Connect with us


Budgeting for retirement | Practicing the 7 Baby Step Strategy



Budgeting for retirement | Practicing the 7 Baby Step Strategy

Remember those retirement dreams? The first step in making those dream come true is to get out of debt.

And the best way to do that is to follow the Baby Steps.

The seven Baby Steps are like a road map for your money.

They also act as guardrails to keep you from spending where you should not.

The Baby Steps help you get out of debt; save money for emergencies, retirement, and college for the kids; pay off the house; and give away buckets of money because you have been able to invest and save wisely.

Check out the seven steps below and decide which one you are on.

Retired granny

Baby Step 1: Save a $1,000 starter emergency fund.

This may not seem important, but without saving in the bank, you are just asking Murphy (Murphy’ law) to visit you or precisely move in for a few months. Only use it in emergencies.

Hint: a new pontoon boast is not an emergency.

Baby Step 2: Pay off all debts.

Now pay off all debts except your mortgage.
That’s another step from smallest to largest with the debts snowball.

To use the debt snowball, pay off your smallest debt first, whether it is $15 or $2,000.

Make the minimum payments on the other debts.

Once the smallest debt is paid off, use that money to tackle the next smallest debt, and so forth,

it is like a snowball gathering speed and momentum downhill, only it is your money that is making headway towards a debt free life and the retirement of your dreams.

Baby Step 3: Build your fully funded emergency fund of three to six months of expenses.

Notice I said expenses, not your salary.

This fund will cover your food, mortgage, utilities and other necessities in case you can’t work for some reason (illness, family emergency, layoff etc.) check out how to cut of expenses living a frugal lifestyle

Baby Step 4: Invest 15% of pretax income info retirement savings

If you make $3,000 a month, then you should invest $450 in a retirement fund like a 401(k) or 403(b).

if your employer will match your contributions, take advantage of that opportunity.

It is like putting free money into your retirement account!

Baby Step 5: Invest for your kids college savings

I recommended using an Educational savings account (ESA) if possible.

An ESA will allow you to invest $2,000 per year, per child, if your income is under $200,000.

If you want more information about savings for your kid’s college check out this other strategy College saving 529 Strategy

Baby Step 6: Pay off the house.

No, I am not kidding.

Yes, this is possible! Imagine the money you can put toward retirement once you don’t have a mortgage to worry about!

And before you say it, there is no “good” debt even for tax purposes.

Say you have $10,000 in interest payments in a given year.

The taxes on $10,000 (if you were in a 25% tax bracket) would be around $2,500.

You would be giving the bank $10,000 in interest in order NOT to pay the government $2,500.

That’s dumb, As much as the government wastes money, I would rather give Uncle Sam $2,500 than give the bank $10,000.

Baby Step 7: Build wealth and give a bunch away

This is what you have been dreaming of! As you continue to invest your money, you can watch it grow to fund your dream retirement.

The great news is that you also get to give to others, which feel greats! You can give to charity, your grandkids (or even great grandkids!). or a nonprofit whose passion you share.

Mitrobe Advice

Remember, debt is not just about borrowing money you don’t have, it is also about borrowing from your retirement dream.

Every dollar you spend to pay debt is a dollar you could have used for investing in your retirement future!

Let’s look at the Golden rules of creating true wealth.

Continue Reading
Click to comment

We will appreciate I'd you share your thoughts on this post with us

Business ideas

Top 10 Ways to Start a Business Online For Less Than $500




Start a business online

We’ve heard several fulfillment stories of Internet entrepreneurs like Jeff Bezos, who started out Amazon.Com from his garage, the use of reasonably-priced plywood to assemble desks.

There are ratings of others and that they never fail to make new marketers feel a little crushed or dare I say, jealous.

Well no longer each commercial enterprise has the rewarding ability of a number of those a hit agencies however it’s no cause for you not to have a worthwhile commercial enterprise of your own.

After you examine this article you’ll never should ask again, “I’m barely making ends meet. How can I start a business? “

Unfortunately, the bills don’t stop coming in only due to the fact you’ve decided to start a business. In truth, they seem to boom exponentially.

Your achievement, as finances-aware entrepreneur, will depend upon wondering and planning clever.


Below are 10 approaches to begin business for less than $500.

1. You may have to make some sacrifices but that is what small business is all about, at the least at first.

2. If you don’t already personal a laptop, buy a used or refurbished laptop.

With computer costs losing normal(new computer systems are starting at around $500), you may effortlessly reap an low priced, and fairly up to date computer for much less than $two hundred.

If that’s nevertheless more than you want to spend, recollect you can usually take a look at out what nearby corporations offer loose laptop use.

3. Start along with your local library!
For a professional internet website online, use a template earlier than hiring a expert.

Templates can begin at as low as $25 a piece. You can usually hire customized design offerings when you develop.

4. Use commercial enterprise report templates to offer professional invoices, letters, and contracts that you could without problems personalize.

5. Submit articles like this one to numerous e-zines without cost visitors.

Operating completely at the Internet is the exceptional manner to dramatically lessen startup expenses.

