cash - Whole Hearted Way https://www.wholeheartedway.com Meditation instruction for those who cannot meditate Thu, 24 Sep 2015 05:13:19 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://i0.wp.com/www.wholeheartedway.com/wp-content/uploads/2021/07/cropped-Fern.jpg?fit=32%2C32&ssl=1 cash - Whole Hearted Way https://www.wholeheartedway.com 32 32 195550711 Interest Rate Scare! https://www.wholeheartedway.com/interest-rate/?utm_source=rss&utm_medium=rss&utm_campaign=interest-rate Thu, 24 Sep 2015 05:13:19 +0000 https://www.wholeheartedway.com/?p=1690     Whew!   Everyone was expecting an interest rate increase… but it didn’t happen. Now what? For Banks: They can’t raise the rates on those variable rate mortgages and other loans For consumers: You continue to get low interest rates Considering that consumers are saving more and have more in the bank (or credit unions) than ever before. Why save? You save to get ahead of taxes and inflation, but you also save to have emergency cash when: Your roof starts leaking You get laid off Your car breaks down And any other times when you need cash fast and don’t want to sell an investment to pay for it. So what’s enough? For pre-retirees, 2 years cash in the bank to draw from right after retirement reduces their need to get cash from investments and let’s the investments start to grow. For Self- Employed folks, about 1 year gross income in cash (just in case there is a downturn in business). For Most of Us- 6 months gross income in cash reserves is good. But what about those dismal returns? Shop around at places like BankRate to get the highest interest on your savings Ask- that’s right – ask your bank for a higher interest rate-  (after all, you are a good customer). Shop right- get compounding daily and high APR and withdrawal flexibility. Trade off features to get what you want at the maximum rate. How much should you be getting to get ahead of taxes and inflation? Read this excellent article by Barbara O’Neill, Extension Specialist in Financial Resource Management,Rutgers Cooperative Extension, to do the simple math which is inflation over 100 minus your tax bracket. Breaking even with taxes and inflation rates are the starting point from which you invest. Try to get your cash savings close to that break even point.

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Whew!  bigstock-Business-woman-watering-money--43264861
Everyone was expecting an interest rate increase… but it didn’t happen.
Now what?

For Banks:
They can’t raise the rates on those variable rate mortgages and other loans

For consumers:
You continue to get low interest rates

Considering that consumers are saving more and have more in the bank (or credit unions) than ever before. Why save?

You save to get ahead of taxes and inflation, but you also save to have emergency cash when:

  • Your roof starts leaking
  • You get laid off
  • Your car breaks down
  • And any other times when you need cash fast and don’t want to sell an investment to pay for it.

So what’s enough?

For pre-retirees, 2 years cash in the bank to draw from right after retirement reduces their need to get cash from investments and let’s the investments start to grow.

For Self- Employed folks, about 1 year gross income in cash (just in case there is a downturn in business).

For Most of Us- 6 months gross income in cash reserves is good.

But what about those dismal returns?

  • Shop around at places like BankRate to get the highest interest on your savings
  • Ask- that’s right – ask your bank for a higher interest rate-  (after all, you are a good customer).
  • Shop right- get compounding daily and high APR and withdrawal flexibility. Trade off features to get what you want at the maximum rate.

How much should you be getting to get ahead of taxes and inflation?

Read this excellent article by Barbara O’Neill, Extension Specialist in Financial Resource Management,Rutgers Cooperative Extension, to do the simple math which is inflation over 100 minus your tax bracket.

Breaking even with taxes and inflation rates are the starting point from which you invest. Try to get your cash savings close to that break even point.

The post Interest Rate Scare! first appeared on Whole Hearted Way.

]]> 1690 Do-It-Yourself Financial Plan Step #1 -Cash & Credit https://www.wholeheartedway.com/do-it-yourself-financial-plan/?utm_source=rss&utm_medium=rss&utm_campaign=do-it-yourself-financial-plan Fri, 23 Apr 2010 00:04:45 +0000 https://www.wholeheartedway.com/?p=457 Do-It-Yourself Financial Plan Step #1,  Cash and Credit Cash flow is where you start. You may not think that you have cash flow but if you are earning money either through a job or investments, then money is coming into your bank account and that is cash flow. But wait! – Before you start paying the bills- start by paying yourself FIRST- not after all the bills are paid, but before. Start with taking 10% of your salary and divide by 12 months.  That is the monthly amount you should save. Open up a savings account and request a direct deposit from your paycheck to your savings account. That is automatic savings and a smart way to start paying yourself first every month. Congratulations! You have made the first step in creating wealth- saving. A savings account will give you a cushion. Don’t worry if you are only getting a small amount of interest on the money. The point is to have some funds to rely on when the roof needs repair or the car breaks down. That’s what this money is for- short term expenditures and surprises that come up in life. Also a good savings account will prevent you from dipping into investment funds which should be held for the long term for maximum value. Many good investment plans go sour when they are dipped into for emergency cash. Keep them separated, and you will keep your investments intact and you are on your way to real wealth. I have written some posts also about having and maintaining good credit, too. After you have money going monthly into a savings account and your credit score is 720 or better, then you are ready for step #2. Congratulations! You have made the first step in creating wealth- a savings account and good credit.

