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Apache is functioning normally

June 5, 2023 by Brett Tams

Long, long ago, in a mystical forest with good Wi-Fi, Goldilocks opened an investing account with $3,000 to invest.

At first, she considered pouring more money into her retirement accounts (which only holds mutual fund investments). But her Roth IRA was already maxed out for the year. Moreover, she knew that she would need this money sooner than age 65.

“Too cold!” she said.

Next, she considered investing in individual stocks. But even though she’d done her due diligence, she knew that investing in individual securities can be very risky. She didn’t need to become a millionaire overnight – she just wanted to make enough money to buy a cottage in a few years.

“Too hot!” she said.

Finally, she began browsing ETFs. ETFs are generally more stable, diverse, and safe investments than individual stocks, but they’re also more accessible than your retirement account.

“Juuuuust right!” she said aloud.

10 years later, Goldilocks’ investment had paid off – thanks to a steady 10% APY, her $3,000 investment had become nearly $8,000, so she was finally able to pay restitution and legal fees to the family of bears down the way.

Thanks to inherent diversity and steady returns, ETFs are a great place to stash a few grand to help you save for a big expense years or decades down the line.

What’s Ahead:

Large-cap stock ETFs

Large-cap ETFs typically bundle together blue-chip stocks or even an entire index, providing steady, sizeable returns. Warren Buffet once famously said:

“I just think that the best thing to do is buy 90% in S&P 500 index fund.”

So I’ve included two such options on the list.

You’ll also see a lot of Vanguard funds on this list because, well, they’re just awesome all the way around. Vanguard funds are extremely popular among investors because they combine industry-leading returns with incredibly low expense ratios.

ETF	Symbol	Fund info	Expense ratio
Schwab US Large-Cap Growth ETF™	SCHG	The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index.	0.04%
SPDR S&P 500 ETF	SPY	The SPDR® S&P 500® ETF Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index (the “Index”).	0.0945%
Vanguard S&P 500 ETF	VOO	The Vanguard S&P 500 ETF invests in stocks in the S&P 500 Index, representing 500 of the largest U.S. companies.	0.03%
Vanguard Russell 1000 Growth ETF	VONG	The investment seeks to track the performance of the Russell 1000® Growth Index. The index is designed to measure the performance of large-capitalization growth stocks in the United States.	0.08%

Mid-cap stock ETFs

Goldilocks’ choice – mid-cap ETFs – bundle together companies that have an exciting growth curve before them, but are established enough not to fold overnight.

If you can tolerate a little more risk in exchange for higher potential returns than an index fund, consider these top picks:

ETF	Symbol	Fund info	Expense ratio
Vanguard Mid-Cap Growth ETF	VOT	VOT seeks to track the performance of the CRSP US Mid Cap Growth Index, which measures the investment return of mid-capitalization growth stocks.	0.07%
iShares Core S&P Mid-Cap ETF	IJF	IJF seeks to track the investment results of an index composed of mid-capitalization U.S. equities.	0.05%
Vanguard Mid-Cap ETF	VO	VO seeks to track the performance of the CRSP US Mid Cap Index, which measures the investment return of mid-capitalization stocks.	0.04%
Schwab U.S. Mid-Cap ETF	SCHM	SCHM’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Mid-Cap Total Stock Market Index.	0.04%

Small-cap stock ETFs

If you’ve looked at your asset portfolio recently and thought “hmm… needs a little more spice,” then a small-cap ETF might add just the right amount of kick.

These ETFs track small companies with big potential, so they present higher risk but higher potential reward than large- or mid-cap ETFs.

ETF	Symbol	Fund info	Expense ratio
Vanguard S&P Small-Cap 600 Growth ETF	VIOG	VIOG employs an indexing investment approach designed to track the performance of the S&P SmallCap 600® Growth Index, which represents the growth companies, as determined by the index sponsor, of the S&P SmallCap 600 Index.	0.15%
Vanguard Small-Cap ETF	VB	VB seeks to track the performance of the CRSP US Small Cap Index, which measures the investment return of small-capitalization stocks.	0.05%
iShares Core S&P Small-Cap ETF	IJR	IJR seeks to track the investment results of an index composed of small-capitalization U.S. equities.	0.06%
Schwab U.S. Small-Cap ETF	SCHA	SCHA’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Small-Cap Total Stock Market Index.	0.04%

International stock ETFs

ETF	Symbol	Fund info	Expense ratio
Vanguard Emerging Markets ETF	VWO	VWO invests in stocks of companies located in emerging markets around the world, such as China, Brazil, Taiwan, and South Africa.	0.10%
Vanguard Total International Stock ETF	VXUS	VXUS seeks to track the performance of the FTSE Global All Cap ex US Index, which measures the investment return of stocks issued by companies located outside the United States.	0.08%
SPDR® MSCI EAFE Fossil Fuel Free ETF	EFAX	EFAX seeks to offer climate-conscious investors exposure to international equities while limiting exposure to companies owning fossil fuel reserves.	0.20%
Vanguard FTSE Developed Markets ETF	VEA	VEA provides a convenient way to match the performance of a diversified group of stocks of large-, mid-, and small-cap companies located in Canada and the major markets of Europe and the Pacific region.	0.05%

Fixed income ETFs

ETF	Symbol	Fund info	Expense ratio
iShares Core U.S. Aggregate Bond ETF	AGG	AGG seeks to track the investment results of an index composed of the total U.S. investment-grade bond market.	0.05%
Vanguard Total Bond Market ETF	BND	BND’s investment objective is to seek to track the performance of a broad, market-weighted bond index.	0.035%
Vanguard Intermediate-Term Corporate Bond ETF	VCIT	VCIT seeks to provide a moderate and sustainable level of current income by investing primarily in high-quality (investment-grade) corporate bonds.	0.05%
Schwab 1-5 Year Corporate Bond ETF	SCHJ	SCHJ’s goal is to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of the short-term U.S. corporate bond market.	0.05%

What does large-cap, mid-cap, etc. mean?

To start, “cap” refers to market capitalization, or the total value of a company’s shares on the market. For example, if a company has 1 million shares on the market valued at $10 a pop, their market cap would be $10 million.

Large-cap ETFs are comprised of companies each with a market cap of $10 billion or higher. The Vanguard Mega Cap ETF (MGC), for example, contains around 250 of the biggest companies in the USA, from Amazon to Apple. Since they’re often full of blue-chip stocks that provide slow-but-steady returns, large-cap ETFs are considered a safe, long-term investment.
Mid-cap ETFs are comprised of companies each with a market cap in the $2 to $10 billion range. All ETFs are designed to succeed and make money, so mid-cap ETFs are filled with midsized companies that are in the middle of their “growth curve,” so to speak – they’re high-performing, high-potential companies that may become the next blue-chip, so mid-cap ETFs balance risk and reward.
Small-cap ETFs are comprised of companies each with a market cap of “just” $300 million to $2 billion. Fund managers who design small-cap ETFs cast a wide net, aiming to scoop up “the next big thing.” As a result, these ETFs have higher growth potential than most ETFs, but also steeper downside if the smaller companies within end up folding.
International ETFs are, as the name so subtly hints, full of non-U.S. stocks and securities. There are country-specific ETFs, foreign industry ETFs (think non-U.S. automotive stocks), and even ETFs representing emerging markets like sub-Saharan Africa and Brazil.
Fixed income ETFs, aka bond ETFs, give you access to diverse bond investments. For the uninitiated, bonds are like loans you make to companies or governments that they pay back with interest. You can read more about bonds here, but the bottom line is this: fixed-income ETFs provide steady income in the form of dividends, so they’re a good choice if you want a safe investment that gives you a paycheck!

Read more: How To Invest In ETFs

Which type of ETF is right for you?

Well, it depends on both your goals and your risk tolerance.

If you can tolerate some risk in your portfolio, and want your ETF investment to pay off sooner than later (within five years), you may want to consider small-cap and mid-cap ETFs. They’re riskier, but have higher upside potential.

If you’re looking for a safer investment that will multiply your money over a longer horizon (5+ years), a large-cap ETF is probably a fit.

If you’d like your ETF investment to provide a trickle of cashback each month, fixed income ETFs are probably your best bet.

And finally, if you don’t mind doing a little research or believe strongly in the economic performance of a foreign market, you’ll be a fan of international ETFs.

Read more: How To Determine Your Investing Risk Tolerance

About our criteria

With hundreds of commission-free ETFs available, how did these become the winners?

