Tag Archives: credit cards

A Financial Plan – The best way of effective saving

The process starts by taking an impartial look into the entire financial condition that you are in. This can be done by chalking out all what you own and what you owe. This forms the ‘net worth statement’. You have the assets in their current value and the cost of the liabilities. As you subtract the liabilities from your assets, you get a ‘positive’ net worth, if your assets are larger than your liabilities and vice-versa. In order to obtain taxation benefits, it is advisable to participate in an employer-sponsored retirement plan, such as 401(k), 403(b) or 457(b). In these plans money will get deducted from the paycheck.

Each small savings can add up to big differences for your future. Say, each day, you pay $1 for a cup of coffee, a very moderate price for a cup of coffee. This means, you spend $365 a year for a cup of coffee. Now, if you put this amount in a savings account, you get to earn a 5% interest and at the end on 5 years, the amount grows to $465.84, by the end of 30 years it comes to $1577.50. This is called ‘compounding’. So, a small amount can really add up to big money! Similarly, impulse buying can be checked through restraint. And, you might be surprised to find how the spare changes might add up at the end of the month. The high interest debt and credit cards can be paid off to save those dollars.

Save more by using your credit card

The financial condition the world over is such that one will have to think about savings very seriously. There are many ways by which you can save your hard earned money and you need to start with it today.

Credit cards have become a very common place financial instrument in the modern world. But most of you may not be aware of the fact that even a credit card can actually help you save a bit of your money, rather than making you spend more. Most of you are aware of the fact that most credit cards that are available in the market offer some sort of a return. This may be in the form of cash backs or points being added to your account depending up on the amount you have spent using the credit card.

If you are careful enough to choose the right kind of credit card, then you will be able to save a lot. Try to get yourself such a credit card which gives cash backs, as then you will get back a pert of money that you have spent. But if your credit cards gives you points, then you will have to buy more, by spending more in order to utilize the points within a specific date. So, while applying for your credit card read the fine prints and chose the card that gives you the most cash backs.