The post Do-It-Yourself Financial Plan Step #1 -Cash & Credit first appeared on Whole Hearted Way.

]]> creditcashjeansDo-It-Yourself Financial Plan Step #1,  Cash and Credit

Cash flow is where you start. You may not think that you have cash flow but if you are earning money either through a job or investments, then money is coming into your bank account and that is cash flow. But wait! – Before you start paying the bills- start by paying yourself FIRST- not after all the bills are paid, but before. Start with taking 10% of your salary and divide by 12 months.  That is the monthly amount you should save. Open up a savings account and request a direct deposit from your paycheck to your savings account. That is automatic savings and a smart way to start paying yourself first every month.

Congratulations! You have made the first step in creating wealth- saving. A savings account will give you a cushion. Don’t worry if you are only getting a small amount of interest on the money. The point is to have some funds to rely on when the roof needs repair or the car breaks down. That’s what this money is for- short term expenditures and surprises that come up in life.

Also a good savings account will prevent you from dipping into investment funds which should be held for the long term for maximum value. Many good investment plans go sour when they are dipped into for emergency cash. Keep them separated, and you will keep your investments intact and you are on your way to real wealth.

I have written some posts also about having and maintaining good credit, too. After you have money going monthly into a savings account and your credit score is 720 or better, then you are ready for step #2.

Congratulations! You have made the first step in creating wealth- a savings account and good credit.

The post Do-It-Yourself Financial Plan Step #1 -Cash & Credit first appeared on Whole Hearted Way.

]]> 457 Get High Interest on Your Cash https://www.wholeheartedway.com/get-high-interest-on-your-cash-2/?utm_source=rss&utm_medium=rss&utm_campaign=get-high-interest-on-your-cash-2 Sun, 18 Apr 2010 06:18:47 +0000 https://www.wholeheartedway.com/?p=399 Cash is king right now. With people losing their jobs and the markets in negative territory, everyone is loading up on cash and I think that is the right thing to do. If the roof leaks, or the car needs repair, you will not have to use a credit card to pay for it, you can use your cash. But what if your cash is only getting- like mine-1-2%? Yikes! As I have said before, cash needs to keep up with taxes and inflation or else you are guaranteed to lose money. Why? ? Because your cash will lose its ability to pay for items like bread, gas, etc. that keep going up in price. After reviewing www.bankrate.com, I realized that I wasn’t doing any worse than the national average on my cash which is 1-3% depending on how you have spread out the maturities. So what else can I do? Peer-to-peer lending websites such as the ones below are gaining in popularity as a place to put short term cash at work. Let’s be clear-this is extra cash that you hold -not emergency cash savings. www.prosper.com www.lendingclub.com www.virginmoneyUS.com They work in two ways- either direct person to person lending or a pool of lenders buying into a pool of borrowers. In the past 20 months, Lending Club investors have earned an average annual return of 9.05% according to their website. Please read the prospectus for detailed information about the process, risk, and fees before purchasing. I know many Financial Advisors who have used VirginMoneyUS to help families and friends provide loans for college education, or to start businesses. If you are concerned about the low rates on your cash, think about putting a small portion into one of these online social networks that connect borrowers with lenders. I think it is going to be the wave of the future as credit and capital become hard to get.

The post Get High Interest on Your Cash first appeared on Whole Hearted Way.

]]> Cash is king right now. With people losing their jobs and the markets in negative territory, everyone is loading up on cash and I think that is the right thing to do. If the roof leaks, or the car needs repair, you will not have to use a credit card to pay for it, you can use your cash. But what if your cash is only getting- like mine-1-2%?
Yikes! As I have said before, cash needs to keep up with taxes and inflation or else you are guaranteed to lose money. Why? ? Because your cash will lose its ability to pay for items like bread, gas, etc. that keep going up in price.

After reviewing www.bankrate.com, I realized that I wasn’t doing any worse than the national average on my cash which is 1-3% depending on how you have spread out the maturities. So what else can I do? Peer-to-peer lending websites such as the ones below are gaining in popularity as a place to put short term cash at work. Let’s be clear-this is extra cash that you hold -not emergency cash savings.

They work in two ways- either direct person to person lending or a pool of lenders buying into a pool of borrowers. In the past 20 months, Lending Club investors have earned an average annual return of 9.05% according to their website. Please read the prospectus for detailed information about the process, risk, and fees before purchasing.

I know many Financial Advisors who have used VirginMoneyUS to help families and friends provide loans for college education, or to start businesses.

If you are concerned about the low rates on your cash, think about putting a small portion into one of these online social networks that connect borrowers with lenders. I think it is going to be the wave of the future as credit and capital become hard to get.

The post Get High Interest on Your Cash first appeared on Whole Hearted Way.

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