To make this list, ETFs had to impress in all of the following categories:

Earnings potential. Naturally, the first thing looked at was the ETF’s performance over the past five years. A good sign of a healthy ETF is how quickly it bounced back in Q3 2020 after the market panic surrounding the COVID-19 pandemic. Springboarding back and surpassing Q1 levels are a sign of investor confidence, and helped solidify the ETF’s place on this list.
Expense ratio. Next, I looked at the ETF’s expense ratio. Your expense ratio is the percentage of your investment you pay to the fund manager for having shares of the ETF. Although measured in fractions of a percent, expense ratios make a difference – 0.80% of $10,000 is $80 and 0.04% is just $4, so ETFs with an expense ratio below 0.20% were favored.
Fund reputation. You’ll see a lot of repeated names on this list because funds like Schwab, BlackRock (iShares), and especially Vanguard have a proven track record of building well-crafted, reliable ETFs with low expense ratios. Fund reputation matters in the long run because big funds attract big money, which helps to generate higher returns for you!
Solid fundamentals. ETFs aren’t just random grab bags of stock and securities – each one is a carefully curated list, with selection criteria driven by both AI and human logic. There are some wacky and unique ETFs out there – such as Millennial ETFs and Space ETFs – and I’ll cover more of them in an upcoming piece. But this list isn’t for the experimental, exciting stuff – it’s for safe, dare I say boring, places to stash and multiply your savings.
Conscious investing. Finally, this was more of a small thing in the back of my mind, but I wanted each ETF on this list to score average or above average for “conscious capitalism.” No fossil fuels, no sin stocks (learn more about sin stocks here) – and not just because it’s not the way of the future, but because investments in conscious capitalism generally outperform “sinful” investments in the long term.

Commission-free ETFs solve a big problem for young investors

Commission-free ETFs aren’t just great because they’re cheap – they actually solve a pretty serious problem plaguing young ETF investors.

You see, ETFs have heftier commissions and trade fees than stocks because ETFs can be resource-intensive to create. Let’s say you’re a fund manager and you have an idea for an ETF. The process to get your ETF approved by the SEC isn’t unlike getting your new drug approved by the FDA; you have to research a ton, understand the risks, and propose your ETF to the government.

Once your ETF is approved and available, you probably want some additional compensation for your work beyond just capital gains from your ETF.

You don’t want to charge a high percentage trade fee, because big-ticket investors will be turned off. So, instead, you charge a $10 to $20 fee per trade of your ETF.

Big-ticket investors who drop $50,000 on a trade couldn’t care less about a $20 fee, since that represents just 0.04% of their investment. But if you’re a young investor, investing maybe $50 to $100 out of each monthly paycheck, a $20 per-trade fee is way too high – basically pricing us out of ETF investing. 🙁

Thankfully, many brokerages have realized that their per-trade fees are too high for young investors and have eliminated commissions on trades of certain ETFs. At first, funds like Vanguard and Fidelity only let you trade commission-free on their own platforms, but now, they’ve expanded their commission-free goodness to wide platforms like J. P. Morgan Self-Directed Investing.

And it’s not just the junk ETFs that get traded commission-free – in fact, it’s often quite the opposite. Firms like Vanguard and Fidelity will let you trade their most successful ETFs for free – presumably because they don’t really need the commission.

Disclosure – INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Summary

If you’re looking for an investment vehicle falling somewhere between your boring retirement account and your exciting individual stock purchases, ETFs are an excellent choice. And now that the big funds are waiving commissions on their top-performing ETFs, there’s never been a better time to dive into the world of ETFs and inject some low- to mid-risk into your portfolio.

ETFs are also an excellent investment if you’re looking to multiply your money and cash out within 2 to 10 years. You can even leave your ETF investment until retirement, if you want, so it has plenty of time to multiply under compound interest.

Not all ETFs are made the same, however – and the SEC has approved some stinkers over the years, for sure. These ETFs, on the other hand, are universally considered top-ranked and well-supported within the investor community – and are a superb place to start.

Apache is functioning normally

June 5, 2023 by Brett Tams

Inside: A biweekly budget is a budget that is broken into two-week periods. Learn how to create biweekly budgets and download your free template.

Many people create budgets, but only a few budget on a biweekly basis.

That is an interesting statistic because 43% of Americans are paid on a biweekly pay period (source).

So, the thought process is more people should be interested in learning knowing how to create a biweekly budget. But, in reality, most people give up on budgeting or move to a budget-by-paycheck method.

Recently, we moved over to a biweekly pay period. And thus, we quickly had to change how we focused on budgeting.

While most financial bloggers and gurus would agree, budgeting with biweekly paychecks makes the whole concept of budgeting hard.

While biweekly budgeting isn’t easy, it can be done!

This post will show you how to create an easy-to-manage and effective biweekly budget so that you can conquer your financial goals in the most efficient way possible!

We will go through the exact steps I use to create a biweekly budget to cover two weeks’ worth of expenses, get one month ahead on your bills, or adjust your planning to cover your monthly expenses.

This is a basic example, and you should use your own personal situation when developing your own budget.

Do you struggle to keep your finances on track? If so, here are some tips for creating a biweekly budget.

What is a biweekly budget?

A biweekly budget is a budget that takes into account a person collecting a paycheck every 14 days. This type of budget is beneficial for those who are paid on a biweekly schedule, as it allows them to plan their spending more effectively.

However, many people find it difficult when bills are due on a monthly basis.

Difference between biweekly and semi-monthly paychecks

When receiving paychecks twice a month happens with two types of pay schedules either biweekly or twice-per-month. The difference between these two schedules is the number of checks per year.

Those who are paid biweekly receive 26 checks per year, while those who are paid twice-per-month receive 24 checks per year.

Making a budget on a biweekly income can be difficult because the total number of checks received in a year varies depending on the pay schedule you have.

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How does a biweekly budget work?

A biweekly budget divides your budget into two parts, one for each paycheck that is received. This can be helpful for those who want to better track their spending or for those who want to save money.

It can be helpful to think of your biweekly budget as two separate budgets – one for bills and one for everything else.

When you create a biweekly budget, you are essentially creating two budgets over the span of ten months. Then, in the other two months, you will receive three paychecks; thus, need to create three budgets.

Since many monthly expenses remain the same when switching from a month budget to a biweekly budget, knowing which expenses should be increased or decreased beforehand can make the process smoother.

Additionally, it is helpful to know how much money you will need for each check. That way, you won’t have to worry about bouncing checks or accidentally overdrawing your account.

How to create a biweekly budget

Creating a biweekly budget is a great way to start getting your finances in order. You can either create your own template or use one of the many templates that are available online for free.

One popular template is ours!

Money Bliss Biweekly Budget Template (see below to get your copy). This template is available as a free download and can be used in conjunction with our budget binder. The planner allows you to track your income and expenses, as well as financial documents such as bills and bank statements.

There are a few key things to keep in mind when creating a biweekly budget:

Adjust your budget as needed.
Be flexible when adjusting to this 2 week budget style.
Compare your regular expenses to your spending from the past month.

Now, here are the steps to creating a biweekly budget that works.

Step 1: Print out a calendar

You need to print out the dates you get paid from your employer. On the biweekly paycheck, Fridays are usually pay dates; you just need to know which Fridays!

So, print out a blank calendar. Write down when you get paid along with when your bills and expenses are due.

This will help you get an idea of where you are spending your money and where you can cut back.

Many people find it helpful to color code by category and add stickers. This will help you see your budget at a glance.

Step 2: Put in a buffer

This will help ensure that you don’t have to worry about going into debt if something unexpected comes up.

Ideally, you should try to save at least two weeks’ worth of living expenses so that you know you’ll be able to cover your costs even if something goes wrong.

For us, all of our income goes into an “income checking” account. Then, at the beginning of the month, we transfer money into our “bills checking” to cover our expenses for the month.

Then, we always have at least one month of expenses on hand – just in case.

Step 3: Organize expenses

The easiest way to do this is by category. There are a few different ways to categorize your expenses, but the most common are:

Fixed or recurring expenses: These are expenses that happen every month, like rent or utilities
Variable or occasional expenses: These are expenses that happen each month but vary in amount, like groceries or entertainment
Annual or quarterly expenses: These costs are less frequent, but take a good chunk of your budget like an annual insurance payment or kid’s sports fees
One-time only expenses: These are one-time only costs and you don’t anticipate them again.

For most people, the struggle happens when organizing expenses. The expenses you “forgot” about are what blow your budget. Honestly, these are not forgotten expenses – just something you forgot to plan for.

Step 4: Focus on Zero Based Budgeting

Additionally, it’s important to use a zero-based budgeting approach.

With this method, you start by assigning every penny of income a job, whether it be for rent, groceries, or savings. This way, you can make sure that you’re not overspending each month.

A zero-based budget is a type of budget that starts with the assumption that there is nothing in your bank account.

This includes both predictable and unpredictable costs.

In the next steps, you will lay out what paycheck will cover what bills.

For example, some costs, like your rent or mortgage payment, will likely stay the same from one biweekly period to the next. By taking into account both types of expenses, you can get a more accurate picture of how much money you will need each pay period.

Learn more about zero based budgeting.

Step 5: Write your first biweekly budget

Writing a biweekly budget is the first step to creating financial stability. It’s important that you set up a plan for each paycheck to make sure your bills get paid.

When creating your first biweekly zero-based budget, you’ll want to start by paying your immediate obligations. This includes any bills or fixed expenses like rent or car payments that are due during the first pay period. After that, focus on covering your variable expenses such as groceries, gas, or eating out.

To make sure every dollar has a job, you should consider these tips:

If you have any leftover money at the end of the month, send it to your savings or make extra debt payments.
Make sure that each category in your budget has a specific amount assigned to it.
Keep track of your spending so that you can stay on track and adjust as needed.

Paying your most important bills first is a crucial step in making sure that your finances are on track.

Step 6: Write Your second biweekly budget

The second biweekly budget is a budget that’s typically created for the 2nd paycheck of the month. This budget would cover the next two weeks and may need to cover expenses at the beginning of next month before you get paid again.

Just like creating a budget plan for the 1st paycheck, you will do the same again. Prioritize any fixed expenses first, then add in variable expenses or sinking funds to contribute to.

In order to make your budget as accurate as possible, you should account for fluctuations in your expenses. This is where the buffer comes in – you put a certain amount of money aside each month to cover any unexpected costs. Then, you can start planning for them in the upcoming months.

Once again, if you have leftover money after budgeting for the two weeks, you can either send it to your savings account or start paying down your debt. If you choose to save, make sure that the money is in a place where it will earn interest and grow over time. If you choose to pay down debt, make sure that the payments are more than the minimum amount due so that you can see results quickly.

Step 7: Start tracking

Now that you have your biweekly budget template set up, it’s time to start filling in the numbers and track your budget. This part can be a little tricky, but with a little effort, you’ll be able to save money and get ahead on your debt payments.

First, take a look at your income and expenses for the month. How does this compare to what you’ve budgeted? If you’re coming in under budget in some areas, great! You can either use this extra money to bolster your savings or make extra debt payments. However, if you’re over budget in some areas, don’t worry – we’ll work through that below.

Next, take a look at your sinking funds.

These are accounts where you save money each month to cover specific expenses. How much money do you need to save each month in order to cover your bills? If you’re not sure, take a look at your past bills and use that as a guide. Once you know how much money you need to save, divide it by two and put that amount into your biweekly budget.

This will help ensure that you always have the money you need saved when the bill comes due.

If you have any leftover money after filling in your budget, send it to savings or make extra debt payments.

You can also use this extra money to invest in yourself (by taking classes, for example), but be careful not to overspend!

Creating and sticking to a biweekly budget is a great way to start saving money and getting your finances under control.

Biweekly budgeting tips

When it comes to budgeting, biweekly budgets can be a helpful way to streamline the process. By taking an hour or so at the beginning of each month to set up your budget, you can avoid potential headaches down the road.

It’s also important to remember to write everything down! This includes both fixed and variable expenses.

Tip #1 – Change Due Dates of Bills

If you’re having trouble with your bills, don’t hesitate to call companies and ask them to change the due dates.

This is something I do whenever I open a new credit card. I want the credit card date to close at the end of the month.

Tip #2 – Age Your Money

You may also want to save up for one month’s worth of expenses so that you always have a cushion in case something unexpected comes up.

This is also the first step to stop living paycheck to paycheck.

When you have a cushion of savings, you’re less likely to fall into debt if something unexpected happens.

Tip #3 – Track Your 2 Week Budget

There are plenty of tools for budgeting out there. In fact, here are the best budgeting apps available.

It offers a variety of helpful tips for getting started, as well as ways to automate time-consuming tasks. With this tool, you’ll be able to improve your budgeting and financial insights in no time!

Many popular options include a budgeting app, Excel, or Google Sheets. Pick what works best for you

Tip #4 – Focus on Your Goals & Finances

In order to be successful, you’ll need to set financial goals for yourself and make plans to achieve them.

As with any other goal, it’s easier said than done! It can take a lot of time, work, and effort to reach your goal.

If you’re not sure where to begin or what goals are right for you, here are some examples:

This is just a sample of the types of goals you can set. If you’re not sure where to start, just think about what’s important to you and your family.

What are some financial goals that you have? Write down your goals and make a plan to achieve them.

What to avoid when you’re paid biweekly

When you’re paid biweekly, there are a few things you should avoid in order to make the most of your money.

You need to learn which payment type is best if you are trying to stick to a budget.

Since biweekly budgeting can be more difficult, you need to know the pitfalls to avoid.

Pitfall #1 – Spending All your Money Too Quick

First, don’t spend your money as soon as you get it. This will leave you with nothing left for the following two weeks.

When having to use one paycheck to cover most of your big expenses like mortgage/rent or insurance, that leaves very little money for groceries or gas

Try to have a savings goal and save for that.

For example, don’t wait until the end of the month to spend all your money. This can help you save more money and have something left over at the end of the month.

Pitfall #2 – Forgetting Bills

Second, don’t forget to budget for bills and other expenses. Make sure you have enough money to cover your costs, especially those non-frequent bills like car registration.

By doing this, you’ll be able to ensure that you have enough money each week to cover what you need.

Pitful # 3 – Quit Bi-Weekly Budget Completely

Yep, I get it budgeting your paycheck over a 2-week budget is difficult. It may feel like pushing a square through a circle. It takes a different mindset and a little more planning to make it happen.

If anything, try to avoid impulse buys. Wait until the next paycheck and see if you still want the purchase. That will help you not to overspend on unnecessary items.

What to do when you have a third paycheck?

This is the BEST benefit of a biweekly paycheck. Twice a year, you will receive 3 paychecks in a month instead of just two.

Looking forward to having a third paycheck, you can either save it or spend it.

If you save it, you can use it as a down payment on a house or invest it in a retirement fund. If you spend it, you can use it to pay down debt, remodel a house, buy a new-to-you car, or go on a vacation.

There are a few things you can do when you have an extra paycheck:

Use it to pay down debt: If you have high-interest debts, using your third paycheck to pay them off can save you a lot of money in the long run.
Invest it: If you’re comfortable with taking on some risk, investing your extra paycheck could lead to bigger returns down the road.
Sinking Funds: Those yearly expenses can weigh heavily on your budget. So, set extra money aside for those payments.
Put the money towards your goals: Whatever your ambition is, here is money to help you get there faster.
Spend it on something fun: Obviously, this isn’t the smartest option, but if you’ve been working hard and deserve a little treat, go for it!

Just make sure that you’re not spending more than you can afford.

Free Printable Bi weekly Budget Templates

There are a number of different printable 2 week budget templates that can help you get your finances in order. Most of them are simple and easy-to-use, and they’re not scary to look at. In addition, many of them have templates that you can download and/or punch holes into so that you can use them as binders or notebooks.

One great option is the budget tracking worksheet. This cute template is simple yet effective, and it will help you track your spending each month.

How do you make a monthly budget with biweekly pay?

There are a couple of ways to make a monthly budget if you receive biweekly paychecks. You can either budget by paycheck, divide out your expenses between biweekly paychecks, or focus on a monthly budget.

If you choose to budget by paycheck, you’ll create a new budget for each pay period and then stick to it. This method gives you a better understanding of the flow of money in your bank account and will help you keep track of your bills more carefully.

The other option is to budget monthly, which is for people who live paycheck to paycheck. In this case, you would budget off 24 paychecks and make plans for your two budget paychecks. Then, two of your paychecks would be budgeted for the monthly budget.

However, many people argue the Budget-By-Paycheck method can help reduce stress since it allows for more flexibility.

In either case, it’s important that you track your spending throughout the month so that you can make adjustments as needed.

Time to Create Your Bi weekly Budget Calendar

This budget will be a little more complicated than your monthly budget because your paychecks are not always going to be paid on the same day of the month. However, most of your bills are usually fixed and don’t change from month to month.

So, you need to plot out which bills you will pay with each paycheck ahead of time in order to make sure you have enough money to pay them all and keep them organized.

It is important to remember that when creating your budget, you need to give yourself some grace to make sure it works for you while you work on perfecting your budgeting style.

For us, having a buffer of money in our “income checking” account takes away the stress of bills and anxiety that we will run out of money. We understand that we need to use sinking funds for those variable expenses.

