Saving for an emergency

Financial or other emergencies happen even in retirement, if your plan for money for your next emergency is to scoop up the change that falls between the cushions, you might want to come up with a plan to add to that stash. It is always a good idea to have a little extra green for the lean times. Rainy days could be just around the corner. Rainy day funds become necessary! Here are some very clever and painless ways to put aside some money now!

Put aside a large envelope, cookie tin, coffee jar or something similar. At the end of every week, throw a couple of dollars aside. By the end of your first month, you should have some extra cash put aside to have a nice start on an emergency fund. The idea of doing this is don’t count it or spend it. Place it somewhere that is hidden away. Put it somewhere that you won’t be tempted to dip into it. This kind of money really adds up!

The next time you treat yourself or your family to a meal out, tip yourself! Just as you go to tip the waitress 15 to 20 percent, put the same amount aside for yourself. When you get home, stash it away in your cookie jar. Every time you go through a fast food window, put a dollar away for that cookie jar, too!

Take advantage of that cash back option! Next time you make a purchase using your debit card, ask for a small amount of cash back. Instead of spending it, stash it away in your cookie jar! Chances are you won’t even miss that extra $1, $2 or $5 bill and come an emergency time, you will notice how the amount has piled up.

Next time you pay off that big-ticket item like a new car or tuition, continue to make the payments to yourself! Set up a savings account and each month slip the ghost payment into it. Watch as it builds nicely.

Consider joining a Christmas club. You will save a lot of money. Each year you put aside a bit of money and place it into a hamper program. Then, as Christmas rolls around you don’t need to scramble looking for Christmas cheer to share with your family. Your hamper arrives filled to the brim with all kinds of seasonal goodies that you paid for over the previous year. You can easily put aside $50 each year towards your emergency fund this way and you and your family will enjoy a hassle-free Christmas.

Sign up for a grocery shopping membership card. At the bottom of your store receipt, you will see a print out that states how much you save each week. It really adds up. You can easily save an average of $15 on each weekly grocery trip. Add that amount, each week, to your savings cookie jar.

Did you enjoy your tax refund this year? Sure you did, we all did. That’s because of the new tax laws. Many people will have a little extra money coming their way. Decide to deposit that extra money right away into your savings account or cash it and then stash it.

If you are a responsible spender, take out a credit card that rewards your loyalty. When you pay off the bill every month, use a card that promises a cash reward and bank the money. Use your reward credit card smartly and you could end up with a very nice windfall for your rainy-day fund.

Put aside a large mouthed jar in the kitchen. It is very likely that your parents and grandparents had one. At the end of each workday simply empty your pockets or clean out your change purse. All the change goes into the jar. Who wants to carry around all that dead weight, anyway? Your spare change adds up a lot faster than you think. While you are at it, add at least one bill to your change jar at the end of each week. Aim for a $20!

Is it time to give up that nasty smoking habit? Imagine the money you will save! If you are not quite ready to quit at least cut back by half. Put the savings each day into your change jar and watch it overflow!

Convert to a coin-operated laundry. Keep a jar on your washer and dryer and every time you go to do a load of laundry, slip in a coin or two. This adds up month by month.

If you yearn to lose some weight, try rewarding yourself the cost of the item that you do without each day. Put that money into your change jar. You will look great and you will be saving for a rainy day! 

Setting up an emergency fund

As we moved through life, many of us set up or thought about setting up an emergency fund to look after any serious financial setbacks that might occur. As Boomers, we went through a number of recessions, high interest and other obstacles, and as we retire we still have to be cautious of our spending and savings.

I think that most of us at one time or another has been hit with a serious money crisis and we find yourself scrambling around for emergency money. Here are some ideas on how to assess your situation and get back on your feet.

If you have a money problem or a financial setback you can be sure that there may also be a crippling emotional setback. Whenever a money emergency hits, it will be your ability to deal with the individual pitfalls that will be useful. We know that stress will tend to accumulate and make your life much more difficult to cope.  

Being Calm is the First Key to Managing a Money Emergency. You will not be so overwhelmed when you can calmly and rationally look at each individual problem as it arises. Staying calm must take center stage. You must NEVER allow yourself the luxury of panic. There is no one there for you to just take over. You are all you have.

