Friday, October 30, 2009
Thursday, October 29, 2009
Unsolicited Advice
As I look forward to retirement (given the current economy it will be later, rather than sooner,)
I ponder what I could have done differently in terms of handling my money. When I turned 30 I sobered up and started to take finances seriously. I dug myself out of debt and then started planning for retirement. When I read the below article I wish that I would have done these things much earlier in life. Consider this unsolicited advice from me to you:
Let's face it; we all don't make millions of dollars a year, and the odds are that most of us won't receive a large windfall inheritance either. However, that doesn't mean that we can't build sizeable wealth - it'll just take some time. If you're young, time is on your side and retiring a millionaire is achievable. Read on for some tips on how to increase your savings and work toward this goal.
Stop Senseless Spending
Unfortunately, people have a habit of spending their hard-earned cash on goods and services that they don't need. Even relatively small expenses, such as indulging in a gourmet coffee from a premium coffee shop every morning, can really add up - and decrease the amount of money you can save. Larger expenses on luxury items also prevent many people from putting money into savings each month.
That said, it's important to realize that it's usually not just one item or one habit that must be cut out in order to accumulate sizable wealth (although it may be). Usually, in order to become wealthy one must adopt a disciplined lifestyle and budget. This means that people who are looking to build their nest eggs need to make sacrifices somewhere - this may mean eating out less frequently, using public transportation to get to work and/or cutting back on extra, unnecessary expenses.
This doesn't mean that you shouldn't go out and have fun, but you should try to do things in moderation - and set a budget if you hope to save money. Fortunately, particularly if you start saving young, saving up a sizeable nest egg only requires a few minor (and relatively painless) adjustments to your spending habits.
Fund Retirement Plans ASAP
When individuals earn money, their first responsibility is to pay current expenses such as the rent or mortgage expenses, food and other necessities. Once these expenses have been covered, the next step should be to fund a retirement plan or some other tax-advantaged vehicle.Unfortunately, retirement planning is an afterthought for many young people. Here's why it shouldn't be: funding a IRA early on in life means you can contribute less money overall and actually end up with significantly more in the end than someone who put in much more money but started later. How much difference will funding a vehicle such as a Roth IRA early on in life make?If you're 23 years old and deposit $3,000 per year (that's only $250 each month!) in a Roth IRA earning and 8% average annual return, you will have saved $985,749 by the time you are 65 years old due to the power of compounding. If you make a few extra contributions, it's clear that a $1 million goal is well within reach. Also keep in mind that this is mostly interest - your $3,000 contributions only add up to $126,000.Now, suppose that you wait an additional 10 years to start contributing. You have a better job and you know you've lost some time, so you contribute $5,000 per year. You get the same 8% return and you aim to retire at 65. When you reach age 65, you will have saved $724,753. That's still a sizeable fund, but you had to contribute $160,000 just to get there - and it's no where near the $985,749 you could've had for paying much less.
Improve Tax Awareness
Sometimes, individuals think that doing their own taxes will save them money. In some cases, they might be right. However, in other cases it may actually end up costing them money because they fail to take advantage of the many deductions available to them. Try to become more educated as far as what types of items are deductible. You should also understand when it makes sense to move away from the standard deduction and start itemizing your return. However, if you're not willing or able to become very well educated filing your own income tax, it may actually pay to hire some help, particularly if you are self employed, own a business or have other circumstances that complicate your tax return.
Own Your Home
At some point in our lives, many of us rent a home or an apartment because we cannot afford to purchase a home, or because we aren't sure where we want to live for the longer term. And that's fine. However, renting is often not a good long-term investment because buying a home is a good way to build equity.Unless you intend to move in a short period of time, it generally makes sense to consider putting a down payment on a home. (At least you would likely build up some equity over time and the foundation for a nest egg.)
Avoid Luxury Wheels
There's nothing wrong with purchasing a luxury vehicle. However, individuals who spend an inordinate amount of their incomes on a vehicle are doing themselves a disservice - especially since this asset depreciates in value so rapidly. How rapidly does a car depreciate?Obviously, this depends on the make, model, year and demand for the vehicle, but a general rule is that a new car loses 15-20% of its value per year. So, a two-year old car will be worth 80-85% of its purchase price; a three-year old car will be worth 80-85% of its two-year-old value. In short, especially when you are young, consider buying something practical and dependable that has low monthly payments - or that you can pay for in cash. In the long run, this will mean you'll have more money to put toward your savings - an asset that will appreciate, rather than depreciate like your car.
Don't Sell Yourself Short
Some individuals are extremely loyal to their employers and will stay with them for years without seeing their incomes take a jump. This can be a mistake, as increasing your income is an excellent way to boost your rate of saving. Always keep your eye out for other opportunities and try not to sell yourself short. Work hard and find an employer who will compensate you for your work ethic, skills and experience.
Bottom Line
You don't have to win the lottery to see seven figures in your bank account. For most people, the only way to achieve this is to save it. You don't have to live like a pauper to build an adequate nest egg and retire comfortably. If you start early, spend wisely and save diligently, your million-dollar dreams are well within reach.
I ponder what I could have done differently in terms of handling my money. When I turned 30 I sobered up and started to take finances seriously. I dug myself out of debt and then started planning for retirement. When I read the below article I wish that I would have done these things much earlier in life. Consider this unsolicited advice from me to you:
Let's face it; we all don't make millions of dollars a year, and the odds are that most of us won't receive a large windfall inheritance either. However, that doesn't mean that we can't build sizeable wealth - it'll just take some time. If you're young, time is on your side and retiring a millionaire is achievable. Read on for some tips on how to increase your savings and work toward this goal.
Stop Senseless Spending
Unfortunately, people have a habit of spending their hard-earned cash on goods and services that they don't need. Even relatively small expenses, such as indulging in a gourmet coffee from a premium coffee shop every morning, can really add up - and decrease the amount of money you can save. Larger expenses on luxury items also prevent many people from putting money into savings each month.
That said, it's important to realize that it's usually not just one item or one habit that must be cut out in order to accumulate sizable wealth (although it may be). Usually, in order to become wealthy one must adopt a disciplined lifestyle and budget. This means that people who are looking to build their nest eggs need to make sacrifices somewhere - this may mean eating out less frequently, using public transportation to get to work and/or cutting back on extra, unnecessary expenses.
This doesn't mean that you shouldn't go out and have fun, but you should try to do things in moderation - and set a budget if you hope to save money. Fortunately, particularly if you start saving young, saving up a sizeable nest egg only requires a few minor (and relatively painless) adjustments to your spending habits.
Fund Retirement Plans ASAP
When individuals earn money, their first responsibility is to pay current expenses such as the rent or mortgage expenses, food and other necessities. Once these expenses have been covered, the next step should be to fund a retirement plan or some other tax-advantaged vehicle.Unfortunately, retirement planning is an afterthought for many young people. Here's why it shouldn't be: funding a IRA early on in life means you can contribute less money overall and actually end up with significantly more in the end than someone who put in much more money but started later. How much difference will funding a vehicle such as a Roth IRA early on in life make?If you're 23 years old and deposit $3,000 per year (that's only $250 each month!) in a Roth IRA earning and 8% average annual return, you will have saved $985,749 by the time you are 65 years old due to the power of compounding. If you make a few extra contributions, it's clear that a $1 million goal is well within reach. Also keep in mind that this is mostly interest - your $3,000 contributions only add up to $126,000.Now, suppose that you wait an additional 10 years to start contributing. You have a better job and you know you've lost some time, so you contribute $5,000 per year. You get the same 8% return and you aim to retire at 65. When you reach age 65, you will have saved $724,753. That's still a sizeable fund, but you had to contribute $160,000 just to get there - and it's no where near the $985,749 you could've had for paying much less.
Improve Tax Awareness
Sometimes, individuals think that doing their own taxes will save them money. In some cases, they might be right. However, in other cases it may actually end up costing them money because they fail to take advantage of the many deductions available to them. Try to become more educated as far as what types of items are deductible. You should also understand when it makes sense to move away from the standard deduction and start itemizing your return. However, if you're not willing or able to become very well educated filing your own income tax, it may actually pay to hire some help, particularly if you are self employed, own a business or have other circumstances that complicate your tax return.
Own Your Home
At some point in our lives, many of us rent a home or an apartment because we cannot afford to purchase a home, or because we aren't sure where we want to live for the longer term. And that's fine. However, renting is often not a good long-term investment because buying a home is a good way to build equity.Unless you intend to move in a short period of time, it generally makes sense to consider putting a down payment on a home. (At least you would likely build up some equity over time and the foundation for a nest egg.)
Avoid Luxury Wheels
There's nothing wrong with purchasing a luxury vehicle. However, individuals who spend an inordinate amount of their incomes on a vehicle are doing themselves a disservice - especially since this asset depreciates in value so rapidly. How rapidly does a car depreciate?Obviously, this depends on the make, model, year and demand for the vehicle, but a general rule is that a new car loses 15-20% of its value per year. So, a two-year old car will be worth 80-85% of its purchase price; a three-year old car will be worth 80-85% of its two-year-old value. In short, especially when you are young, consider buying something practical and dependable that has low monthly payments - or that you can pay for in cash. In the long run, this will mean you'll have more money to put toward your savings - an asset that will appreciate, rather than depreciate like your car.
Don't Sell Yourself Short
Some individuals are extremely loyal to their employers and will stay with them for years without seeing their incomes take a jump. This can be a mistake, as increasing your income is an excellent way to boost your rate of saving. Always keep your eye out for other opportunities and try not to sell yourself short. Work hard and find an employer who will compensate you for your work ethic, skills and experience.
Bottom Line
You don't have to win the lottery to see seven figures in your bank account. For most people, the only way to achieve this is to save it. You don't have to live like a pauper to build an adequate nest egg and retire comfortably. If you start early, spend wisely and save diligently, your million-dollar dreams are well within reach.
Neff/Carlis Family Photo
from the left, Amber, Arabelle, Fred, Maddoc, Phil, Cate, Aliyah, Phyllis, John, Rynda, Liz, Julia.(If you click on the photo you can make it larger)
Monday, October 26, 2009
Mickey and the Ketcher's
The Ketcher's spent some time in Disney World after Zac's wedding. Here are some photos.
Saturday, October 24, 2009
News from Cousin Jane
Hi, All You Cousins!
I just sent my "active civilian" son, Charlie, off toward Arizona today (from San Antonio). He's finally done with his military tour, so I can now remove my Proud Parent of a Soldier bumper sticker...hooray! Anyway, I called your mom to ask her about what she was doing for Thanksgiving and whether I might be able to co-op for the holiday. I have great memories of Thanksgivings in AZ with her (and your dad/grandpa of course) and since Charlie has spent the last two Turkey Days in Iraq, I just wanted to make it a family day. So I guess I am asking the backwards way whether you think LaVerne is up to this niece of hers making waves--out in the desert, no less. Call me if you have any thoughts about it (210-347-2717). Also, I'll be thankful to have my mom and dad come south for the winter, and if I could talk your mom into it, I'd suggest she fly over to SA and have y'all come down to the explore some new territory on your motorcycles. Cousin Vicki is somewhere in this neck of the woods, too, so you could really leave your imprints here in Texas!
Take care!
Cousin Jane
TO JANE:
If you want to have an early Thanksgiving Bonnie and Sue will be in AZ the weekend before Thanksgiving. Come on over!!! If that doesn't work for you, then by all means, call mom and invite yourself over. She'd LOVE it. Her phone number is 480-373-1108. I'm sure she'd be delighted to get a call from you.
I just sent my "active civilian" son, Charlie, off toward Arizona today (from San Antonio). He's finally done with his military tour, so I can now remove my Proud Parent of a Soldier bumper sticker...hooray! Anyway, I called your mom to ask her about what she was doing for Thanksgiving and whether I might be able to co-op for the holiday. I have great memories of Thanksgivings in AZ with her (and your dad/grandpa of course) and since Charlie has spent the last two Turkey Days in Iraq, I just wanted to make it a family day. So I guess I am asking the backwards way whether you think LaVerne is up to this niece of hers making waves--out in the desert, no less. Call me if you have any thoughts about it (210-347-2717). Also, I'll be thankful to have my mom and dad come south for the winter, and if I could talk your mom into it, I'd suggest she fly over to SA and have y'all come down to the explore some new territory on your motorcycles. Cousin Vicki is somewhere in this neck of the woods, too, so you could really leave your imprints here in Texas!
