one checking. I had direct deposit, and made sure that $200 of every paycheck went into savings, where it increased with a higher interest rate, and I couldn't get to it with checks or my debit card. The balance of my paycheck went to my checking account.

[pam]

I have a savings account in a town that my parents used to live in which is about 2 hour drive away. Only way I can get money out is to go there personally. It has helped me resist the temptation to nickle, dime it to death.

[lizinginholland]

You forgot one. The "donate to Pam" jar. lol Good that you are thinking about savings for different things.

haha! no but now i do realize i did forget my ''M-savings jar'' , right now that means ''mission'' savings and thats what im plannin it for unless plans change haha later on then its ''marriage''. and after my mission and such it can be my mystery jar llol for like vacations or whatever or emergency's haha:P

[pam]

haha! no but now i do realize i did forget my ''M-savings jar'' , right now that means ''mission'' savings and thats what im plannin it for unless plans change haha later on then its ''marriage''. and after my mission and such it can be my mystery jar llol for like vacations or whatever or emergency's haha:P

Love the idea of the "M" jar...Can be used for different things as you pass through different stages of your life.

[miztrniceguy]

"M" is for Miztrniceguy!!!....yay!!!i'm getting money!!

[pam]

"M" is for Miztrniceguy!!!....yay!!!i'm getting money!!

Good try...good try.

[a-train]

I save with the U.S. Mint. Silver Eagles, Morgans, Peace Dollars, those are a great way to save and a lot of fun too.

-a-train

[pam]

I also have a jar that I throw all the "gold" (Sacajawea (sp) and Presidents) dollars into. Everytime I come across one at work I buy it and put that into my jar. I went to a family reunion last year and had enough money with this jar to pay for hotel, gas and all other traveling expenses. It's amazing how quickly they add up.

[StrawberryFields]

This week my hubby and I have been asked to head up our wards Sub-4-Santa. The bishop said that the ward members had been saving that money in a jar.:)