However, it is important to note that a biweekly budget tends to forget events such as birthdays or vacations from being considered in spending plans. So, make sure to include them.

Now that you have a good idea of how much money you make and how much money you need to live comfortably, it’s time to start creating your biweekly budget.

Also, taking time to understand your personal financial statement is important.

From all of the free and paid budgeting apps, here are our top budgeting apps to check out!

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Personal Capital Advisors Corporation (“PCAC”) compensates Money Bliss (“Company”) for new leads. (“Company”) is not an investment client of PCAC.

Personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more.

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Apache is functioning normally

June 5, 2023 by Brett Tams

Last Updated: May 25, 2023 BY Michelle Schroeder-Gardner – 65 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

Paying off debt is hard work. If paying off debt wasn’t hard, then everyone would be doing it.

You may come across many challenges, you may feel tired, and at points you may even feel defeated.

There are many things that may weigh you down when paying off debt. While thinking about this may seem negative, I think that today’s post can help you overcome difficulties that you may experience.

Instead of letting challenges that you face completely stop you from moving forward, you should know that many of the obstacles you come across are things that you can push past and move on from.

Too many stop their debt payoff journey because they feel as though there are no other solutions, that they are the only ones going through the process, and so on. However, that’s not true. Keep trying because you won’t get any closer to your goals if you stop now!

Plus, paying off debt is all worth it.

It may take a long amount of time and a lot of hard work, but try to remember that you can still have fun on a lower budget.

Below are some of the feelings you may experience when paying off debt and what you can do to change it around.

You may feel tired.

While you may feel tired of paying off debt right now, you need to remember that you won’t always feel this way and that it will all be worth it later.

Eventually, you will be able to get more sleep and you will be able to sleep better knowing that you won’t have debt hanging over your life.

The articles below may help you so that you are more motivated about paying off debt:

You may have to make sacrifices.

Sacrifices may need to be made when paying off debt. You may have to change your spending behaviors, avoid places like the mall, cut your expenses, and more.

While it may seem tough, especially in the beginning, it will get easier over time. If you fell into debt in the first place because your spending was out of control, then it may be even harder due to the fact that you may be used to spending more than you have.

However, that doesn’t mean that cutting back is impossible.

I recommend bookmarking your favorite debt blogs and podcasts, going on a no spend challenge, redoing your budget, looking for ways to make more money, and more.

Related:

You may be bored.

This is a feeling that many end up experiencing, but don’t let this one get you! There are many ways to have a great time on a low budget – even if you have no budget for fun at all.

You can take part in free events and festivals around your area, head outside for a hike, walk, jog, etc., go to your local library, use coupons, and more. Find more ideas at How To Have Frugal Fun.

You may feel like keeping up with the Joneses.

One thing that many find hard about paying off debt is that everyone around them is most likely still spending a lot of money.

It can be very tempting to stop your debt payoff journey and keep up with the Joneses around you. You may feel jealous and wonder why others can spend money when you cannot.

Well, looks can be deceiving. You don’t know what kind of financial situation that the other person is in. They may have more debt than you do!

There is no need to spend just to spend. You should make purchases that you actually want to make.

Next time you feel like you should spend money for no reason, you should stop and think about what’s actually bugging you and if you truly believe that spending money will cure whatever problem you are dealing with.

Paying off debt is all worth it.

Paying off debt can have many positives.

I paid off my student loan debt quickly and while it was extremely tiring, I wouldn’t change it for the world. There were many sleepless nights, 100 hour work weeks, and more, but I always reminded myself that this wouldn’t last forever and that it would be 100% worth it in the end.

There are many positives of paying off your debt. These include:

Happiness. No longer having debt means that you’ll have more money in your pocket. That makes everyone happy, right?!
No longer living paycheck to paycheck. By eliminating your debt, you will hopefully have learned better money management skill which will then allow you to start saving for other things in life such as retirement.
Feeling in control. Debt can make a person feel like they are controlled by lenders. By getting rid of debt, you will feel much more in control of your life and your financial situation.

How do you feel when you’re paying off debt? What do you do to remain positive? How do you think debt free life will be for you?

Apache is functioning normally

June 5, 2023 by Brett Tams

I’ve been traveling for more than a month now. While much of this travel has been for pleasure — I spent three weeks in Turkey with my cousin — there’s been plenty of work involved too. While I’ve been traveling, I’ve also been writing — and networking with other bloggers. Over the past month, I’ve attended two conferences, and spent three days meeting with folks in New York.

Note: Some of you have been craving more of my voice around Get Rich Slowly. That’s not going to happen. But if you’re really wanting to read what I write, check out More Than Money, where I’m writing about travel, blogging, and anything else that tickles my pickle.

FinCon 2012
In early September at FinCon 2012 (the financial blogger conference), I spoke about the future of financial blogging. While there, I reconnected with many of my colleagues, including Jim from Bargaineering, Flexo from Consumerism Commentary, Adam from Man vs. Debt, Ramit from I Will Teach You to Be Rich, Neal Frankle (the Wealth Pilgrim), and Kylie Ofiu (an Australian personal finance blogger).

At FinCon, I also met two new people who really impressed me.

First up was Pete, whom many of you know as Mr. Money Mustache. He has a hot early retirement blog, and for good reason. He offers solid advice in a strong personal voice. I loved his presentation at FinCon; his blogging philosophy and mine are closely aligned.

Second was Paula Pant, who writes at Afford Anything. Paula is remarkable for two reasons. First, she’s one of only a few female bloggers in a niche dominated by men. Second, Paula focuses almost exclusively on making money instead of saving it. Her blog is about building wealth, with a particular focus on rental properties. She’s sharp, and she now has me as a subscriber.

New York
After FinCon, I flew to Turkey to spend three weeks touring the country with my cousin. On my way home, I stopped in New York for business. I met with several colleagues, a few GRS readers, and my editor at Moneyland.

Also in New York, I practiced what I preach regarding conscious spending. You see, I’m a huge fan of musical theater. But good tickets to good shows on Broadway can be expensive. Very expensive. In order to be able to indulge my passion, I cut back in other areas.

For instance, I rented a cheap ($70/night) apartment on Airbnb and then walked everywhere in Manhattan. This saved me about $200 a day, money that I put into theater tickets. On Sunday, I joined Flexo (from Consumerism Commentary) and Ramit (from I Will Teach You to Be Rich) for a performance of The Book of Mormon, which was hilarious. I also saw Chicago (completely disappointing) and the achingly beautiful Once.

Sure, I had to stay in a tiny, tiny room (with barely room for a bed), but who cares? All I did was sleep there. With the money I saved, I had a great time in one of my favorite cities.

Note: On my last night, I had a beer with my hostess, a precocious young (26?) woman who’s found a clever way to reduce her cost of living. Rose’s apartment has three rooms. She lives in one and rents the other two out on Airbnb. “Are you able to keep the rooms rented?” I asked. She smiled and said, “My rent here is $3,600/month. Airbnb pays the rent for me.” Rock on!

Savvy Blogging Summit 2012
FinCon was fun, but I have to admit: My favorite blogging conference is always the Savvy Blogging Summit. Mostly, it’s attended by a group of remarkable women: stay-at-home moms who, in their spare time, blog about coupons, shopping, and other domestic concerns. They call themselves “dealbloggers”.

This topic may sound mundane, but more than any group I know, these savvy bloggers live the ideals I espouse everyday at Get Rich Slowly. Meeting these women is like seeing the Get Rich Slowly philosophy in action.

They actively work to keep their household expenses low.
They’ve found creative ways to boost their income. Most make money — sometimes a lot of money — from blogging. But I also talked to folks who earn income as spokeswomen, radio broadcasters, brand representatives, graphic designers, mobile app creators, and more.

And they do this all while raising families. In some cases, large families. These are stay-at-home moms who do a whole lot more. They aren’t just savvy bloggers; they’re also savvy entrepreneurs. (They’re also a hell of a lot of fun. They taught me to dance Gangnam Style this year!)

Early in the conference, I met John Saddington, an Atlanta-based blogger and entrepreneur. I’d never heard of him before Savvy Blogging Summit, but he and I had a chance to chat about business and blogging. I was intrigued by his vision, so I recruited him to help me present the “Blogging Exit Strategies” panel, which worked out well. I think the attendees got some great advice about building and selling a business.

Some of the other people I spent time with during this conference included:

Amy Gross from Vinesleuth, who has a free ebook called Dinner and Wine for $20 or Less.
Amber Bustanoby from Coupon Connections. Amber’s not just a coupon blogger; she can also bust a move on the dance floor.
Jennie Sanford from Bargain Blessings. I’d seen Jennie at three previous conferences but never talked with her before now, which is a shame. I want to chat with her more in the future.
Kimberlee, The Peaceful Mom, who taught me about Pinterest. (Sometimes I’m slow on the uptake.)
And on the plane from Atlanta to San Francisco, I spent five hours talking with Melissa Earl from Living a Frugal Life.