Take care!
Cousin Jane
TO JANE:
If you want to have an early Thanksgiving Bonnie and Sue will be in AZ the weekend before Thanksgiving. Come on over!!! If that doesn't work for you, then by all means, call mom and invite yourself over. She'd LOVE it. Her phone number is 480-373-1108. I'm sure she'd be delighted to get a call from you.
Friday, October 23, 2009
PC Crash
Mom's pc has crashed and she won't get a new one until mid November. She's not sure if she will blog yet using the neighbor's pc or not.
Monday, October 19, 2009
Thursday, October 15, 2009
Zac and Amber
The Bride and Groom Amber and Zac. What a great time we all had. 
Zac, Steve, Peggy and Jere
Zac, Steve and Jere
Zac and his grandma
Jere and his Cubs Beer mug
The Liebelt/Ketchers
Steve, Jeff, Peggy, Mom and SUE. YES, it's really SUE.
Zac, Steve, Peggy and Jere
Zac, Steve and Jere
Zac and his grandma
Jere and his Cubs Beer mug
The Liebelt/Ketchers
Steve, Jeff, Peggy, Mom and SUE. YES, it's really SUE.
Monday, October 12, 2009
Update on Everleigh
The pictures have arrived! Click on this website http://www.jenniegaskins.com/ and then click on clients in the upper right corner. It will then open up another tab and in that tab click on Baby Girl (picture of Everleigh with pink hat on-Oct 6th) and type in Everleigh and hit submit. The slide show will start right away and goes really fast. If you want to look at them slower like we did, page down and pause slide show then you can move to each picture using the previous and next key.
There are so many good pictures that it is going to be so hard deciding what to order!
Enjoy!
Love, Ami
ALSO:
Everleigh has had a very eventful week 5! You all know that she was in the ER due to some breathing problems and we are working with a speech pathologist to help resolve this. She has had a good weekend with our new plan of thickening her milk and getting new bottles and nipples. Everleigh is also dealing with acid reflux that we will be getting her new medication for once we resolve her swallow/breathing issue.
Everleigh has had play dates with Claire (Scott's cousin Josh's daughter), Finley (Ami's college friend Laura's daughter) and James (Ami's friend Nicole's son). We are all really looking forward to next Friday when Everleigh's cousin Ella comes to visit to meet for the first time. Everleigh's Grandma Paula and Papa Chuck also came to visit this weekend and couldn't believe how much she had changed since their last visit. (Pictures to come next week.)
Everleigh started to smile this week and makes really funny faces. She recognizes her mommy and daddy's faces and will stare at them constantly as long as she is awake. Everleigh still doesn't like to be put down to sleep so Ami spends most of the day with her in a sling close to her heart. Everleigh got her first Halloween costume this week which was bought at Build a Bear because they were small enough to fit her, it was pretty comical.
Again we thank you for your continuous prayers. We love our little princess and thank God every day for her being blessed in our lives.Love, Ami & Scott
Everleigh has had play dates with Claire (Scott's cousin Josh's daughter), Finley (Ami's college friend Laura's daughter) and James (Ami's friend Nicole's son). We are all really looking forward to next Friday when Everleigh's cousin Ella comes to visit to meet for the first time. Everleigh's Grandma Paula and Papa Chuck also came to visit this weekend and couldn't believe how much she had changed since their last visit. (Pictures to come next week.)
Everleigh started to smile this week and makes really funny faces. She recognizes her mommy and daddy's faces and will stare at them constantly as long as she is awake. Everleigh still doesn't like to be put down to sleep so Ami spends most of the day with her in a sling close to her heart. Everleigh got her first Halloween costume this week which was bought at Build a Bear because they were small enough to fit her, it was pretty comical.
Again we thank you for your continuous prayers. We love our little princess and thank God every day for her being blessed in our lives.Love, Ami & Scott
Sunday, October 11, 2009
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