Helping You Define Your Lifestyle

Effective Ways To Save For Your IRA

Retirement is a very important goal to save for. You need to make a call as to how to save your funds for retirement, whether it be in dedicated account like an IRA or in a 401K through your job or some combination. The potential for growth in compound interest is great, so that means that you need to be able to put as much money into them as possible.

Which is why you need a monthly budget and you need to stick to it. Budgets are great tools for keeping track of your monthly cash flow, income and investments. And once you get past the psychology of not being able to think about money, it can really help your spending habits. Because it provides a chance to prioritize what you value and what you need to spend money on.

First of all, pay yourself first. You need to have money in savings in order to invest in an IRA or some other account. So you need to be disciplined about saving money for yourself and your family. Bills, food, cars and entertainment all have their place, but paying yourself first needs to come first. And it is great to be able to automate it. When you create a regular transaction from your regular account to a savings account, that means it happens without thinking about it. You can also automate savings straight to your IRA.

Use multiple savings accounts. You need to have places to put money for emergencies, major purchases and regular expenditures. That way you always have a place to save your money.

How do you get that extra money? Look for a raise at work. You need to be able to talk to your boss about getting more money when you think you deserve it. It can be a hard conversation at first, but you can really increase your income the more you do it and the better you get at asking for raises. Keep an eye out for bonuses as well. If you budget correctly, found money like that can go straight into your IRA.

Then you need to look at your expenses. Do you need both a cleaning service and a landscaping service? Figure out which one you can live without and cut that one. How much do you spend on groceries each month? Where are ways you can cut that down? You can cut coupons out of the newspaper and figure out more economical ways of getting proper nutrition. Cheap protein, like eggs and beans are always a good solution.

Look at your local library. There are always great books there, but you can also find movies, TV shows and documentaries that you can borrow for free. That might provide a chance to break down your cable bill and allow you to cut the cord.

The ability to save for your IRA can be learned. You don’t have to be a natural saver. You can change your habits if you put the effort in. Learn how to cook more and learn where you can invest wisely to replace your job income with passive income. That will allow you to make more money, have more time and save for your IRA.

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5 Time-Tested Strategies for Financial Success

Financial Success

There are no short cuts to achieving financial success. To build, preserve and expand wealth that lasts you a lifetime, you must follow some proven principles. Here, we’ve compiled a list of 5 of the essential strategies you should make a part of your financial short and long-term plan to help you build your own financial success.

1. Set up a brokerage account

As soon as you’ve opened a bank account and signed up for your company’s retirement savings programme, jump on the next stage of smart wealth building by setting up a brokerage account. With it, you will be able to invest in stocks of different companies, no-transaction-fee mutual funds, as well as exchange-traded funds, which most people can’t access with their 401(k). 

To give you a quick guideline, opening an account with an online broker, Fidelity requires you to start with a deposit of $2,500; while at Charles Schwab, you’ll need only $1,000, which is not compulsory if you signed up for automatic monthly deductions of $100 or more from your account. For better money management and investment planning, it’s advised you go with a debit card that helps you with that goal in addition to making transactions convenient. 

2. Ensure your investing costs are at a minimal level 

Generally, less expenditure means more money in your account. As a fund investor, focus on ETFs and mutual funds with low expense ratios. As we already pointed out, the first thing to do is to register with a reputable online broker such as Fidelity or Charles Schwab so you can buy and sell stocks averaging $7 per trade. Besides, there are top discounters that allow you to trade select ETFs without requiring sales fees. Seriously consider index funds, especially those that track S&P 500, with estimated annual fees of 0.05%. Funds like Mairs & Power Growth (MPGFX) and Dodge & Cox Stock (DODGX) are recommended as they are top low-cost actively managed funds. 

If you have a fund manager, you’ll probably pay an annual consultation fee of 1%; but you can always negotiate for a lower fee. Another option is to go digital with an AI adviser, which can help manage your stock portfolio by using digital technology. An example is Wealthfront, which will not charge you a management fee if your balance is less than $10,000 and requires you to pay only 0.25% per annum for sums above that. You may also check Betterment, which levies just 0.25% of assets under management yearly. 