The more you panic, the less effective you will be. You need to keep a very clear head to be able to sit down and come up with an appropriate plan. It is only when you are at your most calm that you will be prepared to get to where you need to be and then overcome.

At even the first hint of a money emergency, it’s important not to act right away. If you do you will inevitably make a mistake! First, before you can manage your finances again, you have to first manage your emotions. You absolutely must regain your balance before you can even begin to plan.

If your money emergency demands that you act quickly, think first about seeking the advice of a debt counsellor, money coach or financial planner. Whenever possible think about seeking out the aid of a financially perceptive friend or family member who can help you to come to a clearer perspective.

Remember the old adage that “two heads are always better than just one!” You won’t need to make a major cash investment if you’re strapped. Look for a planner who will give you a one-hour consultation for $150. Often times this will be all you will need to securely turn the corner.

Before an emergency hits here are some everyday ways to save and set up an emergency fund. Some ways will require some sacrifice, while others will require little before thinking. The point is to be forever mindful of saving those pennies and before you know it, you will have saved up a tidy sum.

·       Spend less money than you earn each week.

·       Seek out a higher paying job.

·       Keep your job skills sharp and up-to-date so that when a new opportunity comes up, you will be on your toes and first in line.

·       If you must use credit cards/cut up those you can do without.

·       If you must use credit cards, pay them all down in full each month.

·       If you have credit card debt at high rates, consolidate at once.

·       Lower your expenses, one by one.

·       Forego purchasing non-essential items.

·       Find cheaper insurance rates/then switch over.

·       Use coupons to shop with.  Don’t purchase without a discount coupon.

·       Wait for things to first go on sale before buying. Take advantage of catalogue saving certificates.

·       Don’t buy an item just because it is on sale.

·       Buy generic or non-name brand merchandise as much as possible.

·       Wait for prices to fall to a discounted rate before buying (applies especially to electronics items).

·       If you do eat out, buy gift certificates for half price meals.

·       Do more stay in activities at home.

·       Invest the money you save to earn even more.

·       Create a plan to save $200 each month (or as much as you can manage.)  Never miss the monthly savings payment to yourself and try to find ways to increase it.

·       Don’t spend money just because you have it.

·       Find an interesting hobby to occupy your time and stop you from spending money.

·       Find a hobby that you can turn into earnings.

·       Go on a sensible diet and lose weight. You will save money on food, look and feel better, and your long-term health care costs should fall dramatically.

·       Learn how to manage your finances by reading financial publications.

·       Increase the amount of money you earn through a second job, promotion, new job, investments, etc.

·       Paying down your debt is also a way to save money (it saves you from a debt payment and brings you closer to having money to invest).

·       Switch to lower your telephone bill.

·       Lower your cable bill by deleting pay channels or switch to a streaming service.

·       Be patient when bargain shopping.

·       Start saving money today! Don’t give up -- put just $10 aside, today!

Do you have issues?

Just a little "FYI," "Heads up," and "Check this out!"

It's no one's responsibility to tell you what your "issues" are, and contrary to popular thinking most will not. 

Which pretty much means there's only one person you can trust in such matters, and it ain't me, but I think you know who that person is, don't you?

International Day of the older person

Today is a special one for older people and senior citizens around the world. Officials and politicians will be making speeches that focus on our age group, which is a growing section of the population. The media may also take this as an opportunity to publish interviews with older persons who have had an impact on society. Schools, public institutions and office buildings may also use the day for announcing activities that promote older persons. Did you know about this day? No, here is some information and background.

On 14 December 1990, the United Nations General Assembly designated 1 October the International Day of Older Persons. This was preceded by initiatives such as the Vienna International Plan of Action on Ageing – which was adopted by the 1982 World Assembly on Ageing – and endorsed later that year by the UN General Assembly. In 1991, the General Assembly adopted the United Nations Principles for Older Persons.
Almost 700 million people are now over the age of 60. By 2050, 2 billion people, over 20 percent of the world’s population, will be 60 or older. The increase in the number of older people will be the greatest and the most rapid in the developing world, with Asia as the region with the largest number of older persons, and Africa facing the largest proportionate growth. 

The particular needs and challenges faced by many older people are clearly required. Just as important, however, is the essential contribution the majority of older men and women can continue to make to the functioning of society if adequate guarantees are in place. Human rights lie at the core of all efforts in this regard.