As always, I learned a lot at Savvy Blogging Summit, and did my best to impart some of my knowledge to others. I’ve already committed to speaking at SBS IV, which will be held next June in Cincinnati. I wouldn’t miss it.

Note: While in Atlanta, I reconnected with Paula from Afford Anything. I’d met her at FinCon at the start of the trip, and she was generous enough to offer me a ride. After picking me up from the airport, she showed me around Piedmont Park and told me all about her adventures in real estate. As I say, she’s sharp. If you’re interested in rental properties, you should read her blog.

Now I’m in San Francisco. Today, I’ll meet with the owners of GRS, have lunch at Twitter HQ, and stop by to meet the folks at Lending Club. Tomorrow, I get to meet my girlfriend’s family and friends.

I’m nearing the end of this marathon month-long trip, and thank goodness. I’m too old for all this travel!

Source: getrichslowly.org

Apache is functioning normally

June 5, 2023 by Brett Tams

How do you choose a mutual fund? But first, is it time for you to start investing? You may be asking the question – should invest while you’re still in debt? Or, perhaps – what is enough emergency savings before investing? These can be challenging questions to answer, but in general, you should invest as early as possible in life to maximize growth, especially if you can get a 401(k) match by your employer.

Priorities Before Investments

However, if you’re in debt and have minimal or no savings, you’ll want to work on those goals as a top priority. Only invest up to the point of getting an employer match if you can still make forward progress on these top priorities. Certainly you want to build emergency savings and get out of debt as quickly as possible to avoid missing out on investing and the magic of compounding.

Mutual Fund Investing

Now, assuming it’s the right time for you to invest, let’s talk about investing in mutual funds. Dave Ramsey always suggests buying a good growth stock mutual fund. But, is this advice enough for everyone?

Obviously, you can buy indivdual mutual funds, but most commonly mutual funds are offered as investment choices in your company 401(k) or IRAs. Some people prefer to using a broker or advisor to help them choose mutual funds. However, some more daring individuals who like some excitement prefer to choose funds on their own. Actually, these people, who invest well, invest the time to consider many aspects to mutual fund investing.

If you choose to invest on your own you’re going to be faced with a lot to consider. So, the rest of this post serves to give you a brief overview of some considerations and hopefully, spark your interest in learning more before making what can be a costly investment decision.

Note: I’m not a broker or financial advisor, so I’m far from an expert when it comes to recommending investments or all the ins and outs. These considerations are some things I’ve learned along the way and have found in reading articles, so definitely conduct your own research.

What to Consider in Choosing a Mutual Fund

Your Goals and Risk Tolerance

The first thing you’ll want to do is to evaluate your investment goals. Ask yourself the following questions: How old are you and how long do you have until you retire? What is your risk tolerance? What is your investment objective – growth, income, preservation of assets?

Answers to these questions will help you decide on the right type of fund(s). Certainly, some funds offer more rewards, but have greater risk. Generally, speaking there are equity funds, bond funds and money market funds.

Money market funds are generally safe places to put your money, but don’t offer great rewards. However, as a short-term investment instrument, they will typically offer better returns than a savings account.

If you’re looking for income you might consider bond funds. Bond funds invest primarily in government or corporate debt. However, they aren’t without risk. If interest rates go up bond funds decline in value.

Equity funds invest in corporate stocks with an objective of longer term growth of your investment. You can understand there are many different types of companies, so there are also many types of equity funds based on investment styles and size.

Expenses

Mutual fund expenses may include management fees, administrative fees, distribution fees and other expenses. Obviously, it’s important to make sure you find funds that keep these costs to a minimum as they can eat into your return over time. Make sure you check the fund prospectus to learn about the fees. According to Motley Fool –

Index funds typically charge about 0.20% of the assets, and actively managed funds currently average about 1.5% per year. The average fee, by the way, has actually been climbing in recent years. Any fund that has fees above 1% per year can be expected to under perform the total returns offered by an index fund.

Sales charges

A sales charge, or mostly commonly known as sales load is a commission you pay to a broker when the broker recommends a mutual fund. You can pay a front-end sales load (when you purchase the fund) or a back-end sales load when you redeem the shares. You may have heard paying sales charges isn’t worth it. I’ve always been given this advice and according to Motley Fool this advice is accurate.

You should be aware that there is no real difference historically between the performance of load funds and no-load funds in terms of year-to-year performance.

As in the past, I’ll continue to avoid funds with a sales loads. Just be careful as I’ve found the whole process of understanding sales charges (and expenses) can be quite confusing.

Turnover

Just as you’ve probably heard it’s not wise to buy and sell your investments all the time, you don’t want your fund doing the same. You’ll want to know how much your fund is turning over investments each year. Look for funds with a lower turnover percentage. 100% means they sell everything and buy new stocks each year. More turnover usually means more expenses. Just like it costs you to buy and sell, it costs the fund too.

Management

Management of the fund is important. For example, you don’t want a fund manager who is inexperienced. Perhaps a brokerage company is trying to test a new fund manager and review performance. But, why would you want to let them conduct that experiment with your investments? You wouldn’t, so read up about the management, their history and how long they’ve been with the fund. Look at how long they’ve been managing the current fund and if they’re fairly new you may want to consider another investment.

Performance and Volatility

Basically, volatility is when your investment moves up and down. For some mutual funds it can be a roller coaster ride which may not be so much fun for you. It’s common for your investment to fluctuate, but at the same time, according to Forbes, you don’t want to see large swings. You can avoid volatility by diversifying with different types of mutual funds. For individual funds, take a look at the best years and worst years and decide if there is too much fluctuation for your liking. Obviously, a long-term perspective on investing may help lessen the emotions of volatility.

Don’t get hung up on looking at great returns over just a few years. They investments can be the next big thing, but not do so well after 5 years or more. Rather, I like looking at a funds performance over at least a 5 year span of time. 10 years is even better. You can also compare the fund to market indexes such as the S&P 500. Ideally, you want to perform at or better than such an index.

Study

Finally, if you want to do your own investing, you need to study. Read the prospectuses. If you’re going to choose a fund, you need to spend the time to know the information discussed in this post as a good starting point. Sure, mutual fund investing in itself is diversifying which helps reduce risk, but don’t fool yourself. Mutual fund investing still involves a lot of risk, so the best bet is to invest in different types of funds to stay well diversified and get a steady return on your money.

What do you think about these tips? Are there any you would add to the list?

Other Helpful Sources

Source: biblemoneymatters.com

Apache is functioning normally

June 5, 2023 by Brett Tams

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Apache is functioning normally

June 5, 2023 by Brett Tams

It might sound easy enough to do, but many parents actually don’t know the best way to save money for kids or, at the very least, where to start.

I am not saying my ways are the best, but they certainly work for me and my little ones. Depending on your current financial situation, they might help you figure out the best way to save money for your kids.

Using these tips has helped me come up with a way to secure a better financial future for my kids without overstretching or causing unnecessary financial strain in the now.

Why Is It Important to Save Money for Our Kids?

Healthy savings will get them off on the right foot when they leave home to start a life of their own, increasing their potential for a successful future.

The money savings process provides a platform to impart financial literacy, teach financial responsibility from a tender age, and teach discipline when it comes to things like budgeting and delayed gratification.

The savings also functions as an emergency fund should anything happen to us or our kids while they are still growing up. You will enjoy the peace of mind of knowing they are cared for in the case of almost any eventuality. A will or inheritance fund ensures the savings will be spent wisely for the benefit of your kids.

Your Best Practice Guide to Saving Money for Kids

Here are some excellent tips on the best way to save money for kids.

Define Your Savings Goal

The ideal savings option will vary for different parents based on their financial goals and circumstances. Motivation ranges from emergency funds to specific stages of the child’s future, like higher education, buying their first car, or even jump-starting retirement savings. Define what you are saving for, set targets, and draw up a plan.

Set Up a Savings Account(s) for the Kid(s)

Approach your preferred financial institution and set up an account designed for the savings you settled on. Similar solutions are structured differently across each financial institution.

Budgeting

As parents, we budget all the time. Budgeting is a great way to improve money management, ensuring you always leave something for your kid’s savings account (and your own fun fund for date night or vacation). Many sources of funds can be included in the savings plan.

You can set it up so that an amount is transferred from your own bank account to the kid’s account. Some parents, myself included, also deposit their work bonuses in their kids’ savings accounts up to a predetermined date.

