• Blog,  Save Money

    10 Top Ways on How to Save Money for Big Events

    There are so many ways on how to save money, regardless of the process or method used, this can easily mount to huge savings.

    Saving money for significant life events, whether it’s a dream vacation, a wedding, a down payment on a home, or a major milestone like starting a family, is a journey that requires careful planning and financial discipline.

    While these events can be exciting, they often come with substantial price tags, making it essential to create a financial strategy that allows you to save efficiently and reach your goals faster. In this guide, we will explore ten top ways to save money for big events. These strategies encompass a wide range of financial tips and techniques, from setting clear savings goals and creating a dedicated savings account to minimizing unnecessary expenses and maximizing your income.

    Whether your dream event is on the horizon or still in the distant future, these insights will empower you to take charge of your financial future and make those significant life milestones a reality without unnecessary financial stress.  This article will showcase how to save money for different events in your life.  More frequently than ever, there are testimonies on how people have saved a large amount of retirement from modest earnings.  This is so fascinating because you will encounter stories on how someone makes above six-figures and hardly making ends meet  The differences in the two scenarios is the ability to implement effective methods on how to save money.

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    1. How to Save for Retirement

    The idea of saving for retirement is sometimes an after-thought. The power of compounding interest has created modest earners into millionaires. The best-known figure who has used this method is Warren Buffet. Below are the best ways to save

    • Participate in 401(k) – do not leave money on the table from your employer
    • Contribute to Your in IRA – there is a maximum amount per year to contribute
    • Tax Deferred – qualify for tax breaks (defer paying taxes until withdrawal)
    • Reduce Your Brokerage – understand and reduce your brokerage fees
    • Withdrawals – avoid early withdrawal because this creates additional penalties
    • Automation – automate your savings and any amount is a good amount
    • Diversification – invest in low index fund, it has great a diverse portfolio
    • Dividend Stock – participate in dividend stock (some live off dividend income)
    • Real Estate – convert a bedroom and rent on Airbnb and rent it as a corporate suit 

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    2. How to Save Money for a Car

    Down payment – put as much down payment as you can as this lowers the monthly payment

    • Refinance – shop around for the cheapest interest rate
    • Cash Car – better to save and pay cash for the car than a monthly payment
    • Lease Owned – when it comes to money matters, it may be best to own or refinance to own than leasing.

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    3. How to Save Money for College

    This is one of the most challenging aspect of debt management. Especially with the current job market where skill set or demand are rapidly changing. The best way to save money in college is to create habits that support money management skills. Below are some examples:

    • Don’t buy new textbooks
    • Don’t  miss out on a scholarship
    • Plan your meals & cut dining out
    • Use college amenities e.g. Gym
    • Opt for streaming service & cable
    • Use student discounts when applicable
    • Find a job that helps with tuition reimbursement
    • Get a bank account designed for college student especially credit unions
    • Sell your used books on Amazon / eBay  you make more than your local bookstore
    • Plan your courses in advance and get your books from the library or a previous edition instead of buying them

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    Related articles on How to Improve Your Finances 

    4. How to Save Money for a House

    This is one of the most pinnacle assets you will own, therefore, it is best to set time and do proper research before you purchase. Below are some best practices to follow: 

    • Refinance your mortgage for a cheaper interest rate
    • Get rid of your PMI once your balance is below a certain balance
    • Make an extra payment towards your principal as much as you can
    • Borrow from your budget – you may want to cancel some wants and only
    • Side Job – best to pick up extra side jobs to meet your goal, no job is too small
    • Use 0% credit card to massively pay down your debt. This option is to curate borrowing money with no interest payment. Be mindful of the fine print and when you get charges for interest
    • Retirement – you may want to reduce your contributions for some time and fund your down payment account
    • Aim to save more than the required payment. Open a new bank account where you just save for your down payment and automate your savings
    • Research and itemize all the cost for you to close your house such as inspections/ closing cost etc
    • Maximize your savings – you may need to move to a cheaper house in order to save as much as you can 

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    5. How to Save Money for a Wedding

    Saving for a wedding is a big obstacle and can end up costing more than the original budget. The hardest part is paying back thousands of dollars way past the wedding.  Try not to bring debt into a marriage.  Below are some best ways to save for a wedding

    • Sell as much as you can after the wedding
    • Don’t invite the whole town – small and intimate
    • Get married at the end of the season – prices are cheaper
    • Use a venue that is the same as the ceremony and reception
    • Don’t get married during the weekend – this creates big savings
    • Use in-season flowers or fake ones (they look like the real flowers)
    • Get your cake from the grocery store- yes they do wedding cakes
    • Get your dress from the past season there are many clearances going on
    • Shop during the most discounted times, such as Black Friday or Cyber Monday
    • Be Bride Model – approach wedding companies and let them feature you as part of their brand. This allows you to get free stuff. (doing this you have to be savvy and plan way ahead)