3. Diversify your investment 

Spreading out your investment with a variety of good value stocks and bonds can help you weather the storms of volatile periods and enhance your long-term ROI outlook. If, for example, your retirement is at least ten years away, keep 70% of your investments in stocks and put 30% in top-quality bonds. Mutual funds are good great for you too. For example, mutual fund managers, Vanguard Wellington (VWELX) keeps two-thirds of investments in stocks, as a principle, and the rest in bonds; and it has maintained a yearly return of 8.2% over the past 20 years. 

4. Rebalance, retarget and realign as necessary 

It’s important you get regularly balance your portfolio up for better overall performance. Move your investment assets around sometimes, divesting some funds off the ones performing well and shoring up the laggards to get a good mix. Always review your brokerage statements at least twice a year to see where your portfolio needs some rebalancing, retargeting or realignment and then go on to make the necessary trades. 

5. Adjust your investments

As your countdown to your retirement, your target should be an investment portfolio that gives you a good return that can stand the tide of inflation and also minimises your risk.  A spread of 50% stocks, 40% bonds and 5% cash is a nice mix that can help you achieve that goal. A mix of 60% stocks and 40% bonds and cash will likely give more growth; but if your risk threshold is less, then try a mix of 60% bonds and cash and 40% stocks.

Living with Depression: How to Keep Working

Living with Depression

In recent times, depression has become one of the most talked about mental illnesses that affect people in ways that no one could have foreseen.  It is easy to get disillusioned especially after you try for a long time and constantly fail to shake that dreadful feeling away

When your depression starts to creep into your work, it is the cue for you to shake things up a bit and try something new. Here are the things that you can do to make sure that you are not crippled by your depression at work.

1.  Break Up Work into Smaller Chunks

When you are depressed, you will find yourself settling for just being able to make things works. However, you will need to do more than just make things work. At some point, you will have to show up to work and get tasks accomplished. 

However, as you very well know, depression tends to scatter your concentration and suck away your energy. So, how do you keep yourself focused and energetic under these conditions?

Break up tasks into small ‘bite-sized’ bites and then work on them that way. Completing achievable goals will give you a sense of satisfaction.

2.  Work Does Not Make Depression Go Away

No doubt, you have heard people tell you or other depressed people, that if you get into something productive, you will not have time for depression. You hear it so much; it starts feeling as if it might be the elusive solution you have been looking for. 

However, this is far from the truth. Productivity will only do so much to distract you from the real problem. You will need to make sure that you are not duped into buying into this false philosophy. Do not fight fire with fire. While it will likely help distract you for a short period, it will not work a long-term cure or solution.

3.  Speak Openly About Your Depression

There is the potential that being open about your depression at work will have some disadvantages that you will not want to deal with. It has been proven, however, that speaking about it is much better than sitting on it and many workplaces now are very open to helping those affected with mental health problems.

1 in 4 people in the lifetime will have a mental health condition which means, realistically speaking, that in an office of 80 people 20 of those people will suffer from a mental health condition at some point.

When an employer or manager is made aware of the situation, they will accommodate the little things that you may miss, and you might even get perks like working from home when you feel like you cannot make it work.

4.  Personalise Your Workspace

It is always great to work in an environment that makes you feel comfortable and welcome. There is a lot that goes into making your space your own. You can start with lighting, colours and noise minimisations. All these things can affect your mental health without your realising it. Go for anything that makes you comfortable and positive. Add plants, family pictures and anything that makes you smile. If you do not want noise, you can get noise-cancelling headphones to block everything out and make yourself focus.  

To Sum Up

It is possible that you can be depressed and still function well. High-functioning depressives can juggle everything that demands attention and still have time to work on themselves. It all has to do with finding the right lifestyle, starting to operate with the right habits and then going for professional help. Medical care and therapy only help when you are doing more than just waiting for pills to kick in or things to get better.

Accept your depression – then challenge it!