Alternatively, you can agree to collect all the money the children earn from chores, lawn mowing, babysitting, or other side jobs they do on their own and then set that money aside in their savings accounts after giving them a weekly stipend for their hard work, of course.

Financial Education

All this planning and investment can be undone if your kid grows up without the financial education to develop positive money habits. Involve them in your financial planning at a young age so they grasp the concept of money. Teach them your ways, one might say.

Financial literacy involves more than what children learn from listening and observation. It involves practicing positive money management habits like restrained spending, taming the urge for instant gratification and budgeting.

Add a checking account to their savings account so they get used to financial tools like a debit card for younger kids and banking apps for teens. Most of these allow the parents to keep an eye on the child’s spending habits, too, so we can easily reign things in if they start running wild.

What Is the Best Way to Save Money for a Child?

Now that you are familiar with the territory, let’s look at the options available as our kids outgrow the piggy bank we have been filling with spare change since they were babies.

College Savings Plans

College is quite expensive, and it pays to have a head start on your child’s college savings so there is adequate time to accumulate funds gradually. A good education increases your child’s earning potential and job security, leading them to financial success.

The 529 Investment Plan

A 529 Investment Plan is a tax-advantaged investment account designed to encourage saving toward future education expenses. It’s named after Section 529 of the Federal Tax Code and is sponsored by the state or a state agency.

Savings are tax-deferred, and you can withdraw the funds tax-free to pay for qualified education expenses like tuition, books, and accommodation. It lets you save for your child’s future attendance at designated colleges or universities at prevailing rates.

Custodial Accounts

A custodial account offers another opportunity to save on your child’s behalf or gift them when you get a bonus or any other windfall. One party, the custodian (typically the parent), controls the funds on behalf of the minor (the beneficiary), who will gain access to the account when they come of age (this ranges from 18 to 21, depending on the state).

As a custodian, you are free to spend the funds on anything, provided it is for the benefit of the minor. While they don’t come with the tax benefits of a 529 plan, they cover a wider scope of expenses. Once your child attains the required age, you will relinquish control of the account to them, and they can claim full use of the funds.

Uniform Transfers to Minors Act (UTMA) Accounts and Uniform Gifts for Minors Act (UGMA)

UTMA and UGMA accounts are popular examples of custodial accounts. They are set up to hold gifts that a minor has received. Once the gift is granted or transferred to the account, it can’t be revoked and becomes the minor’s asset. It is held under their social security number and taxed as their income.

Custodial Brokerage Account

A custodial brokerage account refers to when the custodial account is used as an investment account to increase savings. Savings and gifts can be channeled to a mutual fund, invested in stocks or bonds, transferred to money market accounts or any other credible investment. You will manage these investments until your child comes of age. And then it is up to them to take over.

Creating a Trust Fund for Your Child

You can always get a lawyer, an accountant, or a team with both professions to set up a trust fund for your kid(s). Besides savings, the trust fund can incorporate assets you want to transfer to the kids as they age. The trust will dictate the process and ensure your assets are transferred to the right beneficiaries when the time comes.

How to Save Money for Kids in a Nutshell

There is no limit to the number of savings accounts you can have for your child. It is actually encouraged to spread your eggs in different baskets so that you can optimize them.

One might have competitive interest rates, while another allows you to invest in assets. You can also save for a particular item that requires a separate account without locking out subsequent gifts.

Just identify the combination that works for you and make sure you teach them about other aspects of financial health as they grow, and you can cross one more thing off your list of worries as a parent. Happy savings!

Source: pennypinchinmom.com

Apache is functioning normally

June 5, 2023 by Brett Tams

It might sound easy enough to do, but many parents actually don’t know the best way to save money for kids or, at the very least, where to start.

I am not saying my ways are the best, but they certainly work for me and my little ones. Depending on your current financial situation, they might help you figure out the best way to save money for your kids.

Using these tips has helped me come up with a way to secure a better financial future for my kids without overstretching or causing unnecessary financial strain in the now.

Why Is It Important to Save Money for Our Kids?

Healthy savings will get them off on the right foot when they leave home to start a life of their own, increasing their potential for a successful future.

The money savings process provides a platform to impart financial literacy, teach financial responsibility from a tender age, and teach discipline when it comes to things like budgeting and delayed gratification.

The savings also functions as an emergency fund should anything happen to us or our kids while they are still growing up. You will enjoy the peace of mind of knowing they are cared for in the case of almost any eventuality. A will or inheritance fund ensures the savings will be spent wisely for the benefit of your kids.

Your Best Practice Guide to Saving Money for Kids

Here are some excellent tips on the best way to save money for kids.

Define Your Savings Goal

The ideal savings option will vary for different parents based on their financial goals and circumstances. Motivation ranges from emergency funds to specific stages of the child’s future, like higher education, buying their first car, or even jump-starting retirement savings. Define what you are saving for, set targets, and draw up a plan.

Set Up a Savings Account(s) for the Kid(s)

Approach your preferred financial institution and set up an account designed for the savings you settled on. Similar solutions are structured differently across each financial institution.

Budgeting

As parents, we budget all the time. Budgeting is a great way to improve money management, ensuring you always leave something for your kid’s savings account (and your own fun fund for date night or vacation). Many sources of funds can be included in the savings plan.

You can set it up so that an amount is transferred from your own bank account to the kid’s account. Some parents, myself included, also deposit their work bonuses in their kids’ savings accounts up to a predetermined date.

Alternatively, you can agree to collect all the money the children earn from chores, lawn mowing, babysitting, or other side jobs they do on their own and then set that money aside in their savings accounts after giving them a weekly stipend for their hard work, of course.

Financial Education

All this planning and investment can be undone if your kid grows up without the financial education to develop positive money habits. Involve them in your financial planning at a young age so they grasp the concept of money. Teach them your ways, one might say.

Financial literacy involves more than what children learn from listening and observation. It involves practicing positive money management habits like restrained spending, taming the urge for instant gratification and budgeting.

Add a checking account to their savings account so they get used to financial tools like a debit card for younger kids and banking apps for teens. Most of these allow the parents to keep an eye on the child’s spending habits, too, so we can easily reign things in if they start running wild.

What Is the Best Way to Save Money for a Child?

Now that you are familiar with the territory, let’s look at the options available as our kids outgrow the piggy bank we have been filling with spare change since they were babies.

College Savings Plans

College is quite expensive, and it pays to have a head start on your child’s college savings so there is adequate time to accumulate funds gradually. A good education increases your child’s earning potential and job security, leading them to financial success.

The 529 Investment Plan

A 529 Investment Plan is a tax-advantaged investment account designed to encourage saving toward future education expenses. It’s named after Section 529 of the Federal Tax Code and is sponsored by the state or a state agency.

Savings are tax-deferred, and you can withdraw the funds tax-free to pay for qualified education expenses like tuition, books, and accommodation. It lets you save for your child’s future attendance at designated colleges or universities at prevailing rates.

Custodial Accounts

A custodial account offers another opportunity to save on your child’s behalf or gift them when you get a bonus or any other windfall. One party, the custodian (typically the parent), controls the funds on behalf of the minor (the beneficiary), who will gain access to the account when they come of age (this ranges from 18 to 21, depending on the state).

As a custodian, you are free to spend the funds on anything, provided it is for the benefit of the minor. While they don’t come with the tax benefits of a 529 plan, they cover a wider scope of expenses. Once your child attains the required age, you will relinquish control of the account to them, and they can claim full use of the funds.

Uniform Transfers to Minors Act (UTMA) Accounts and Uniform Gifts for Minors Act (UGMA)

UTMA and UGMA accounts are popular examples of custodial accounts. They are set up to hold gifts that a minor has received. Once the gift is granted or transferred to the account, it can’t be revoked and becomes the minor’s asset. It is held under their social security number and taxed as their income.

Custodial Brokerage Account

A custodial brokerage account refers to when the custodial account is used as an investment account to increase savings. Savings and gifts can be channeled to a mutual fund, invested in stocks or bonds, transferred to money market accounts or any other credible investment. You will manage these investments until your child comes of age. And then it is up to them to take over.

Creating a Trust Fund for Your Child

You can always get a lawyer, an accountant, or a team with both professions to set up a trust fund for your kid(s). Besides savings, the trust fund can incorporate assets you want to transfer to the kids as they age. The trust will dictate the process and ensure your assets are transferred to the right beneficiaries when the time comes.

How to Save Money for Kids in a Nutshell

There is no limit to the number of savings accounts you can have for your child. It is actually encouraged to spread your eggs in different baskets so that you can optimize them.