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    6. How to Save Money for Social Activities

    Part of life is enjoying and exploring new places through vacations, but this can clearly this can be costly if you are financing your excursions through credit card. There are numerous ways to enjoy outdoors, vacation or entertainment activities at a lower cost. Below are some examples

    • Gifts – create a family spending or limit on gifts
    • Newsletter – claim or request rebates or coupons from the company directly
    • Rewards Cards – you can use your rewards points towards travel or concerts
    • Arts & Culture – there are many museums where they offer low priced or free admissions
    • Vacation / Travel – it is best to travel during the off-season as there are fewer people and rates are much lower
    • Sign Up for Discount  Apps –  eg Groupon / LivingSocial  / or set Google alerts for free activities in your neighborhoods

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    7. How to Save Money Questions

     

    What Is Saving? 

    Saving is normally referred to as money set aside for long term keeping with a goal in mind such as investing. Usually, saving is defined as amount left over after expenses have been paid, but this can be defined in terms according to your finances.

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    How Do You Save Your Money?

    The best way to save money is to create a budget and then aggressively payoff any outstanding debt. Debt is the most expensive expense and truly drains your savings.

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    What are Examples of Savings?

    There are many variations and types of savings. The best type of saving is one that fits your budget and goals. Below are some types of saving

    • basic savings account
    • Investment account
    • targeted date savings

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    What is The Purpose of Savings 

    The main purpose of saving is to have your money grow and set aside for any unexpected expenses or emergencies. Most people have various savings account targeted for various expenses, such as property taxes, vacations or colleges. This method helps in separating funds for each goal.

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    What are the Types of Saving?

    There are different financial instruments that can be used as a savings tool. All are effective in their own specific way and importantly can be used for different goals. Below are some types of savings account:

    SAVINGS ACCOUNT – this is the most basic account and does has little interest rates

    HIGH YIELD SAVINGS ACCOUNT – usually this requires a set amount to even open the account, but interest rate is higher than a basic account.

    MONEY MARKET ACCOUNTS – these tend to have similar functions of a savings account and the interest rates are higher. They have limited amount of times per month you can withdraw.

    CERTIFICATE DEPOSIT – this type of account requires you to put money aside and commit it for a specified amount of time such as 6 months to years for a higher amount of interest.

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    What are the 3 Basic Reasons of Saving Money

    There are many reasons to save money but the most 3 basic reasons of saving money includes:

    PURCHASING POWER – The more you save the greater your purchasing power, this in clearly exercised when purchasing a home. The higher your down payment, the better your rates will be.

    SECURITY – This is one of the most desired reasons of saving, having the ability to provide a security blanket for yourself and family, regardless of any emergencies that may arise such as losing a job, medical bills or other expenses.

    WEALTH BUILDING – This is clearly the best way to accumulate wealth. A higher network is calculated by having more assets than expenses. The more savings at your disposal, the more disposable funds you have for investing.

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    What is The Best Savings Account to Open?

    The best savings account is any account that has great interest rate. The best savings account to open is the one that meets your financial goals and has great offers. Each savings account is not created equal, therefore a through investigation is required.

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    How Much Should You Have in a Saving Account?

    There are many different types of savings account and they come with different demands. For your most liquid savings account, it is best to have about six months worth of expenses. Thereafter, your other savings goals can be saved in different accounts such as retirement and or college funds.

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    What is Better Than Savings Account?

    There are many financial instruments, but the ones that are better than a savings accounts, have a better interest rates and your money is still secure. Below are some examples where your money can earn slightly more than a basic savings account

    • certificate deposit
    • peer to peer lending
    • high yields savings account
    • or investments that have higher returns

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    Is it Better to Save than Invest?

    It depends upon your goals.  For instance, when do you need the money. If you do need the money as soon as possible, therefore, it is much better to invest than save as you earn a higher rate of return.

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    Summary

    Success is an intentional act. You have to create your VISION, then plan out your GOALS. You will FAIL more than you will SUCCEED, but be careful not to stumble on stones and conclude that is where your journey ends.

    .

    Cheering To Your Success
    Brenda | www.DesignYourFinances.com
    Let’s Connect on Social Media! | Pinterest | 

     QUOTE OF THE DAY 

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  • Blog,  Save Money

    8 Life Changing Tips on How I Got a Six Figure Raise

    Climbing both the corporate ladder and salary increment can be very difficult. The majority of the workforce that is in the Six Figure Range, usually have many years behind them. Honestly speaking, waiting for 15 years to get into the Six Figure Range was not an option for me.