6. You can discover low cost and characteristic packed web hosting for less than $10 a month.

And custom domain names may be registered for beneath $10 per year.

7. Offer your knowledge on various net web site boards without cost self-merchandising.

Make sure you adhere to the submission guidelines of every website online.

8. Submit loose press releases concerning your new business on http://prweb.Com
Starting a provider commercial enterprise means you do not need to put money into any preliminary inventory!

9. Start a small pay-consistent PPC-click marketing campaign for beneath $200 to check your provide and produce in initial site visitors.

10. If you have got a retail business, make the preliminary orders on-demand, meaning you don’t purchase any stock until a person makes the acquisition.

Make certain you include the introduced time body whilst you estimate the anticipated shipping date in your customers.

The idea is to hold thinking creatively about how you may invest your dollars so that you can avoid spending an excessive amount of in anybody vicinity earlier than your business has verified itself.

You can redevelop your finances as you cross along and feel pretty at ease doing so. You by no means realize, you can be the subsequent large success tale.

Continue Reading


Forex Basic | learn how to read a Forex quote




Forex basic | learn how to read a Forex quote

As a general rule, each currency has a three letters symbol, which is used in Forex quotes.

The first two letters identify the name of the country while the third letter identifies the name of that country’s currency.

For example:

• AUD (Australian dollars)

• JPY (Japanese yen)

• CHF (swiss francs)

•CAD (canadian dollars).

When trading currencies, the trade is always done in pairs and so when you buy one currency, another currency is simultaneously being sold.

Forex trading

The most commonly traded currency pairs are

• Euro and US Dollar (EUR/USD)

• US Dollar and the Japanese Yen (USD/JPY)

• US Dollar and Swiss franc (USD/CHF)

• British Pound and US Dollar (GBP/USD)

The most commonly traded currency pairs are made from the most common and actively
traded currencies which are called the “Majors”.

The list of currencies below consists of the Majors

• USD (US dollars)

• EUR (European Euros)

• GBP (United Kingdom pounds)

• JPY (Japanese yen)

• AUD (Australian dollars)

• CHF (Swiss francs)

• CAD (Canadian dollars)

When quoting currency pairs, the first currency is referred to as the Base currency while the second referred to as the Counter or Quote currency.

The currency pair is used to represent how much Quote currency is required to exchange


• EUR/USD 1.3500 mean that one Euro is traded for 1.35 USD.

As such the Base currency is always equal to 1 monetary unit of exchange.

The dominant base currencies are, in order of frequency, the EuR, GBP, and USD.

When a currency is quoted against the US Dollar it is called a direct rate.

Any currency pair that does not trade against the US Dollar is referred to as a cross rate.

So what takes place once a trade is taking place?


• You buy British Pounds with the US Dollars – (GBP/USD), anticipating, the Pound to increase in value relative to the Dollar.

If the Pound rises relative to the Dollar, you sell the position (you Sell British Pound) and have made a profit.

Keep in mind that there are no standard cross-currency Quotes.

Some have the base currency on the top while others have it on the bottom.

So how can you tell which is which?

You need to know at least one pair of currencies and which one of the pair is the more valuable.

Dominant Base Currencies


• British Pound – GBP/USD, GBP/CHF, GBP/JPY, GBP/CAD


The Pip

The pip is the smallest unit of change in which a currency pair can move.

In the Forex world, currencies are traded in fractions of a Cent, or Euro, and so on.

Nearly all currency pairs consist of five significant digits and most pairs have the decimal point immediately after the first digit, with four decimal points to follow.

For example

EUR/ usd is equals to 1.3377.

In this example, a single pip equals the smallest change in the fourth decimal place – that is, 0.0001.

Therefore, if the quote currency in any pair is USD, then one pip always equal 1/100 of a cent.

The only notable exception to this rule is the USD/JPY pair where a pip equals $0.01.

A numeric example

You buy the EUR/USD, which is quoted with five digits in all out of which 4 decimals, at 1.3530 and sell it later at 1.3542.

The difference would be +12 pips, or. 0012.

However, in the case of the uSD/JPY currency pair, one has to make a note that it is quoted with only 2 decimals.

And so if you bought the uSD/JPY at 110.51 and it then went down to 110.31 where you have sold it, the difference would be -20 pips, or. 20 pips loss.

The pip difference would determine your calculation of profit/loss on the trade.

As mentioned earlier, the quote currency is translated into a certain number of units of the base currency.

For example

A quote of EuR/uSD at 1.35 means that, for every 1 euro, you get 1.35 uS dollars.

When the price of the quoted currency goes up, it indicates that the base currency

is becoming stronger and so one unit of the base currency will buy more of the quote currency.

On the other hand, if the price of the quote currency falls, the base currency is becoming weaker.

The Bid and the Ask

Forex quotes are shown in ‘bid’ and ‘ask’ prices.

The Bid is the price at which the market
maker is ready to buy a given currency

pair and so at this price the trader (seller) can sell the base currency to the market maker,

The Bid is shown on the left side of the quotation.