One might have competitive interest rates, while another allows you to invest in assets. You can also save for a particular item that requires a separate account without locking out subsequent gifts.

Just identify the combination that works for you and make sure you teach them about other aspects of financial health as they grow, and you can cross one more thing off your list of worries as a parent. Happy savings!

Source: pennypinchinmom.com

Apache is functioning normally

June 5, 2023 by Brett Tams

Getting life insurance is an important part of most any good – and complete – financial plan. By having this important coverage, you can help to ensure that your loved ones won’t need to face financial hardship in the event of the unexpected.

These proceeds may be used for a variety of situations, including the payment of funeral and final expenses, the payment of large debt obligations such as a mortgage balance, and / or for paying ongoing living expenses. This can be especially beneficial if your loved ones count on you for some or all of their financial support.

When applying for a life insurance policy, it is essential to understand what type of coverage you are purchasing. The amount of life insurance protection is also paramount so that you can ensure that loved ones will have enough to provide for their needs. However, another key factor to be aware of is the insurance carrier that you are obtaining the policy through.

In this case, you will want to know that the insurance carrier is strong and stable financially, as well as that it has a positive reputation for paying out its claims to its policyholders. One company that ranks highly in this area is Allianz.

The History of Allianz Life Insurance Company

Allianz Life Insurance Company is a leading provider of life insurance, as well as income-producing products and overall retirement solutions. This company has been in the business of offering products to its customers for more than 115 years.

This company has held strong through both bull and bear markets – and it consistently has received high ratings from the insurer rating agencies. Because of this, customers who own insurance and financial products from Allianz can be more assured that the company will be there if or when the time comes for filing a claim.

Allianz has a conservative investment philosophy that is diversified across a variety of different asset classes. The company, when investing for its portfolio, seeks long-term financial results.

A Review of Allianz Life Insurance Company

Today, Allianz Life Insurance Company has more than 85 million customers around the world. The company is considered to be the 31st largest company worldwide, and it is the world’s third-largest money manager. It is also the second largest company in the diversified insurance industry, based on both market value, as well as on assets. In 2015, Alliance Life collected more than $11 billion in life insurance premiums.

It is the company’s overall cash reserves that allow it to back its insurance guarantees. As of year-end 2015, Allianz held more than $7.5 billion in equity. Therefore, the company can help to ensure that the funds and the policies that are entrusted with it will be there when the money is needed the most.

Allianz Life Insurance Company’s Ratings and BBB Grade

Due to its strong financial backing, Allianz has been given high marks in terms of its overall financial strength ratings. These include the following:

A+ (Superior) from A.M. Best
A2 (Good) from Moody’s
AA (Very Strong) from Standard and Poor’s

Allianz is not presently an accredited company of the Better Business Bureau (BBB). However, the BBB has provided Allianz Life Insurance Company of North America with a grade of A+. This is on an overall grade scale of A+ through F. The company, over the past three years, has closed no complaints via the Better Business Bureau. And, there are no customer reviews for Allianz that are posted on the BBB’s website.

Life Insurance Products Offered By Allianz

Allianz Life Insurance Company offers a wide variety of life insurance products. Because of that, its customers are able to find the type of coverage that can best fit their need – and policyholders can also revise their coverage should their ongoing needs change.

There are numerous benefits to owning life insurance coverage. The funds that are received by the policy’s beneficiary are income tax-free. This means that, instead of having to pay a large portion of the proceeds to Uncle Sam, 100 percent of these funds can be put to work by your loved ones for paying off debt, paying ongoing living expenses, or any other potential need that they may have.

With permanent life insurance coverage, there is both death benefit protection, as well as the ability to build up a nice amount of savings through the cash-value component of the policy. Here, funds are allowed to grow on a tax-deferred basis. This means that there will be no taxes due unless or until the money is withdrawn. Money may be either borrowed or withdrawn from the cash component of a life insurance policy for any reason – including the supplementing of retirement income, the payoff of debt, and / or for taking a nice vacation.

One of the primary forms of life insurance coverage that is offered via Allianz Life Insurance Company of North America is fixed index universal life. This type of coverage offers a flexible death benefit option, as well as the ability to earn interest in the cash component that is based on a variety of crediting methods and index allocation options. These policies also offer additional riders that may be added. Doing so may help to provide more customized life insurance protection to policyholders. The life insurance plans that are offered by Allianz include the following:

Allianz Life Pro+ Fixed Indexed Universal Life Insurance Policy

This policy begins with an income tax-free death benefit. It also provides the opportunity to accumulate cash value based on positive changes in the underlying market index of the policy. Riders are available to help policyholders with meeting specific needs.

Those who are age 80 and younger are eligible to apply for this policy. Although there are several different risk classes. These include:

Juvenile – For age 0 to 17
Tobacco – For ages 18 to 75
Non-tobacco – For ages 18 to 80

The minimum amount of death benefit on this policy is $100,000, and proceeds may be applied for up to $65 million. There are also several different ways in which the death benefit on this policy is structured. For example:

Level – With the level death benefit option, the amount of coverage will remain the same throughout the life of the policy.
Increasing – With the increased death benefit option, the death benefit amount will be equal to a specified amount, plus the accumulation value.
Return of Premium Option – There is also a return of premium option available. With this option, the death benefit will be equal to a specified amount, plus the amount that the policy holder paid into the policy.

If the insured lives to age 120, the death benefit amount will equal the amount of the policy’s accumulation value. At this time, no additional premiums will be accepted by Allianz, unless they are deemed as necessary for keeping the policy in force.

There are some indexes that may be selected with this policy. These include the Barclay’s U.S. Dynamic Balance Index ll, the S&P 500 Index, or a blended index that includes the Dow Jones Industrial Average (DJIA), the Barclay’s Capital U.S. Aggregate Bond Index, the Russell 2000 Index, and the EURO STOXX 50 Index.

There are also several additional riders that may be placed on this policy to help with customizing the plan to best fit a policy holder’s specific needs. These are:

Waiver of Specified Premium Rider
Convertible Term Rider
Enhanced Liquidity Rider
Loan Protection Rider
Child Term Rider
Additional Term Rider
Other Insured Term Rider

Allianz Life Pro+ Survivor Fixed Index Universal Life Insurance Policy

The Allianz Life Pro+ Survivor Fixed Index Universal Life Insurance policy is a good and cost effective way to insure two individuals at the same time. The proceeds of this policy will be paid out upon the death of the second insured. This type of plan can be more cost effective than the purchase of two individual life insurance policies. Also, in the event that an insured is diagnosed with a terminal or a chronic illness, a portion of the policy’s benefits may then be accessed.

Those who are between the age of 30 and 80 are eligible to apply for this particular plan. The death benefit amount starts at $100,000 and can go to $65 million, within certain guidelines. There are different options for how the death benefit will be structured, which include level, increasing, or a return of premium option. There are also optional riders available, including:

Chronic Illness Accelerated Benefit Rider
Terminal Illness Accelerated Benefit

Other Products Offered

In addition to just life insurance coverage, Allianz also provide other types of financial and income tools. These include:

Annuities

Allianz provides retirement annuities to its customers, as these products can help to ensure that they can receive ongoing income – regardless of how long they may live. The company offers several different types of annuities so that clients may choose the one that will be best for their goals. The types of annuities that are offered are:

Fixed Index Annuities – A fixed index annuity offers returns that are based on an underlying market index. If for example, the index performs well during a given period, then the value of the account will rise, up to a stated cap or percentage. If, however, the underlying index performs poorly in a given period, then the value of the account will not endure a loss, but rather will typically be credited with a 0% for that period. These annuities also allow for tax-deferred growth inside of the account, meaning that there is no tax due each year on the gain until the funds are withdrawn. When the annuity is converted over to income, annuity holders will have several options for how – and how long – they wish to receive the payout. One of these is the lifetime option, which will pay out an income for the remainder of the individual’s life, regardless of how long that may be. In many cases, another individual such as a spouse or partner may also be able to receive lifetime income from the annuity as well.
Variable Annuities – A variable annuity has its funds invested in sub-accounts, which can typically include equity options such as mutual funds. Here, the opportunity to earn a nice return is available. However, due to potential market volatility, there is also more risk with this type of annuity.
Index Variable Annuities – An index variable annuity will also allow its holder to participate in potential market gains, yet with a level of protection against market downturns.

Allianz also offers a myriad of retirement planning tools. These include materials that can help individuals and couples to plan for the future, as well as financial calculators to help determine if you are on track.

How to Get the Best Life Insurance Premium Quotes

When shopping for a life insurance policy quote, it is typically best to work with either a company or an agency that has access to more than just one single life insurance carrier. This way, you will be able to more directly compare the benefits, the companies, and the premium prices that are available to you.

If you are ready to move forward, we can help. We work with many of the best life insurance companies in the marketplace today, and we can provide you with the details that you need. All you have to do in order to get started fill out the form on the side of this page.

We understand that purchasing life insurance can seem a bit confusing. But we can help you to ensure that you are going in the right direction with the type of plan that you choose, and the premium that is charged. So, contact us today – we’re here to help.

Source: goodfinancialcents.com

Apache is functioning normally

June 4, 2023 by Brett Tams

Many people want to get better about budgeting but don’t know where to begin. Some people will like using apps, others the envelope method, but others may find that a basic online spreadsheet is the best way to keep track of the money coming in and going out.

Here, you’ll learn how to easily do that last option using Microsoft’s Excel spreadsheet program. It has some impressive features that can make it user-friendly and efficient as you budget. It can help you manage your money and hit those financial goals.

Step 1: Opening a Workbook and Creating the First Month

To begin creating a budget, the user will open a fresh Workbook in Excel by hitting File > New > Blank Workbook. Before diving into building the perfect budget, they need to save this file somewhere safe. After completing the first draft, it may be worth it to back it up on a USB drive or on a cloud-based platform. After saving the file, they’ll move on to building out the budget.

One way to keep track of this monthly budget, and review past months’ spending and saving progress is to create a tab for each month of the year. For extra convenience, the budgeter could consider beginning by creating a “template” tab to build the initial budget in and then copy it over each month and edit it as needed.

💡 Quick Tip: If you’re saving for a short-term goal — whether it’s a vacation, a wedding, or the down payment on a house — consider opening a high-yield savings account. The higher APY that you’ll earn will help your money grow faster, but the funds stay liquid, so they are easy to access when you reach your goal.

Step 2: Adding Income

Before creating a spending budget, the user will start by looking at expected income for the month. Doing so makes it easier to formulate a budget that is realistic, making them more likely to stick to it. To begin building the proper formulas to help calculate income, the user will take the following steps:

Select cells A3-A11 (if more space is necessary later on, expand this selection past A11) and hit “Merge and Center.” Then write the word “income” and center it.

Merge the cells B3 and C3. Label these cells as “Source” which will show where the income is coming from. Some may have consistent income sources such as “Paycheck 1” and “Paycheck 2.” Others may have more sources they need to track “Side Hustle Income” or “Unexpected Income.” After choosing income sources and properly labeling them, merge every row from B and C through row 11 or whatever the chosen stopping point is.

While not necessary, one can label cell D3 “Date” which is where the budgeter can track which day they received a type of income. If they have predictable sources of income, this option may not be worthwhile, but for those with flexible incomes (say, seasonal workers who earn an hourly rate or entrepreneurs), it can help them stick to a budget and follow up on missing payments.

For the final step of the income section of the budget, which is more of a benefit to those with varying monthly income, label section E3 as “Planned” to identify what the originally planned income is. Then label F3 as “Earned” to identify how much money was in fact earned from each labeled source of income. For G3, label it “Difference.” This cell will automatically calculate the difference between the expected income and the income actually earned after adding the proper formula.

To create the formula needed to automatically track the difference between expected and earned income, add the formula “=SUM(F4-E4)” after every row it should apply to. Then replace the F4 and E4 with the cells that correspond to the “Earned” and “Planned” income sections.

💡 Quick Tip: When you overdraft your checking account, you’ll likely pay a non-sufficient fund fee of, say, $35. Look into linking a savings account to your checking account as a backup to avoid that, or shop around for a bank that doesn’t charge you for overdrafting.

Step 3: Adding Expenses

After wrapping up the income section of this project, the budgeter can start planning what their typical monthly expenses may look like. (Make sure to add those commonly forgotten expenses, too.) They can do this on the same tab that they calculated their income in or they can create a separate tab. How they organize their budget is totally their call!

They’ll use the same format for building out expenses as they did with their income (although if they choose to continue working in their original sheet, they’ll need to adjust the row letter and column number accordingly) and will name this section of the budget “Expenses.” Using the same labels from the income section is fine, as is creating new ones.

They’ll only have to make one major change to this process, which is to use a different formula for the “Difference” column. In order to best calculate expenses, they can use the following formula: “=SUM(Planned Number-Actual Number)” which will calculate how much they overspent.

When creating spending sources, instead of income sources, they can make as many or as few as they’d like. For example, someone may want to make one row that represents all utilities or they may want to designate a row for every single utility they pay. Another budgeter may want to budget for overarching categories such as living, automobile, entertainment, food, travel, and savings. It really depends how detailed someone wants to get about their budgeting.

For those drawn to a more detailed budget, they can create multiple sections for their expenses, they don’t have to be all lumped together. It’s fine to repeat this process again and again to create more detailed categories such as basic living expenses or business expenses.

Recommended: 15 Causes of Overspending

Step 4: Adding Some Goals

For those who want to expand their budgets past basic incomes and expenses, they can repeat the process used to create the income section of the budget and make some more specific savings goals.

One way would be to create a category that tracks how much they hope to save that month in general, another would be to break it down by savings category. Similar to expense sources, it’s possible to break goals down into separate sections, such as one that provides a more detailed look at saving for retirement or tracks a big expense they’re saving for, such as a down payment on a home or a wedding.

Using the same basic formulas for tracking expected income and how much income is actually earned in a month, the user can track what they hope to save and how much they actually do end up saving.

💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.

Step 5: Customizing a Premade Template

If someone’s not interested in learning how to create a budget in Excel from scratch, they can use a premade budgeting template provided by Excel or one of the many free or for-purchase options that are available online.

Even when using a premade template, it can be helpful to review the tips for creating an Excel budget from scratch shared above, as they may allow the budgeter to customize the template to their needs.

At the end of the day, creating a template from scratch will allow the user to truly customize it to their needs, especially if they follow a particular budgeting method. That being said, a template can save a lot of time, especially for those who aren’t comfortable using Excel.

Step 6: How to Track Spending and Stick to a Budget

For those who have been hard at work creating their Excel budgets, it’s time to take advantage of that budget. It seems unlikely that anyone wants their Excel efforts going to waste, so one might want to make a budgeting check-in plan that they can easily stick with.

At the end or beginning of every month, it is a good idea to sit down and review if one went over or under last month’s budget, as well as take some time to build out the new month’s budget. That may involve simply copying over the template created earlier or the user might need to make a few tweaks based on how much they earned and spent last month.

As tempting as it can be to set it and forget it, the budgeter should try to check in on their budget more than once a month. Setting a quick weekly check-in date with their budget will allow them to update how much they’ve earned and spent so far during the month. That way, they’ll know if they need to scale back on spending in a certain category or if they can relax in another category.

While it takes a decent amount of self discipline and motivation to stick to a budget, awareness can be the first step in staying on track. By checking in with their budget frequently, savvy planners will remember their short-term goals and longer-term ones and hopefully will be a little extra motivated to meet them.

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The Takeaway

There are many effective budgeting tools, and using an Excel spreadsheet can be one of them. It can allow you to track your income and your spending and saving, while making updates in real time. This can help you manage your finances and contribute to meeting your financial goals.

Better banking is here with up to 4.20% APY on SoFi Checking and Savings.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com

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Summary

Read more:

What is a biweekly budget?

Difference between biweekly and semi-monthly paychecks

How does a biweekly budget work?

How to create a biweekly budget

Step 1: Print out a calendar

Step 2: Put in a buffer

Step 3: Organize expenses

Step 4: Focus on Zero Based Budgeting

Step 5: Write your first biweekly budget

Step 6: Write Your second biweekly budget

Step 7: Start tracking

Biweekly budgeting tips

Tip #1 – Change Due Dates of Bills

Tip #2 – Age Your Money

Tip #3 – Track Your 2 Week Budget

Tip #4 – Focus on Your Goals & Finances

What to avoid when you’re paid biweekly

Pitfall #1 – Spending All your Money Too Quick

Pitfall #2 – Forgetting Bills

Pitful # 3 – Quit Bi-Weekly Budget Completely

What to do when you have a third paycheck?

Free Printable Bi weekly Budget Templates

How do you make a monthly budget with biweekly pay?

Time to Create Your Bi weekly Budget Calendar

You may feel tired.

You may have to make sacrifices.

You may be bored.

You may feel like keeping up with the Joneses.

Paying off debt is all worth it.

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Life Insurance Products Offered By Allianz

Allianz Life Pro+ Fixed Indexed Universal Life Insurance Policy

Allianz Life Pro+ Survivor Fixed Index Universal Life Insurance Policy

Other Products Offered