    It was difficult, discouraging, hard-work, mindset challenging – (a lot of 3 steps forward and 5 steps back) but through it all, I Was Determined!

    After the degrees and comparison to the current market value, I quickly realized that to get into the six figure reach, I had to construct my own career and think outside the box.

    Yes the degrees were great but I quickly realized that I had to be more specialized, well trained and become a subject expert in a particular subject for me to get the six figures because just my degrees were not enough.

    The hard question was in what field should I invest in. Below are the steps and actions I took to reach my financial goal and yes, it was not straight forward, as much of life is not. There were many different factors to consider such as, if its a remote position, do I start at a low level, how much experience do I need to acquire before I get the job and most importantly how soon do I get to the six figure ranch. All factors considered, I choose the path with least resistance and it took 8 months of hard work to get the six figure increment.

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    1. Education

    I have 3 degrees, after my 2nd Masters, I was so thrilled to be part of the finance profession. I went through the normal interview process and was selected for the Senior Position. The department was centered around improving your skills and was surrounded by professional veterans in the industry who would constantly share their knowledge.

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    2. Realization

    I was so happy in my position and wanted to grow with the company. There was an anniversary lunch for one of the Senior Managers, in her speech she stated that she had been with the company for 25 YEARS!!  I was NOT patient to wait for 25 years for her position, I needed to find a way to get promoted, both position and salary.  My conclusion, it was time to get a promotion as well as the salary.  Below are the chain of events.

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    3. Inventory of My Skills

    The first step was to take an inventory of all my skills, listed my degrees and the courses I took. I went through all my M.B.A & M.A.F.M courses, then listed all the courses that were relevant to the next position. The objective was to gain additional experience without changing jobs. For instance, if my next desired position was Senior Accountant, below is the framework I used 

    • Desired Job Title – Senior Accountant 
    • Department – Position in the Vice President’s office 
    • Relevant Degree Courses– Financial Analysis, Accounting and Wealth Management – current trend analysis, forecasting & budgeting, financial reporting, cost analysis etc 
    • Application – I highlighted how my degree courses that were an asset in the next position because the Position required that knowledge base 
    • Job Responsibility – I made a list of all the responsibilities that the new Position required. I googled similar positions and used the company’s internal job posting boards and made a list of the job descriptions and started to work on showcasing my qualifications & experiences 
    • Relevant Experience –  I researched the different reports that the Comptroller did each month and focused on the ones that I knew I could do.  I spent my time learning how to research, made presentations, understanding the data and creating the reports, tying it with the courses from my degrees. I would go to lunch with the current Comptroller and would subtly ask questions. My main goal was to understand the process and the blueprint of his job. 
    • Qualification – I had monthly meetings with my Senior Manager and when I was ready I asked if I could help the Comptroller (usually I would ask if she had 5 minutes on Friday and came with a list of questions, I was PROACTIVE) at the end of the month any Accounting department scrambles for time as they race to finish the reports, so my help was welcomed.  I was in the door, in the Vice President’s office who manages a billion-dollar brand, and she knew my name!
    • Results – after 3 months, my supervisor the Senior Manager received an email that the Vice President’s office would like for me to be in charge of the documents that we publish to the shareholders (these are SOX Documents since it’s a public company). I was now getting emails from the Vice President’s office to be included in their meetings!!
    • Analysis – The good thing was I now had experience in the Vice President Office, Comptroller Office and contributed in Business Strategies. I was able to participate in Job Position Rotation – this allowed me to get more experience under my belt. My experience was now beyond current Job Position.
    • Reality – I was thrilled for a short time, the work was becoming too much, as I was still in my old position with additional duties, my goal was to have a PAY INCREASE and NOT be overwhelmed with deadlines. This was becoming more than I could handle. I was practically now working in two departments, with two sets of deadlines, two supervisors BUT One Paycheck.  

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    Related articles in increasing your bottom line:

    4. Six Figure Journey  

    Discovery

    I found out the Accounting and Finance departments worked hand-in-hand with Technology (as most departments do) The end users in Technology were not so familiar with Accounting Rules and Regulations and constantly needed their input. I researched top Consulting Firms in the world (Big Four), I found an entry point where I could get highly compensated and duties at a larger scale. For instance, JD Edwards-Oracle Software (for it to function for the Accounting or Finance department, it has to be customized. The customizations, happen in the IT Department)

    Back to the Drawing Board 

    I started researching top compensating jobs in Accounting and Financial Firms, Internal & External Job Boards. I was able to get an outline of the top paying jobs in my industry and cross-industries. The new obstacle was to identify the skills needed to qualify for the six-figure positions. My Grad School Counselor provided great information and insight such as a list of courses, skills needed and different career paths. This information allowed me to find cheaper institutions to enroll in and get practical experiences.

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    Implementation 

    This was the hardest part, it was 3 steps forward and 5 steps back. I was constantly fighting with my decision and always reminding myself of the goal. How could I go back to school yet I had 3 degrees? Everyone around me did not understand my decision and worst, did not support it. I had to create an environment to allow successful results, I took classes, before and after work, did my homework during lunchtime in my car. I acquired the necessary certifications. The Vice President’s Office offered me a promotion, which was just a change in title but the same compensation, I then decided to leave my job for a better PAYING ONE (hindsight – it was the best decision I made. I created a new career path and that lead me to start my own businesses) 

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    Preparation

    Now that I had the skills, I studied my new Desired Job. I created a new email address and started to receive email alerts of the desired jobs. Below are some tips I applied:

    • I compared the Desired Job at different companies
    • Applied my educational, academic and professional knowledge to the Desired Position
    • Made a list of what skills the hiring companies wanted (both practical and interpersonal)
    • Researched white papers in my industry and case studies, current financial news, sources, regional and global business trends, threats strengths and opportunities, (SWOT), solution-based methodologies, project managing, 
    • Made a list of sample interview questions and created impactful answers based on the industry and my research
    • I benchmarked my research with what the LinkedIn Recruiters, Big Four or Job Boards and other top financial firms were looking for my new set of skills (I had acquired the skill set, it was now a matter of packaging and presenting my qualifications, a simple resume was not enough)

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    Presentation

    After months of preparation I was now qualified, I had the skillset, understood the job requirements and could execute the processes and blueprint of the job. I now had a solid understanding of my Desired Job and I was able to build my new skills-set on top of my transferable skills from different spheres. I was now a well-rounded candidate and my resume clearly exhibited my accomplishments. TIP –  I did not only sent my resume, I also included:

    • Professional Portfolio
    • Case Study Analysis
    • Current Market Research and Business Strategies

    I then reached out to recruiters, introduced myself and how I was qualified for the position. I sent them my Professional Package (that showcased how I resolve, manage and lead various projects)

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    5. The Six Figure Salary  

    Six-Figure Salary

    Within a week I was able to secure interviews with many recruiters. I got interested in one particular company which is the Top Consulting Firm in the world. The interview process took 5 months, 7 interviews and it was always a conference setting of at least 4 people. I was glad that I took the time to study the industry, current market trends, and events. GUESS WHAT — I NAILED IT!!  

    After the last interview, before I left, they offered me a job and I negotiated a higher salary because I knew what I was worth. I was now a CONSULTANT, I traveled the world with this job, worked for Fortune 500 Companies, with great responsibilities and career growth.

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    Lessons 

    It took a lot of work, failure, being discouraged, I had two Master’s Degrees and yet I was going back to school. My peers from my old job, would not understand why I would torture myself by going back to school. I had the qualifications to look for another job in the same industry, BUT I WANTED MORE and I ACHIEVED IT.

    Summary

    Success is an intentional act. You have to create your VISION, then plan out your GOALS. You will FAIL more than you will SUCCEED, but be careful not to stumble on stones and conclude that it is where your journey ends.

    Cheering To Your Success
    Brenda | www.DesignYourFinances.com
    Let’s Connect on Social Media! | Pinterest | 

     

     QUOTE OF THE  DAY 

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    6 Reasons Why Online Business Fail

    Why Online Businesses FailStarting an online business has recently become much easier and more profitable. 

    There are numerous reasons why online businesses fail, but most of the reasons are solely based on how much effort and planning is put into the process.

    The aggregated advantages of an online business are more than those of a brick and mortar, but the failure rate is very crippling.

    Tips to Consider:
    Create a Brand Identity
    Create a Business Plan
    Understand Your Niche Market
    How Your Service or Products are Different

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    7 Top Qualities of Successful Entrepreneurs

    Successful entrepreneurs have numerous good traits, but the most that tend to take precedence include, Getting a Plan, Getting Started, Staying Motivated and Being Accountable.

    Success is never easy to accomplish so fail fast and get back on track, achieving success in any aspect of life there has to be a need for change followed by an implemented action. Success is intentional, your desire has to be cultivated by executable goals.

     Below are some qualities that successful achievers have:

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  • old Money Tools

    5 Top Secrets of a Millionaire Mind

    Top 5 Secrets of a Millionaire Mind A millionaire mind includes tenacity, dedication and sheer hard work as their driving force. When it comes to the creation of wealth, they have a different attitude and approach.

    The surest way to any form of success includes:
    Researching,
    Outline Goals,
    Implementation,
    Execution and Revision, if needed.

    Read More
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