On the other hand, the ask is the price at which the market maker is ready to sell

given currency pair and so at this price the trader (buyer) can buy the base currency from the market maker,

The ask is shown on the right side of the quotation.

The ask price is also called the offer price.

Symbol Bid Ask

EUR/USD 1.3517 1.3520

Over the above Quote sample we can buy from the market maker one euro for 1.3520

american dollars, or sell one euro for 1.3517 american dollars to the market maker.

Continue Reading

Business ideas

Budgeting | When we have money we start making mistake | JACK MA.





“When we have money, we start making mistakes” a wise quote by Jack Ma. Founder and CEO AlibabaGroup

And here is where Budgeting the Finances comes to play.

And this is why we need to have good budgeting and finances skills.

A budget is a plan that is expressed in quantitative plans.

It is a prepared prior to a defined period time and it is pursued during that time for the purpose of attaining given objectives.

Do not create a budget just for the sake of having one,

you should have objectives to why your business keeps running on a budget annually.

when we have money we start making mistakes

Budgeting the Finances Objectives

1. Business Structure

A budget is especially useful for giving a company guidance regarding the direction in which it is supposed to be going.

Thus, it forms the basis for planning what to do next.

A CEO would be well advised to impose a budget on a company that does not have a good sense of direction.

Of course, a budget will not provide much structure if the CEO promptly files away the budget and does not review it again until the year.

2. Cash Flow Prediction

Cash Flow Prediction budget is extremely useful in copanies that are growing rapidly, that have seasonal sales, or which have irregular sales patterns.

These companies have a difficult time estimating how much cash they are likely to have in near term.

Which results in periodic cash-rated crises.

budget is useful for predicting cash flows,

but yields increasingly unreliable results further into the future.

Here is a guide that will help you increase your sales and here is how to increase your revenue (cashflow)

These companies have a difficult time estimating how much cash they are likely to have in near term.

Which results in periodic cash-rated crises.

A budget is useful for predicting cash flows, but yields increasingly unreliable results further into the future.

Here is a guide that will help you increase your sales \ and here is how to increase your revenue (cashflow)

3. Resource Allocation

Businesses use the budgeting process as a tool for deciding where to allocate money to various activities, such as fixed asset purchases.

Through a valid objective, it should be combined with capacity constraint analysis to determine where resources should really be allocated. take a look at ways to generate quality money making business ideas

4. Determining Performance

The objective in creating a budget is to use it as the basis for judging employee performance,

through the use of variances from the budget.

This is a treacherous objective, since employees attempt to modify the budget to make their personal easier to achieve.

5. Modeling Scenario

When a business is faced with a number of possible paths down which it can travel.

You can create a set of budgets, each based on different scenarios, to estimate the financial results of each strategic direction.

Though useful, this objective can result in highly unlikely results if management let itself become overly optimistic in inputting assumptions into the budget model.

what to consider before creating a budget

Business Plan

What to consider when creating a business budget

1. Start early

Most business begin the annual budgeting process by October to allow sufficient time to ensure the best detailed estimate is completed by the end of the year.

However, an annual budget should be monitored and updated on an ongoing basis, so it is never too late to get started.

2. Consult the other departments

The budgeting process should not be completed behind closed doors by accountants.

Instead, all the departments within the company should be consulted on their expectations for the following fiscal year.

This includes the sales team who can assist with realistic revenue assessments,

the manufacturing or service team who can advise on costs of delivery and any large purchases required to update machinery.

The research and development team who can discuss expected costs as well the timing on any new products anticipated.

3. Monitor, Evaluate and Re-forecast

When you have completed the budgeting process,

the biggest mistake you could make is to file it away only to pull it out again at the end of the following year.

A budget should be monitored on a monthly basis for smaller companies.

Budgets should be edited if circumstances change.

4. Conservativeness

While it may seem advantageous to show investors that the company will significantly grow.

Eventually may have been made using such projections.

When in doubt, it is a good idea to be more conservative if sales goals are delayed or not reached.

5. Calculate cash flow

While it is great to be able to put together a projected income statement.

It is as important to calculate the expected cash flow of the business.

These can be different considering that you may pay your bills faster than your customers,

pay theirs or you may need to purchase inventory well in advance of sales if acquisition time is significant.

6. Identify the capital expenditures

Often not considered in the budgeting process are those large or expensive purchase,

which are vital to the continued success of the business.

These may include new computers, systems, machinery, vehicles, furniture, and so on.

It is important to keep in mind that each new employee hired will likely require a certain amount of capital expenditure.

Investments in equipment or processes that are directly related to your product or services should also be considered.

7. Estimate the revenue


The expected sales have a significant influence on the costs incurred, but can be very challenging to accurately project.

Consider the recent monthly growth rate experienced by the company and decide if that is able to be continued.

Review industry guides and other expert publications that focus on your industry and review financial information from a number of your competitors, if available.

Communicate with your current customers to better understand their expected need of your product or service.


Continue Reading


%d bloggers like this: