Should You Save or Pay Off Debt?

By Sandra Block, From Kiplinger's Personal Finance

Saving for long-term goals tends to take a back seat to expenses such as child care, groceries and health insurance. And if you’re also paying off debt, saving for retirement and college may get pushed to the curb. 

But putting off saving for retirement until you’re debt-free could cost you the most valuable asset you have: time. Thanks to the magic of compounding, even small contributions to a 401(k) or similar retirement plan will grow significantly, especially if your company matches contributions. If you can’t come up with enough money to hit the annual limits, or even close to them, “at least contribute enough to get the match,” says Sheryl Garrett, founder of the Garrett Planning Network.

Saving for college isn’t as pressing as saving for retirement or paying off credit card debt, says financial planner in Charlotte, N.C. “It’s nice if you’re able to save something for your children’s education, but the biggest priority should be taking care of your needs. You can’t borrow for retirement. You can for college.” As for getting rid of the credit card debt, “I think that trumps saving for education.”

Cheryl Sherrard, a certified

To free up more money for savings, pore over your expenses for ways to cut; look at how much you pay for your cell-phone plan, cable package and restaurant meals. Use the extra money to “really attack your debt. Go at it with guns blazing,” says Garrett.

Prioritize your debts. Start with credit card debt, which you should pay off as quickly as possible. Paying off a card with an 18% interest rate is the equivalent of earning an 18% return. Be wary of transferring your balance to a card carrying 0% interest, says Garrett. Ask yourself whether you’ll have the discipline or ability to pay off the balance before the rate goes up; if not, you’re back where you started. “The only way I’d advise people to switch to a 0% or teaser rate is if they have a plan to truly attack the debt and get it paid off by the end of that term.”

Read more at http://www.kiplinger.com/article/saving/T025-C011-S002-save-or-pay-off-debt.html#IeFhGBmhrcldQ18T.99

Have More, Need Less: The Simple Guide To Saving

 Mitch Tuchman Contributor, Forbes.com

Do you save enough? Congratulations, no need to read the rest of this article.

Okay, for the 99.99% of you still reading, take heart. Saving is one of those things that’s hard at first, then becomes easier and easier in time.

Why so hard? Because saving is a form of self-denial. Yes, a vacation would be fun right now, but saving adequately means putting off that weekend getaway. A new car might drive a little better, but buying used or driving your current car longer is likely a better use of your money.

Take a look at your paycheck. You’ll notice that there are a number of fixed deductions built right in. Federal and local taxes, for instance. Social Security and Medicare payments.

Do you see a line that says “Your Retirement” on your check? You should. If not, it’s time to walk over to human resources and fix that. Getting an automated savings system in place is the hard part, but it will become easier, and sooner than you think.

Here are the three key steps to saving more for your future:

1. Pay yourself first

That’s the automatic retirement deduction into your 401(k) at work. People often aim for a percent of their paycheck, but be careful not to pick a comfortably low figure. Save enough that it actually hurts at first.

Over time you will adjust to a high savings number. You are also likely to get raises. You are unlikely, however, to voluntarily raise your savings level soon. Better to bite the bullet now.

2. Pay less taxes

This goes hand-in-hand with using a 401(k) or IRA to save for retirement. Every dollar you take out of your check now grows tax-free over decades. It lowers your tax bill today and, presumably, will result in lower taxes in the future when you begin to take retirement income out.

The assumption is that your cost of living in retirement will be lower, since you are not likely to be making fixed payments such as a mortgage or saving for college for your kids. It’s a win-win, and paying less taxes today makes it easier to set the savings bar higher, earlier.

Read the full article online.. 

6 Totally Unsolicited Tips for My Little Brother on Graduation Weekend

Nate Green, The Huffington Post

My little brother is graduating college this weekend, which makes him the first person in my immediate family to do that. It's a big accomplishment. So, naturally, I wrote him a list of six tips he didn't ask for and will probably ignore.

You know. To celebrate.

1. Learn how to make one amazing breakfast.

Why breakfast? Because you can eat it any time of the day.

Check it:
Breakfast -- Breakfast
Lunch -- Breakfast
Dinner -- Breakfast

In fact, breakfast for dinner is a truly amazing experience. Whenever I eat eggs and bacon at 8 p.m., I feel like I'm breaking some sort of antiquated rule and sticking it to The Man.

"Take that, society!"

But... what to cook? I suggest starting with scrambled eggs. But not the flaky, crumbly kind. I'm talking about the slightly-runny good kind.

A few tips:
Get a non-stick pan.
Use butter instead of olive oil.
Get a rubber spatula. (Not the kind you flip burgers with. Amateur.)

2. Learn how to make one amazing cocktail.
Why a cocktail? Because you can drink it any time of the day.

OK, I'm kidding. No cocktails in the morning. (Except for brunch.)

Anyway, knowing how to make a good cocktail is like having a superpower. One that makes you look cool in front of girls and livens up any party.

Plus, you'll have a valuable skill for when you're sitting at home alone trying to figure out what the hell you want to do with the evening (or your life).

Start by learning how to make a Manhattan. Why?

It's a classic cocktail, the ingredients are easy to find anywhere, and it's really, really hard to screw up.

3. Ask more questions (especially when you meet someone for the first time).

At some point you'll be in a situation where you'll have to talk to people.

Repeat after me: Small talk sucks.

So, a few rules: No talking about the weather. No asking how many brothers and sisters somebody has. No asking where they grew up.

Instead, show an actual interest in the person.

You're graduating with a degree in journalism for chrissakes. Put it to use.

Ask questions. Lots of them.

By asking questions and listening, people will begin to feel like you really understand them. They'll trust you. They'll see you as an ally.

That's important, because it gives you an opportunity to learn how to help that person and add value to their life.

And value for them means value for you. Eventually.

4. Once you find something you're interested in, go deep.

Maybe it's learning how to start a business or a blog. Maybe it's learning Spanish or yoga. Maybe it's learning something so crazy I can't even think of an example right now.

Whatever it is, if you're into it, go deep.

Learn everything you can about it. Research the history. Practice it incessantly. Find the best in the world at it and see how they do it.

It won't take over your life. Usually just a few weeks. Or months. Or years.

But by then, it'll be so second-nature it'll just bleed into other parts of your life and become a part of your identity.

That's usually a good thing.

Read the full article online...